INTEK 10-Q for June 30, 1997
A copy of IDCC's 10-Q may be accessed at:
sec.gov
Among other things noted in the 10-Q is the recent acquisition of
EF Johnson by TRANSCRYPT, which reads as follows:
On July 31, 1997 the Company entered into a Purchase Agreement with Transcrypt International Inc. ("Transcrypt") whereby the Company exchanged its investment in E.F. Johnson ("EFJ") for 375,000
unregistered shares of Transcript common stock (the "Transcrypt Shares"). The book value of the Company's investment in EFJ
the "EFJ Shares") was approximately $10 million. The fair market
value of the Transcrypt Shares is approximately $4.2 million. Under the terms of the Radiocoms Acquisition, the Company has been
indemnified by Securicor for any loss attributable to or resulting
from the transfer of the EFJ Shares to Radiocoms. Further, the Company may utilize securities, properties or other rights or instruments into which the EFJ Shares are converted (to be valued at a price determined by an independent expert) to redeem $10 million of preferred stock of Radiocoms held by Securicor (the "Securicor Put"). The Company may utilize the Securicor Put on or after March 15, 2000. The Company believes the full book value of the EFJ investment (i.e. $10 million) at June 30, 1997 will be realized through a combination of the proceeds of the Transcrypt Shares and the reduction of the Securicor preferred stock liability, through the utilization of the Securicor Put or demand for indemnification. This transaction will be recognized in the fourth quarter.
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IDCC Management also includes a DISCUSSION AND ANLYSIS of Financial Condition and Results of Operations on Page 15 of the 10-Q.
MEADOWS COMMENT:
I am yet a firm investor and long on IDCC. I do believe some changes
would be helpful for the company ... the most important of which would
be stronger leadership - by that I mean more *upfront* *let's get this
operation-moving* type of ability to respond (responsibility) to the forward dynamics of the company. AND, of course, a concerted focus on moving ahead with the substance of the company's business.
Good investing to you all!
MEADOWS |
