Herley Industries, Inc. Sells Innovative Concepts, Inc. ('ICI')
November 11 2008 - 7:00AM
PR Newswire (US)
Herley Divests Software Division to Elbit Systems of America LLC
LANCASTER, Pa., Nov. 11 /PRNewswire-FirstCall/ -- Herley
Industries, Inc. (NASDAQ:HRLY) today announced that it has sold its
Innovative Concepts subsidiary located in McLean, Virginia to Elbit
Systems of America, LLC, which is a wholly owned subsidiary of
Elbit Systems Ltd. (NASDAQ:ESLT), of Haifa, Israel, in a $15
million all cash transaction. Elbit Systems of America is a leading
provider of high performance products and system solutions,
focusing on the defense, homeland security, commercial aviation and
medical instrumentation markets. With facilities throughout the
United States, Elbit Systems of America is dedicated to supporting
those who contribute daily to the safety and security of the United
States. Innovative Concepts is a communications technology
development firm specializing in the research, design, development,
production, and support of wireless data communications products
and services. Myron Levy, Herley's Chairman and CEO noted, "While
ICI is an excellent company, it is a better fit for Elbit, than for
Herley, which is primarily a hardware company. Herley does have
requirements for software development, but we believe that those
requirements can be met through our other businesses. With the sale
of ICI and the recently announced acquisition of Eyal Microwave by
Herley's subsidiary, General Microwave Israel Corp. ("GMIC"), we
are building on the core strengths of the Company and following our
strategic plan to become the premier microwave supplier worldwide."
Mr. Levy continued, "ICI is a leading software developer of
communication networking solutions, principally for the U.S. Army.
By buying Eyal and selling ICI, we are redeploying the company's
financial assets to strengthen the company. We have shifted many of
the product lines from our Herley Farmingdale operation to Israel,
and we are continuing our emphasis on international business. GMIC
has historically been one of our most profitable divisions. With
the acquisition of Eyal, it could be the Company's largest
operation in terms of revenues and profits. With the integration of
Eyal into GMIC we expect to see cost reductions and increased
sales, which should drive the profit margins even higher." Herley
Industries, Inc. is a leader in the design, development and
manufacture of microwave technology solutions for the defense,
aerospace and medical industries worldwide. Based in Lancaster, PA,
Herley has eight manufacturing locations and approximately 1000
employees. Additional information about the company can be found on
the Internet at http://www.herley.com/. About Elbit Systems Elbit
Systems Ltd. is an international defense electronics company
engaged in a wide range of defense-related programs throughout the
world. The Company, which includes Elbit Systems and its
subsidiaries, operates in the areas of aerospace, land and naval
systems, command, control, communications, computers, intelligence
surveillance and reconnaissance ("C4ISR"), unmanned air vehicle
(UAV) systems, advanced electro-optics, electro-optic space
systems, EW suites, airborne warning systems, ELINT systems, data
links and military communications systems and radios. The Company
also focuses on the upgrading of existing military platforms and
developing new technologies for defense, homeland security and
commercial aviation applications. Safe Harbor Statement - Except
for the historical information contained herein, this release may
contain forward-looking statements. Such statements are inherently
subject to risks and uncertainties. When used in this report, words
such as "anticipated," "believes," "could," "estimates," "expects,"
"may," "plans," "potential" and "intends" and similar expressions,
as they relate to the Company or its management, identify
forward-looking statements. Such forward-looking statements are
based on the belief of the Company's management, as well as
assumptions made by and information currently available to the
Company's management. The Company's results could differ materially
based on various factors, including, but not limited to,
cancellation or deferral of customer orders, difficulties in the
timely development of new products, difficulties in manufacturing,
increased competitive pressures, and general economic conditions.
The Company undertakes no obligation to update forward-looking
statements as a result of future events or developments. For
information at Herley contact: Tel: (717)735-8117 Peg Guzzetti
http://www.herley.com/ Investor Relations DATASOURCE: Herley
Industries, Inc. CONTACT: Peg Guzzetti, Investor Relations of
Herley Industries, Inc., +1-717-735-8117 Web site:
http://www.herley.com/
Copyright
Elbit Systems (NASDAQ:ESLT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Elbit Systems (NASDAQ:ESLT)
Historical Stock Chart
From Jul 2023 to Jul 2024