An update from Spectrum.
Spectrum Holdings Completes Acquisition of Horne Engineering Services, Inc.—Creates $100 Million Homeland Security and Defense Company
Horne Engineering Provides Proven Management Team, Performance Culture and Strategic Alliances
FORT WALTON BEACH, FL, May 19, 2005—Spectrum Sciences & Software Holdings Corp. (OTCBB: SPSC) announced an agreement of terms for its merger with Horne Engineering Services, Inc., a leading technology and technical engineering solutions company.
Spectrum Holdings, itself a leading developer of full-service, quality solutions for complex and diverse government initiatives, views the merger as a way to continue to build on its own progress in the quickly expanding homeland security sector.
Safety. Security. Sustainability.
With the completion of the merger, Horne Engineering will join other Spectrum Sciences & Software Holdings Corp. companies—including Spectrum Sciences & Software, Inc. (SSSI), M&M Engineering and Coast Engine and Equipment Company (CEECO)—to form a company anticipated to generate 2005 revenues of $100 million, with more than 75% of its business coming from the growing homeland security and defense sectors.
Equally important, Spectrum’s cash and cash equivalents are more than $9.5 million. Additionally, the company reported little debt, having paid down more than $3 million of various debts, providing a solid base from which to build and grow.
Recently (April 22, 2005), Spectrum Holdings Corp. announced a stock buyback program of up to two million shares of its common stock— because the company believes that recent trading prices for it’s stock do not reflect it’s long-term value.
Under the merger agreement, Darryl K. Horne will assume the duties of President and CEO of Spectrum Sciences & Software Holdings Corp. Withdrawing President and CEO William Ham will remain on the board of Spectrum Holdings and continue in his role as President and CEO of Spectrum Sciences & Software, Inc. Michael Megless, current CFO of Horne Engineering, will be CFO of Spectrum Holdings.
The addition of Horne Engineering to the Spectrum portfolio of companies and the appointment of Horne leadership to the top positions of Spectrum Holdings offer invaluable experience in profitable, accelerating growth in the government market.
Mr. Ham stated, “The merger with Horne Engineering Services, Inc., is just one of a series of strategic moves that are being made to take full advantage of the tremendous opportunities created by the increased government focus on such areas as homeland defense and border security.”
“The Horne Engineering merger,” Ham added, “brings a powerful leadership team and vision for how to accelerate our portfolio’s growth by delivering superior solutions. The Horne Engineering team has perfected the strategic management platform—performance management, holistic engineering approaches and a relentless focus on the customer—that will be the foundation for achieving our goals."
Strong, entrepreneurial leadership
Horne Engineering founder Darryl K. Horne, P.E., who will head Spectrum Holdings, has built a reputation over the past 15 years of taking care of his customers, primarily in the government sector.
An award-winning entrepreneur, Mr. Horne is seen as a dynamic and knowledgeable businessman with the ability to make Spectrum Holdings a world-class enterprise. At Horne Engineering, he showed the skills needed to attract and lead smart, talented professionals and successfully differentiate themselves from formidable competition.
Today, more than half of Horne Engineering’s staff holds security clearances, and its entire headquarters carries a secret security designation.
Horne Engineering provides its clients with the systems analysis, integration and program management skills needed to achieve their strategic goals and objectives.
“Over the past several years, we’ve been involved in some very exciting work, developing and managing a diverse selection of projects for the government,” stated Mr. Horne. “Now we look forward to integrating our expertise with the rest of the Spectrum family.”
As the new President and CEO of Spectrum Holdings, Mr. Horne will work with each of the businesses to tailor and implement a strategic plan to accelerate growth across the entire family of Spectrum companies.
“Horne Engineering is a values-driven company,” said Mr. Horne. “Our clients’ successes promote our continued success.”
“You’ll also find we manage our company as a performance-driven organization,” he added. “We constantly focus on our customers and their problems. Plus, we leverage our unique holistic engineering and program integration to consistently deliver the right solution, every time. This is the mindset I will instill throughout the Spectrum companies.”
Maximizing synergy and growing the Spectrum portfolio
Mr. Horne went on to say, “There are a number of areas where our businesses will be supporting each other to accelerate our growth.”
“In some cases,” Horne added, “we will be lending management and creative skills to a project contracted through another division or company, and in others we anticipate using the manufacturing capabilities of another group to complete one of our projects.”
Horne Engineering has homeland security and defense contracts that offer channels to expand the reach of Spectrum products and solutions into these markets.
Horne Engineering’s clientele mesh well with those of Spectrum—including the Department of Defense, the United States Navy, the United States Air Force, and the United States Marine Corps, among others. Spectrum’s proprietary products include its Safe-Range program, used at most U.S. bombing training facilities for the past 20 years, and the newly developed Safe-Borders program, which is being presented to the Department of Homeland Security as a key component in sealing U.S. borders.
Additionally, Spectrum Holdings will continue to evaluate new acquisition opportunities. This will allow for growth through market penetration and continued expansion of its portfolio of capabilities and solutions.
Mr. Ham said, “We are very impressed by what Darryl and his group have been able to do so far within the government community and look forward to having them on board guiding the future of the company.”
About the company
Spectrum Sciences & Software Holdings Corp. is a growth-oriented, customer-focused company that provides an integrated suite of manufacturing, technology and technical engineering services.
The Spectrum Holdings family of companies has more than 350 employees. In addition to Horne Engineering, the Spectrum family includes Spectrum Sciences & Software, Inc., M&M Engineering, and Coast Engine and Equipment Company.
Learn more about Spectrum Sciences & Software Holdings Corp. at www.spectrumholdingscorp.com
Cautionary Statement
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, risks set forth in documents filed by the company from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. |
