Zeev, still projecting $75 (but with extra time)? At this point, I'd be happy with $15, which is inevitable if they survive at all. <VBG>
Any comments on the press release below? Does this make FERO a buy, or is it just a sign of weak management throwing in the towel at the bottom?
Ferrofluidics Announces Sale of Crystal Puller Business
NASHUA, N.H.--(BUSINESS WIRE)--Sept. 23, 1998--Ferrofluidics Corporation
(NASDAQ:FERO - news) today announced the sale of the business, intellectual
property, and certain inventory, fixed assets and tooling of its Systems Division to
Kayex, a division of General Signal Technology Corporation, for $10,800,000 in cash.
Under the terms of the agreement, Kayex will have the right to design, market,
manufacture, and sell Ferrofluidic(R) crystal growing systems worldwide for all future
industrial requirements. It is also anticipated that a number of Ferrofluidics Systems
Division employees will be offered employment by Kayex. Ferrofluidics will continue to
honor and complete existing orders and warranty responsibilities, and will retain all
liabilities of the Systems Division.
Paul F. Avery, Jr., Chairman and Chief Executive Officer of Ferrofluidics, stated ''Our
divestiture of the Systems business is consistent with the recently announced refocusing
of the Company back to its Core Technologies. The cash received will permit the
Company to repay essentially all of its short term debt, and will thus result in substantial
interest savings going forward.''
This press release contains forward-looking statements within the meaning of the federal
securities laws. There are certain factors that could cause actual results to differ
materially from those anticipated by the statements made above. For additional
information concerning these and other important factors which may cause the
Company's actual results to differ materially from expectations and underlying
assumptions, please refer to the reports filed by the Company with the Securities and
Exchange Commission.
Ferrofluidics is the pioneer and world leader in ferrofluidic technology. Founded in 1968
and based in Nashua, New Hampshire, Ferrofluidics has established technical support
facilities in the United States, Germany, the United Kingdom, Spain, and Japan.
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Contact:
Ferrofluidics Corporation
William B. Ford, 603/883-9800 |
