Giga-tronics Announces the Sale of its Switch Product Line to Astronics for $850,000
June 23 2016 - 4:02PM
Giga-tronics Incorporated (“Giga-tronics”) (NASDAQ:GIGA) announced
today an agreement for the sale of its Switch product line to
Astronics Test Systems Inc. (“Astronics”), a wholly owned
subsidiary of Astronics Corporation (NASDAQ:ATRO). Upon signing,
Astronics paid $850,000 for the intellectual property of the
product line. Giga-tronics is estimating a net gain in the quarter
ending June 25, 2016 of $650,000 after related expenses are
subtracted from the sales price. Astronics is also purchasing
approximately $500,000 of related materials inventory from
Giga-tronics. The materials inventory will transfer throughout July
and August of 2016.
John Regazzi, President and CEO of Giga-tronics,
said, “The sale of the Switch product line was the last of our
legacy products we were still producing and supporting. The
sale allows Giga-tronics to realign business processes and focus
all of our attention on our high growth opportunities in Electronic
Warfare systems.”
Giga-tronics is a publicly held company, traded
on the NASDAQ Capital Market under the symbol "GIGA".
Giga-tronics produces instruments, subsystems and
sophisticated microwave components that have broad applications in
defense electronics and aeronautics.
This press release contains forward-looking
statements concerning operating results, future growth, and sales
of new products, shippable backlog within a year, long term growth,
shipments, product line sales, and customer acceptance of new
products. Actual results may differ significantly due to risks
and uncertainties, such as: delays in customer orders for the new
Advanced Signal Generation System and our ability to manufacture
it; receipt or timing of future orders, cancellations or deferrals
of existing or future orders; our need for additional financing;
the volatility in the market price of our common stock; and general
market conditions. For further discussion, see Giga-tronics'
most recent annual report on Form 10-K for the fiscal year ended
March 26, 2016 Part I, under the heading "Risk Factors" and Part
II, under the heading "Management's Discussion and Analysis of
Financial Condition and Results of Operations".
Contact: Steven D. Lance
Vice President of Finance/Chief Financial Officer
slance@gigatronics.com
(925) 302-1056
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