EMS Technologies Receives Shareholder Letter
September 30 2010 - 1:40PM
Business Wire
EMS Technologies, Inc. (NASDAQ: ELMG) today acknowledged that it
had received a letter from a shareholder, MMI Investments L.P.
(“MMI”), expressing its views regarding potential strategic
alternatives for the Company.
EMS’s Chairman, John B. Mowell, stated, “The Board of Directors
values open dialogue and input from all our shareholders and we
intend to thoughtfully consider the matters raised by MMI. We
appreciate MMI’s comments regarding the strength and market
position of our businesses and its support for our ongoing
operational improvements, and we agree in particular with MMI’s
view that EMS is well positioned to benefit from expected future
growth in connectivity markets. We also believe that the future
success of the Company can be enhanced by potential synergies from
each of our businesses. The Board and management team are committed
to undertaking actions that will enhance value for all of our
shareholders, and we intend to consider MMI’s letter with that
principle in mind.”
About EMS Technologies, Inc.
EMS Technologies, Inc. (NASDAQ: ELMG) is a leading provider of
wireless connectivity solutions over satellite and terrestrial
networks. EMS keeps people and systems connected, wherever they are
— on land, at sea, in the air or in space. Serving the
aeronautical, asset tracking, security, defense, and mobile
computing industries, EMS products and services enable universal
mobility, visibility and intelligence. EMS has four operating
segments:
- Aviation supplies a broad array of
communications terminals and antennas that enable end-users in
aircraft and other mobile platforms to communicate over satellite
and air-to-ground links; connectivity products, including
aeronautical wi-fi communications and data storage, aeronautical
voice and tracking, and satellite-based machine-to-machine mobile
communications;
- Defense & Space supplies
highly-engineered subsystems for defense electronics and
sophisticated satellite applications – from military
communications, radar, surveillance and countermeasures to
commercial high-definition television, satellite radio, and live TV
for innovative airlines;
- Global Tracking supplies global
telematics, security, and force-tracking solutions, and is a
pioneer in search and rescue technology. These solutions are used
around the world to locate, track and communicate with cargo,
personnel and fleets, even in the world's most remote and hostile
places; and
- LXE is a leading provider of rugged
mobile computers and wireless data networks for automatic
identification and data capture. LXE’s products currently serve
mobile information users at over 7,500 sites worldwide, mainly in
distribution centers, warehouses and container ports.
Visit www.ems-t.com for more information.
Forward-Looking Statements
Statements contained in this press release regarding the
potential of the Company’s various businesses and products are
forward-looking statements. Actual results could differ materially
from those statements as a result of a wide variety of factors.
Such factors include, but are not limited to…
- economic conditions in the U.S. and
abroad and their effect on capital spending in our principal
markets;
- difficulty predicting the timing of
receipt of major customer orders, and the effect of customer timing
decisions on our results;
- our successful completion of
technological development programs and the effects of technology
that may be developed by, and patent rights that may be held or
obtained by, competitors;
- U.S. defense budget pressures on
near-term spending priorities;
- uncertainties inherent in the process
of converting contract awards into firm contractual orders in the
future;
- volatility of foreign currency exchange
rates relative to the U.S. dollar and their effect on purchasing
power by international customers, and on the cost structure of the
our operations outside the U.S., as well as the potential for
realizing foreign exchange gains and losses associated with assets
and liabilities denominated in foreign currencies;
- successful resolution of technical
problems, proposed scope changes, or proposed funding changes that
may be encountered on contracts;
- changes in our consolidated effective
income tax rate caused by the extent to which actual taxable
earnings in the U.S., Canada and other taxing jurisdictions may
vary from expected taxable earnings, changes in tax laws, including
the provisions of the U.S. tax law that have not been extended for
2010, such as the research and development credit, and the extent
to which deferred tax assets are considered realizable;
- successful transition of products from
development stages to an efficient manufacturing environment;
- changes in the rates at which our
products are returned for repair or replacement under
warranty;
- customer response to new products and
services, and general conditions in our target markets (such as
logistics and space-based communications) and whether these
responses and conditions develop according to our
expectations;
- the increased potential for asset
impairment charges as unfavorable economic or financial market
conditions or other developments might affect the estimated fair
value of one or more of our business units;
- the success of certain of our customers
in marketing our line of high-speed commercial airline
communications products as a complementary offering with their own
lines of avionics products;
- the continued availability of financing
for various mobile and high-speed data communications systems;
- risk that the unsettled conditions in
the credit markets may make it more difficult for some customers to
obtain financing and adversely affect their ability to pay, which
in turn could have an adverse impact on our business, operating
results and financial condition;
- development of successful working
relationships with local business and government personnel in
connection with distribution and manufacture of products in foreign
countries;
- the demand growth for various mobile
and high-speed data communications services;
- our ability to attract and retain
qualified senior management and other personnel, particularly those
with key technical skills;
- our ability to effectively integrate
our acquired businesses, products or technologies into our existing
businesses and products, and the risk that any such acquired
businesses, products or technologies do not perform as expected,
are subject to undisclosed or unanticipated liabilities, or are
otherwise dilutive to our earnings;
- the potential effects, on cash and
results of discontinued operations, of final resolution of
potential liabilities under warranties and representations that we
made, and obligations assumed by purchasers, in connection with our
dispositions of discontinued operations;
- the availability, capabilities and
performance of suppliers of basic materials, electronic components
and sophisticated subsystems on which we must rely in order to
perform according to contract requirements, or to introduce new
products on the desired schedule;
- uncertainties associated with U.S.
export controls and the export license process, which restrict our
ability to hold technical discussions with customers, suppliers and
internal engineering resources and can reduce our ability to obtain
sales from customers outside the U.S. or to perform contracts with
the desired level of efficiency or profitability; and
- our ability to maintain compliance with
the requirements of the Federal Aviation Administration and the
Federal Communications Commission, and with other government
regulations affecting our products and their production, service
and functioning.
Further information concerning relevant factors and risks are
identified under the caption "Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31, 2009.
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