I like this...we are growing in multiple directions...see last earnings release...stock around 1 3/16 this am:
(CAP MKTS) DJC: VideoLabs Acquisition -3: In A Cash, Stock Purchase
DJC: VideoLabs Acquisition -3: In A Cash, Stock Purchase
VideoLabs said Acoustic Communications' electronic commerce site is designed
to compete in the hardware segment of collaborative tools market.
VideoLabs said the acquisition will allow it to use its "strong balance
sheet through a cash and stock purchase and the utilization of existing tax
loss carry forward credits."
The company expects to sign the definitive agreement in early May and has
postponed it shareholders meeting as the acquisition requires shareholder
approval.
A spokesman for VideoLabns said the combined company would provide services,
hardware and combined hardware and software products.
VideoLabs provides image capture transmission and manipulation for
professionals in education, audio-visual, identification and medical
markets.
(END) Dow Jones Newswires 04-27-99
0953EDT
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(BSNS WIRE) VideoLabs to Purchase Acoustic Communication Systems
VideoLabs to Purchase Acoustic Communication Systems
Business Editors
MINNEAPOLIS--(BUSINESS WIRE)--April 27, 1999--VideoLabs, Inc.
(NASDAQ: VLAB) announced today that it has signed a letter of intent
to merge with Acoustic Communication Systems, Inc., a privately held
company headquartered in Plymouth, Minnesota.
Acoustic Communication Systems, with past annual sales in excess
of $10 million, is the leading independent provider of collaboration
solutions involving data and video conferencing in the Midwest and one
of the largest value-added resellers of PictureTel and Polycom(R)
equipment in the country. Acoustic Communication Systems manufacturers
several peripheral devices such as carts, speakers, furniture and
microphones for visual communication solutions. Acoustic Communication
Systems recently launched an e-commerce site,
www.meetingroomtools.com, to compete in the $1 billion collaborative
tools (hardware only) market.
Chairman and CEO of VideoLabs, James Hansen said, "We are excited
by the potential of the integration of the strengths of the two firms
to exploit the growth in the collaboration industry. Hardware sales in
videoconferencing grew by 15% annually from 1993 to 1997, but
increased by 40% in 1998 as transmission costs decreased and
performance improved. This growth was derived primarily from
organizations' emphasis on reducing project cycle times and improving
communications. Industry analysts predict that significant growth lies
ahead as standards allow cross organization communications."
Rob Sheeley, President of Acoustic Communication Systems said,
"This purchase positions the combined entity as a provider of
services, hardware peripherals and solutions through multiple channels
to serve the expected market growth according to industry analysts. I
anticipate that the next several years will have other mid-size
value-added resellers and small manufacturers seeking strategic
partnerships with firms like ours in order to efficiently reach the
target customers."
Hansen continued, "The purchase will also allow us to utilize our
strong balance sheet through a cash and stock purchase and the
utilization of existing tax loss carry forward credits. The definitive
agreement will be signed in early May, thus we have postponed our
annual meeting as the acquisition requires shareholder approval."
About VideoLabs, Inc.
VideoLabs, Inc. (NASDAQ: VLAB), is a publicly traded provider of
image capture transmission and manipulation based solutions for
professionals in education, audio-visual, identification and medical
markets. The company is located at 5960 Golden Hills Drive, Golden
Valley, MN 55416 and can be reached at 612-542-0061 or by fax at
612-542-0069. Internet address is www.videolabs.com.
Certain matters discussed in the press release are forward
looking statements made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including the
Company's expectations regarding 1999 profit, the timing of the new
product introductions and the expectation of lowered costs of
materials. All forward-looking statements involve risks and
uncertainties. In addition to the factors discussed above, other
factors could cause actual results to differ materially from those
described, including market acceptance of existing and new products;
the receipt or cancellation of orders and timing of the Company's
ability to recognize revenue from those orders; the timely development
and market introduction of new products; the growth and timing of new
applications; the successful expansion of distribution channels;
changes in general economic conditions; cost and availability of
components; and fluctuations in foreign exchange rates. In addition,
the markets for the Company's products are characterized by
significant competition, and the Company's results may be adversely
affected by the actions of existing and future competitors, including
the development of new technologies, the introduction of new products,
and the reduction of prices by such competitors to gain or retain
market share.
--30--cr/ms*
CONTACT: VideoLabs, Minneapolis
James Hansen, President & CEO
612-542-0061 ext. 224
jhansen@videolabs.com
KEYWORD: MINNESOTA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS MEDICINE EDUCATION
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