Axsys sells fiber division; discontinues Automation Group
Rocky Hill, CT—Axsys Technologies Inc. announced Nov. 5 that it has sold substantially all assets of its fiber automation division to Palomar Technologies Inc. (Vista, CA). This division was part of Axsys' Automation Group, which the company reported on Oct. 23 that it plans to discontinue.
Rocky Hill, CT— Axsys Technologies Inc. Palomar Technologies Inc.
Palomar manufactures automated precision assembly systems for broadband communications. It intends to continue to operate the fiber automation business, and support all ongoing customer relationships.
Axsys says it decided to exit the photonics automation market to focus on its core opto-mechanical business. As a result, Axsys recorded approximately $2 million in losses related to disposition and other exit-related costs for 3Q02, which ended on Sept. 28. After-tax cash costs, following the addition of anticipated proceeds from this dissolution, are projected to be approximately $1 million over the next two years, and relate mainly to building lease obligations and legal costs.
Automation Group had after-tax operating losses of $814,000 in 3Q02 and combined losses of about $2.6 million for 2002’s first three quarters of 2002, compared to after tax operating losses of $334,000 and $1,281,000 respectively for the same periods in the prior year. These losses exclude all exit costs described above. As a discontinued operation, these results will be eliminated from Axsys’ financial results from continuing operations, which will be restated to reflect this change.
The firm says its opto-mechanical businesses have a strong presence in a broad array of aerospace, defense and commercial systems. Axsys provides opto-mechanical scanners, telescope assemblies, optics, precision structures and servo-magnetic devices for applications, such as missile seeker and fin actuation; satellite reconnaissance; thermal night vision and targeting systems;and biological detection systems built by U.S. and foreign defense contractors. Axsys also applies these technologies in commercial systems for medical imaging, semiconductor manufacturing and graphic arts laser recording systems produced worldwide.
Control Engineering Daily News Desk
Jim Montague, news editor