SE to Exit Telecommunications Technologies MarketCompany to Focus on Marketing and Increasing Profitability on Recently Announced Contract Awards
PR NEWSWIRE - February 10, 2003 16:51
ALEXANDRIA, Va., Feb 10, 2003 /PRNewswire-FirstCall via COMTEX/ -- VSE Corporation (Nasdaq: VSEC) announced today that it has decided to stop marketing the services provided by its Telecommunications Technologies Division ("TTD"). Since September 2000, TTD has marketed products, services, and support in network, multimedia, and audio-visual technology to commercial organizations and other customers. TTD will cease marketing efforts immediately and will satisfy all remaining contractual obligations prior to ceasing business operations. Certain technical capabilities will be transferred to other VSE divisions.
Revenues generated by TTD were about $6 million in 2002, representing less than 5% of VSE's expected 2002 consolidated sales. Losses in this division, which will now include a $576 thousand loss associated with the impairment of intangible assets that were acquired by TTD in 2000 to enhance its business development efforts, will result in a reduction to VSE fourth quarter income. TTD losses in the fourth quarter of 2002 are expected to be approximately equal to the income generated by VSE's other divisions and subsidiaries during the same quarter.
VSE Chairman, President, and CEO/COO Don Ervine said, "Based on our 20% sales growth in 2002 and the series of contract awards we have announced recently, our management team is focused on satisfying customers and achieving the revenue and profit potential of our traditional business areas and customer base. With our recent contract wins, VSE has a great opportunity to grow and achieve increased revenue and profit in 2003. I look forward to reporting our progress to you in the months and year ahead." |
