ROCKY HILL, Conn., July 9, 2007 (PRIME NEWSWIRE) -- Axsys Technologies, Inc. (Nasdaq:AXYS) today announced that it intends to sell its Distributed Products business, doing business as AST Bearings.
The company believes that the sale of this non-strategic business will allow management to focus on Axsys' increasingly prominent and faster growing optics business. Proceeds from the sale would be used to pay down Axsys' existing debt, leaving the company well-positioned to fund future investment initiatives. Axsys is currently holding discussions with several potential buyers.
"This is an important step forward for our company," said Stephen W. Bershad, Chairman and CEO of Axsys Technologies. "Upon completion of this sale, we will complete our transformation into a focused organization with a unified growth strategy."
Revised Fiscal 2007 Guidance
The company expects that the Distributed Products segment will be classified as a discontinued operation effective in the third quarter, and excluded from the company's operating results. As of today, the company's earnings guidance for fiscal 2007 will exclude AST's results for all of 2007. Axsys' previous 2007 guidance had been for revenues between $169 million and $172 million, net income between $11.8 million and $12.1 million, and earnings per share between $1.07 and $1.10. This guidance anticipated that the Distributed Products business would contribute $28.7 million in revenue, $1.3 million in net income, and $0.12 earnings per share in fiscal 2007.
The elimination of AST's results will be more than offset by stronger than expected performance in the Optical Systems Group, together with accretion from the recent acquisition of Cineflex Camera Systems.
Consequently, the company's revised 2007 guidance for its operations excluding AST is as follows:
* Revenue of between $159.0 million and $163.0 million * Net income of between $12.5 million and $12.8 million * Earnings Per Share of between $1.13 to $1.16
"I'm extremely pleased that we've been able to increase guidance by $0.06, despite a $0.12 elimination due to the expected sale of AST Bearings," continued Mr. Bershad. "Axsys will emerge from this sale as a well-positioned, focused company with a strong growth history and a very promising future."
Conference Call
Management will conduct a conference call to discuss the planned sale on Monday, July 9, 2007 at 10:00 a.m. E.T. Shareholders, institutional investors and equity research analysts are invited to participate in the call by dialing 1-866-277-1182 and entering conference passcode 80518813. The conference call will be webcast live via the Investor Relations section of the company's web site at www.axsys.com. A replay of the webcast will be available shortly after the conclusion of the call for a period of approximately 90 days.
About Axsys
Axsys Technologies, Inc. is a vertically integrated supplier of precision optical solutions for high technology applications, serving the aerospace, defense and high performance commercial markets. For more information, visit www.axsys.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as "expect," "anticipate," "plan," "may," "will," "estimate" or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys' reports on Form 10-K and Form 10-Q on file with the Securities and Exchange Commission, including without limitation: changes in the U.S. federal government spending priorities; the Company's ability to compete in the industries in which it operates, including the introduction of competing products or technologies by other companies and/or pricing pressures from competitors and/or customers; the potential for the Company's backlog to be reduced or cancelled; the Company's ability to implement its acquisition strategy and integrate its acquired companies successfully; the Company's ability to successfully complete the planned sale of the Distributed Products business, the Company's ability to manage costs under the Company's fixed-price contracts effectively; and changes in general economic and business conditions. These statements reflect the Company's current beliefs and are based upon information currently available to Axsys. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time, and we specifically disclaim any obligation to update these statements.