GSLI seems all set to expand and grow!
Monday July 24, 4:04 pm Eastern Time
Press Release
SOURCE: GSI Lumonics Inc.
GSI Lumonics Signs Letter of Intent to Acquire an Optics Company
KANATA, Ontario, July 24 /CNW/ -- GSI Lumonics Inc. (Nasdaq: GSLI - news; Toronto: LSI - news) today announced the signing of a letter of intent to acquire a private California based company which designs and manufactures precision optics. The terms of the transaction were not disclosed.
"As stated previously, this acquisition is in line with our strategy for expanding our capabilities and capacity to supply high quality optics to the rapidly growing fiber optic telecommunications market," said Charles Winston, President and CEO of GSI Lumonics.
The name of the company will not be disclosed until a definitive purchase and sale agreement has been signed and all required regulatory approvals obtained. The transaction is expected to close early August. The company currently supplies products to the semiconductor, aerospace and defense industries with annual sales of approximately $8 million. "We expect to more than double revenues within the first 12 months by utilizing their unique skills to design and manufacture optics for telecom customers" said Mr. Winston. "We bring customers and products and they have the skilled workforce, manufacturing processes and management experience to ramp up production."
The acquisition complements GSI Lumonics' precision optics manufacturing facilities in Nepean, Ontario. "Approximately 1% of our 1999 revenues were in telecom optics and we expect at least 3% this year" said Mr. Winston. "With this acquisition and expansion plans in Nepean our goal is to increase telecom optics to at least 10% of total sales in 2001."
GSI Lumonics Inc. supplies laser-based automated advanced manufacturing systems, components and services to the semiconductor, electronics and automotive markets, as well as precision optics for telecommunications. GSI Lumonics' common shares are listed on Nasdaq (GSLI) and The Toronto Stock Exchange (LSI). The Company's web site address is www.gsilumonics.com.
For further information:
GSI Lumonics Inc.
Fran Crecco
978-439-5511 (ext: 6104)
To the extent this news release discusses financial projections, information or expectations about GSI Lumonics Inc., products or markets, or otherwise makes statements about the future, such statements are forward looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. The factors include the fact that the companies' sales have been and are expected to continue to be dependent upon customer capital equipment expenditures, which are, in turn, affected by business cycles in the markets served by those customers. Other factors include continued volatility in Asia and in the semiconductor industry, the risk of order delays and cancellations, the risk of delays by customers in introducing their new products and market acceptance of products incorporating subsystems supplied by the companies, similar risks to the companies of delays in their new products and other risks detailed in the companies' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
For further information
Fran Crecco of GSI Lumonics Inc., 978-439-5511, ext. 6104 |
