EMS Technologies Inc. announced last week it has executed non-binding letters of intent with unnamed strategic buyers for its Space & Technology/Montreal and Satnet divisions and currently is engaged in due diligence processes.
“We are optimistic — although we cannot be certain until the processes are completed — that we will be successful in negotiating definitive sales agreements with the prospective buyers,” EMS President and CEO Alfred Hansen said in a statement. EMS Space & Technology/Montreal manufactures components and systems for the commercial space sector, including antennas, microwave components, power products and digital command and control products. Satnet develops equipment that supports two-way Internet communications via satellite.
The letters of intent were announced in EMS’ second quarter earnings report in which the company reported a net loss for $5.6 million for the fiscal 2006 second quarter, which ended July 2. EMS reported a net loss of $200,000 during the second quarter of the previous fiscal year. The company recognized a $10 million asset impairment charge related to the Space & Technology/Montreal assets held for sale, based on the terms of the letter of intent.
EMS’ earnings from continuing operations rose to $3.9 million during the fiscal 2006 second quarter, up from $1.8 million during the fiscal 2005 second quarter. The company said its Satcom product line of high-performance, high-speed terminals helped the division reach a quarterly sales record, spurred on by the executive jet market, along with demand for both military and commercial communications systems. Net sales for the Satcom division were $12.2 million in the just completed quarter, up from $9.5 million in the same period a year ago.
