Fuel someone is selling ... Here is a hoot ... shareholders win a
lawsuit and guess what's coming ... you got it a reverse split ...
plus this company has had 4 profitable quarters ...
Centennial Technologies Schedules Distribution of Shares in Settlement of Class Action Litigation
WILMINGTON, Mass.--(BUSINESS WIRE)--May 28, 1999--Centennial Technologies, Inc. (OTC:CENL - news) announced today that the United States District Court for the District of Massachusetts has entered an order adopting the analysis of shareholder claims prepared by counsel for the plaintiffs in the Centennial class action litigation. This court order paves the way for Centennial to make the final distribution of 4,784,083 shares of Centennial common stock to those shareholders whose claims have been allowed. The Company expects to mail share certificates directly to these claimants in mid-June. Plaintiffs' counsel will mail the cash proceeds of the settlement to these claimants separately.
The settlement agreement between Centennial and the class action plaintiffs became effective on July 20, 1998. Since then, Centennial has been awaiting the final approval of submitted claims in order to issue these shares to the class action plaintiffs. As part of the settlement, the Company made an initial distribution on July 20, 1998 of 2,050,321 shares of Centennial stock to counsel who represent the claimants.
''We are obviously pleased to close this chapter on Centennial's past, and are excited by what we see ahead,'' said Donald R. Peck, Centennial's Secretary, Treasurer and General Counsel. ''Centennial has a new senior management team, a positive bottom line, no debt, a strong product line and many loyal and satisfied customers. Furthermore, the Company hopes to return its stock to an organized exchange after a shareholder vote on a proposed reverse stock split at its upcoming annual meeting.''
The distribution of shares in settlement of the class action litigation has no effect on the Company's reported net income. The effect of the final distribution of the settlement shares on the Company's reported earnings per share for fiscal year ended March 31, 1999 is as follows (all amounts in thousands, except per share data):
-0-
First Second Third Fourth Year
Quarter Quarter Quarter Quarter Ended
March 31,
1999
Net Income $ 99 $ 1,201 $ 573 $ 933 $ 2,806
Basic Earnings per share:
Weighted Average Shares
Outstanding
(as reported) 18,496 20,031 20,549 20,549 19,926
Earnings per share (as
reported) $ .01 $ .06 $ .03 $ .05 $ .14
Weighted Average Shares
Outstanding (with effect
of distribution) 18,496 23,606 25,334 25,334 23,255
Earnings per share (with
effect of distribution) $ .01 $ .05 $ .02 $ .04 $ .12
Diluted Earnings per share:
Weighted Average Shares
Outstanding
(as reported) 19,567 20,034 20,607 21,169 20,179
Earnings per share (as
reported) $ .01 $ .06 $ .03 $ .04 $ .14
Weighted Average Shares
Outstanding (with effect
of distribution) 19,567 23,609 25,391 25,953 23,508
Earnings per share (with
effect of distribution) $ .01 $ .05 $ .02 $ .04 $ .12
Centennial will incorporate these revised earnings per share figures in its Annual Report on Form 10-K for its fiscal year ended March 31, 1999, which the Company plans to file with the Securities and Exchange Commission on or about June 4, 1999. The Company will also revise its quarterly reports on Form 10-Q for the quarterly periods ended September 27, 1998 and December 26, 1998 to reflect the effect of this share distribution.
This press release contains forward-looking statements. The matters expressed in such statements are subject to numerous risks and uncertainties, including, without limitation, the ability of the Company to secure shareholder approval of its reverse stock split proposal, the ability of the Company to relist its stock on an organized exchange, the timing of the distribution of share certificates by the Company's transfer agent, and other risks identified in filings made by Centennial Technologies, Inc. with the Securities and Exchange Commission (the ''Commission'') including Centennial's Form 10-Q filed with the Commission on February 8, 1999 under the heading ''Risk Factors.''
Centennial Technologies, Inc. provides custom and industry standard PC Cards for original equipment manufacturers. Centennial is a global leader in the integration of patented and proprietary technology into application specific cards for commercial, industrial and military markets. The Company's headquarters and ISO 9001 certified engineering and manufacturing facility is located in the Boston, Massachusetts area, with sales and services offices in California, North Carolina, Indiana and Pennsylvania. The Company's international sales and service operations are headquartered in the United Kingdom. More information about Centennial can be obtained on the Company's website at cent-tech.com.
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Contact:
Centennial Technologies, Inc.
Donald R. Peck, (978) 988-8848
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