EMRISE Corporation Announces 2010 Second
Quarter and Six-Month Financial Results
August 16, 2010 04:58 PM Eastern Daylight Time
EATONTOWN, N.J.--(EON: Enhanced Online News)--EMRISE CORPORATION, (NYSE Arca: ERI), a
multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment,
today announced its financial results for its second quarter and six months ended June 30, 2010.
EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said the focus of executive management in the
second quarter of this year was to continue to deliver on its commitment to significantly reduce, through the sale of
assets, the Company’s outstanding debt with its primary lender and its deferred purchase obligations associated with
its subsidiary, Advanced Control Components, Inc. (“ACC”). As of June 30,2010, the Company’s total debt
obligations under its credit agreement, as amended, with its primary lender, (the “Credit Agreement”), and the former
ACC shareholders was approximately $17.6 million.
“We reached a major milestone on our commitment to significantly reduce our debt in early June 2010 when we
signed a purchase agreement to sell our ACC subsidiary to Aeroflex Incorporated,” Oliva said. “Closing the
transaction pursuant to that purchase agreement, which was binding through July 31, 2010 and became terminable
by either party after that date, will provide us the means to eliminate all but $3.8 million of the outstanding obligations
to our primary lender and to the former ACC shareholders. In addition, EMRISE will retain the residual cash from
the ACC transaction, after fees and transaction expenses, for working capital purposes.
“Pending approval by our stockholders at our upcoming Annual Meeting on August 30, 2010, and the timely and
successful close of the ACC sale, we are now on the threshold of a major strategic opportunity that will help shape
the future of the Company,” Oliva added. “Closing this transaction will help us establish a foundation fr