Communications Systems, Inc., Subsidiary Suttle, Inc. Sells its FutureLink™ Fiber Business Line to PPC Broadband
MINNETONKA, Minn.–(BUSINESS WIRE)–Communications Systems, Inc. (NASDAQ: JCS) (“CSI” or the “Company”), a international company of corporation network infrastructure, voice and statistics verbal exchange services and products for deployments and control of IT networks, today introduced that its absolutely-owned subsidiary Suttle, Inc. (“Suttle”) has bought its FutureLinkTM Fiber business line, inclusive of inventory and purchaser relationships, to PPC Broadband Inc. (“PPC”), the main company of high best, end-to-cease signal transmission solutions for assignment-crucial programs.
“As previously introduced, we are transferring CSI’s corporate awareness towards answers for IoT and community edge management,” stated Roger H.D. Lacey, CSI’s Chief Executive Officer. “We consider that the sale of Suttle’s FutureLinkTM product line advances us closer to that purpose and alerts our commitment to an organizational transformation designed to permit CSI to return to operating profitability in 2019.”
The transaction becomes structured as an Asset Purchase Agreement with a simultaneous signing and remaining on April 5, 2019. The sale rate became $five.0 million coins and the proceeds may be used for trendy company functions. Concurrent with the last of the transaction, Suttle and PPC entered into a Transition Services Agreement under which Suttle will hold to fabricate merchandise related to the FutureLinkTM Fiber enterprise line till September 30, 2019, to make sure seamless supply to the customer base. Suttle and PPC intend to paintings with Suttle’s existing suppliers and clients to make sure endured delivery and support of all FutureLinkTM Fiber products.
“The FutureLinkTM suite of fiber solutions are demonstrated dependable, bendy and dependable,” persisted Mr. Lacey. “However, those products are not strategically giant to our enterprise model. The stability of Suttle’s issue and answers business, comprised mainly of the MediaMAXTM product line, will preserve to aid key Tier, 1 customer.”
Mr. Lacey mentioned that CSI maintains to evaluate numerous proposals related to the continued enterprise-extensive restructuring method, such as the previously announced pondered sale of its company headquarters, new product development, and centered product clarification. Results from those projects will be disclosed as they turn out to be material.
CSI’s efforts are supported by a balance sheet at December 31, 2018, which blanketed coins, coins equivalents, and investments of $eleven.1 million, working capital of $30.7 million, 0 debt, and shareholders’ fairness of $41.7 million.
Northland Capital Markets served as a monetary marketing consultant to Suttle and CSI in reference to the transaction. Ballard Spahr LLP served acted as legal suggest to Suttle, Inc. And Communications Systems, Inc. Lewis Rice LLC served as prison suggest to PPC.
Communications Systems, Inc. Will offer extra data about Suttle’s sale of the FutureLinkTM Fiber enterprise in a Form eight-K with the intention to be filed with the Securities and Exchange Commission on or earlier than April eleven, 2019.
About Communications Systems
Communications Systems, Inc. Offers connectivity infrastructure and services for worldwide deployments of broadband networks. Focusing on revolutionary, fee-effective answers, CSI affords clients the capability to deliver, control, and optimize their broadband community offerings and structure. From the combination of fiber optics in any utility and surroundings to green home voice and information deployments to the optimization of facts and application get entry to, CSI gives equipment for max usage of the community from the edge to the person. With partners and clients in over 50 nations, CSI has constructed a popularity as a dependable global innovator focusing on first-class and customer service.
This press launch includes positive forward-searching statements inside the which means of the Private Securities Litigation Reform Act of 1995, inclusive of statements concerning future financial overall performance, destiny increase, and destiny acquisitions. These statements are based on Communications Systems’ cutting-edge expectancies or ideals and are subject to uncertainty and adjustments in occasions. Actual results may additionally range materially from those expressed or implied with the aid of the statements here due to modifications in monetary, business, aggressive or regulatory elements, and other dangers and uncertainties affecting the operation of Communications Systems’ business. These risks, uncertainties, and contingencies are supplied in the Company’s Annual Report on Form 10-K and, from time to time, within the Company’s other filings with the Securities and Exchange Commission. The records set forth herein should be studied in light of such dangers. Further, investors must remember that the Company’s monetary consequences in any precise period may not be indicative of future outcomes. Communications Systems is under no responsibility to, and expressly disclaims any duty to, update or modify its forward-looking statements, whether as an end result of recent facts, future occasions, adjustments in assumptions or in any other case.