EMRISE hopes to dodge delisting on NYSE
Rancho Cucamonga-based EMRISE Corp. said on Thursday that its England subsidiary, Pascall Electronics Ltd, will purchase $2.2 million of in-flight aerospace entertainment devices.
The aerospace and defense electrical device manufacturer could probably use all the new orders it can get.
It's market capitalization -- now about $24 million -- has plunged since its 1992 stock price peaked at $11.25 a share, and the company has been facing a delisting on the New York Stock Exchange.
The stock (NYSE Arca: ERI) closed at 65 cents on Thursday.
In the face of recent losses, John Donovan, vice president of finance and administration, said he's optimistic about growth opportunities.
"We believe we're turning back to profitability soon," he said on Thursday.
EMRISE, which also has operations in France and Japan, reported a first-quarter loss of $900,000, mostly due to production and customer-related delays.
Before that, the company saw a total of $5.5 million in losses between 2006 and 2007 because of slower sales, among other reasons.
The company must increase stock value to stay listed on the exchange. It will ask shareholders -- many of them being investment firms -- to approve a reverse stock split later this year.
But even if shareholders approve the reverse split, it won't happen until EMRISE acquires Advanced Control Components, a New Jersey-based electronics device producer. An Aug. 15 date is projected for closing the deal while EMRISE gets environmental approval from New Jersey.
Donovan said most of the company's losses stem from accounting and attorney expenses put towards internal fraud investigations by the Securities Exchange Commission in 2006.
"We had to reaudit two years of financial statements," he said. "It cost us almost $2 million and depleted the company of its cash reserves."
--matthew.wrye@inlandnewspapers.com
Look below to read EMRISE's last few news releases:
| Press Release | Source: EMRISE Corporation |
EMRISE Corporation Receives New Orders in Excess of $2.2M for In-Flight Entertainment Products
Thursday June 26, 8:45 am ET
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--EMRISE CORPORATION (NYSE Arca:ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced it has received more than $2.2 million in new orders from a long-standing U.S. customer for in-Flight-Entertainment ("IFE") devices. EMRISE President and Chief Executive Officer Carmine T. Oliva said that the Company's in-flight entertainment businesses are a key driver of growth in 2008 and beyond.
"These new orders are indicative of the strength of the business we are receiving in 2008 from established customers for traditional IFE electronic devices," Oliva said. "Receipt of these new orders brings to $6.5 million the total mid-year 2008 orders for traditional and new multi-media in-flight entertainment and communication (IFE&C) products for new customers, which is 30% ahead of mid-year 2007 orders of $5.0 million."
These orders were received by the company's Pascall Electronics Ltd. ("Pascall") subsidiary located in England. Pascall provides a range of power systems, RF devices and integrated subsystems for traditional IFE and new generation multimedia IFE&C systems, including video on demand and GSM communications products for legacy, retrofit and new-build applications.
"These orders are yet another example of the type and value of the orders we continue to receive for in-flight entertainment products," Oliva added. "Sales of our products, which are integrated into in-flight entertainment systems, continue to grow rapidly."
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; RF and microwave transmission; digital and rotary switching; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include commercial avionic "In-Flight Entertainment and Communications" products and communications "Network Timing and Synchronization" equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England, France and Japan. The Company has built a worldwide base of customers including all of the Fortune 100 in the U.S. that do business in markets served by EMRISE and many similar-size companies in Europe and Asia. For more information go to www.emrise.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including without limitation EMRISE's ability to continue to receive orders from established customers for traditional IFE electronic devices, ability to continue to receive orders for IFE or IFE&C products at a faster rate than in 2007, ability for the IFE or IFE&C related sales to grow rapidly, and the ability to receive future multi million dollar orders for IFE or IFE&C products are all forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE CORPORATION could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues, changes in demand for IFE or IFE&C products, economic difficulties, particularly within but not limited to the airline industry, changes in customer time schedules for delivery of IFE or IFE&C products, competitive pressures, fluctuations in the exchange rate between the dollar and British pound, and unforeseen quality, manufacturing or performance issues associated with IFE or IFE&C products, and those factors contained in the "Risk Factors" Section of the Company's Form 10-K for the year ended December 31, 2007, and other Company filings.
Contact:
EMRISE Corporation John Donovan Vice President Finance and Administration 909-987-9220 ext. 3201 JDonovan@emrise.com or Allen & Caron Inc Dan Matsui, 949-474-4300 (investors) D.Matsui@allencaron.com Len Hall, 949-474-4300 (media) Len@allencaron.com
Source: EMRISE Corporation
Press Release
Source: EMRISE CORPORATION
EMRISE CORPORATION Announces Results of Annual Stockholders' Meeting
Wednesday June 25, 8:45 am ET
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--EMRISE CORPORATION (NYSE ARCA: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it held its annual meeting of stockholders on June 24, 2008, at its corporate offices in Rancho Cucamonga, California. A quorum of stockholders was present in person or by proxy.
The Company's stockholders approved the proposal to elect EMRISE President and Chief Executive Officer, Carmine T. Oliva, and Richard E. Mahmarian to serve three-year terms as Class III directors. The stockholders also approved the proposal to ratify the appointment of the Company's current independent registered public accountants, Hein & Associates LLP, to audit the Company's consolidated financial statements for 2008.
In his prepared remarks, Oliva reviewed the Company's financial results for 2007 and discussed management's plan for growth. He noted that organic growth in 2007 came from both the Company's core electronic devices and communications businesses driven by certain new products introduced during 2007 as primary growth drivers. He also pointed out that there were attractive opportunities for future growth in the U.S. military market for the Company's core base electronic devices.
Oliva then discussed management's strategy to focus on supplementing organic growth in the Company's core businesses by acquiring businesses that complement the Company's core strengths. He also noted that as part of the Company's overall strategy, the Company may sell certain businesses and/or product lines that are not part of the Company's overall core business. The sale of such businesses and/or product lines would streamline operations, would strengthen the Company's focus on core growth and would help to reduce the debt and interest expense related to the acquisition of Advanced Control Components. He pointed out that less debt and lower interest expense would reduce the Company's financial risk, would provide a much stronger balance sheet and would improve liquidity.
He mentioned key accomplishments in 2007, including recent successes with new products, the addition of new large customers for each of the Company's primary growth drivers, and the closing of a $23 million debt facility to support growth and continued development of new growth drivers, and to finance the acquisition of Advanced Control Components that was previously announced on May 28, 2008.
Oliva also announced that the Company would seek approval of its stockholders to effect a reverse split of its common stock at a special meeting of stockholders to be held late in the third quarter or early in the fourth quarter of this year and that the reverse stock split would be implemented only if the Company was successful in closing its acquisition of Advanced Control Components. "The purpose of the reverse stock split is to maintain the Company's listing on the NYSE Arca exchange and to reduce the total number of shares outstanding to a level more appropriate for a company our size," Oliva added. Oliva also stated the Company's belief that the reverse stock spilt would clear up concerns about delisting that have plagued the Company for the last seven months and potentially reduce any related pressure there may be on the Company's stock price due to the possibility of delisting and then trading of the common stock on the OTC Bulletin Board.
Oliva noted that the specific magnitude of the reverse split would depend upon market conditions, the current stock price at the time of the effectiveness of the reverse split and other factors. In that regard, he also noted that the Company intends to minimize the magnitude of the reverse split while achieving the objectives of the reverse split, including maintaining compliance with NYSE Arca continued listing requirements. Oliva stated that the Company had consulted with NYSE Arca regarding the reverse split and had obtained NYSE Arca's support. Finally, Oliva noted that the Company expects to maintain its current NYSE Arca listing throughout the period of time necessary to close the acquisition of Advanced Control Components and to obtain stockholder approval of the reverse stock split, subject to continuing normal NYSE Arca monitoring procedures.
A replay of the meeting, which was webcast live and accessible by teleconference, is available at www.emrise.com or www.investorcalendar.com/IC/CEPage.asp?ID=130830 for 90 days. Also, for 90 days after the conference call, a replay will be available by dialing the toll-free number 877-660-6853 and for international callers 201-612-7415. The conference ID number of "288062" and Account number of "286" should be used to access the recording by phone.
About EMRISE CORPORATION
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; RF and microwave transmission; digital and rotary switching; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include commercial avionic "In-Flight Entertainment and Communications" products and communications "Network Timing and Synchronization" equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England, France and Japan. The Company has built a worldwide base of customers including all of the Fortune 100 in the U.S. that do business in markets served by EMRISE and many similar-size companies in Europe and Asia. For more information go to www.emrise.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including without limitation EMRISE's ability to develop attractive opportunities for future growth in the U.S. military market for electronic devices, ability to acquire businesses that complement the Company's core strengths, ability to sell certain businesses and/or product lines that are not part of the Company's overall core business, ability to streamline operations, strengthen the Company's focus on core growth, ability to reduce the debt and interest expense related to the acquisition of Advanced Control Components, ability to finance the acquisition of Advanced Control Components, ability of the Company to successfully obtain approval of its stockholders to effect a reverse split of its common stock at a special meeting of stockholders, ability to successfully close its pending acquisition of Advanced Control Components, ability to maintain the Company's listing on the NYSE Arca exchange, ability to reduce the total number of shares outstanding to a level more appropriate for a company our size, ability to clear up concerns about delisting that have plagued the Company for the last seven months, ability to potentially reduce any related pressure there may be on the Company's stock price due to the possibility of delisting and then trading of the common stock on the OTC Bulletin Board, ability to minimize the magnitude of the reverse split while achieving the objectives of the reverse split, ability to maintain compliance with NYSE Arca continued listing requirements, and ability to maintain its current NYSE Arca listing throughout the period of time necessary to close the acquisition of Advanced Control Components are all forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE CORPORATION could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to failure to grow the business or capitalize on opportunities in the U.S. military market for electronic devices, unforeseen difficulties that prevent the Company from successfully acquiring businesses that complement the Company's core strength including but not limited to the inability to raise necessary financing, inability to find or successfully negotiate suitable transactions, unforeseen difficulties in selling certain businesses and/or product lines including but not limited to lack of interest from potential buyers, general economic conditions, differences in opinion regarding valuation of such assets, and/or delays in the negotiations of such transactions, failure to obtain all of the intended benefits from the sale of such assets including streamlining of remaining operations, failure to focus on core growth, failure to reduce debt or interest expense despite efforts to do so, failure to secure the required financing needed to complete the acquisition of ACC, failure to obtain the necessary votes from its stockholders to effect a reverse split of its common stock at a special meeting of stockholders, failure to close its pending acquisition of Advanced Control Components, failure to maintain the Company's listing on the NYSE Arca exchange, failure to reduce the total number of shares outstanding to a more appropriate level, failure to overcome concerns about possible delisting, failure to minimize the magnitude of the reverse split, failure to maintain compliance with NYSE Arca continued listing requirements, failure to maintain its current NYSE Arca listing throughout the period of time necessary to close the acquisition of Advanced Control Components, failure to obtain stockholder approval of the reverse stock split, and those factors contained in the "Risk Factors" Section of the Company's Form 10-K for the year ended December 31, 2007, and other Company filings with the U.S. Securities and Exchange Commission.
Contact:
EMRISE CORPORATION John Donovan, Vice President Finance and Administration 909-987-9220 ext. 3201 JDonovan@emrise.com or Allen & Caron Inc Dan Matsui, 949-474-4300 (investors) D.Matsui@allencaron.com Len Hall, 949-474-4300 (media) Len@allencaron.com
Source: EMRISE CORPORATION
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