Signal Technology Acquires Advanced Frequency Products; Acquisition Positions Company in the High-Growth Commercial Wireless Market
DANVERS, Mass.--(BUSINESS WIRE)--Dec. 27, 1999--Signal Technology Corporation (AMEX: STZ) today acquired the assets of privately held Advanced Frequency Products (AFP) of Andover, Massachusetts. AFP is a leading provider of high-frequency millimeter wave and microwave transceivers for the fast growing broadband wireless communications infrastructure marketplace. Financial terms of the transaction were not disclosed.
George Lombard, Signal Technology's chairman and chief executive officer, stated, "It is an exciting time at Signal. Our mission to revitalize Signal's operations and set a strategic course for strong growth is on track. We have installed a new management team of experienced, highly respected and motivated executives, and we have reported five consecutive quarters of profitability while building a healthy backlog. Acquiring AFP is a key element in our strategy to accelerate our top-line growth, particularly within the commercial marketplace. Given our healthy balance sheet and our strong cash flow, we plan to invest in further developing Signal/AFP's position in the commercial wireless market, with emphasis on building its sales, marketing, and research and development capabilities."
Dr. James V. DiLorenzo, Signal's president, continued, "AFP possesses excellent technology and products, and a strong position in the emerging point-to-point and point-to-multipoint transceiver marketplaces. Combined with Signal's recent developments in wireless technology, the addition of AFP positions us well for success in the wireless communications infrastructure marketplace."
Tom Leiberman, chairman and chief executive officer of AFP, stated, "Everyone at AFP is enthusiastic about joining forces with Signal. Over the past year, we evaluated a number of potential strategic relationships with an array of industry-leading firms and found an ideal match in Signal Technology. Signal has the management vision, manufacturing capabilities and financial resources necessary to help facilitate AFP's continued growth."
AFP, which has a current backlog in orders of approximately $6.5 million, manufactures and markets transceiver modules, as well as transmitters and receivers, for microwave and millimeter wave radios, local multipoint distribution systems (LMDS), microwave video distribution systems (MVDS) and wireless broadband. AFP boasts a growing, global customer base that includes major communications and electronics companies and emerging start-ups in the United States, Europe and Israel. AFP's bookings through 1999 have exceeded its expectations, resulting in a strong backlog. This success is due to its achievements in rapid development and fielding. |
