 |
Melville, New York, April
2, 2003 - Andrea Electronics Corporation (AMEX: AND) announced today
that it has entered into an agreement to sell its Aircraft Communications
Products division to a private investor group for $3.25 million,
subject to net receivables and inventory adjustments as of the balance
sheet closing date. The Aircraft Communications Products division
is engaged in the manufacture and sale of intercommunications systems
and amplifiers primarily used on legacy military aircraft. For the
year-ended December 31, 2002, this business segment generated approximately
$3.3 million in revenue, and total operating profit of approximately
$688 thousand. Pursuant to the terms of the purchase agreement,
the Company will receive $2.5 million in cash by the closing date,
which management expects will be on or about April 11, 2003. The
balance of the purchase price will be payable in equal installments
over the succeeding eleven month period.
"As previously stated,
we have been exploring various options to generate necessary working
capital to fund our Anti-Noise and DSP Microphone and Audio Software
products divisions," said Christopher P. Sauvigne, President
and Chief Executive Officer of Andrea Electronics. "We expect
the sale of this non-core business to enable Andrea to pursue existing
opportunities in the personal computer, video and audio conferencing,
telematics and call center communications markets."
As a result of this transaction,
and its effect upon the Company's ability to prepare information
necessary for its year end audit, Andrea Electronics filed a Form
12b-25 with the Securities and Exchange Commission, under Rule 12b-25,
a notification of late filing of the Company's Annual Report on
Form 10-K. The Company expects that the Annual Report on Form 10-K
will be filed within the permitted extension period. In addition,
the Company will conduct its fourth quarter and year-end conference
call on April 14, 2003 at 10:30 AM EST. Additional details regarding
the conference call will be released at a later time.
|
