Global Graphics to Sell Hardware Division to Management
Press release from the issuing company
March 1, 2002 -- Global Graphics has signed a letter of intent to sell its Hardware division to senior management headed up by Gary Jones, the division's COO. Jones resigned as a member of the Global Graphics board last week.
According to a statement released yesterday, Global Graphics will reduce its financial debt by approximately Euro 9.0 million of which approximately Euro 4.5 million is short-term bank debt. The sale allows the software division to pursue opportunities for growth in the middle market and PDF segments.
Johan Volckaerts, Global Graphics Chairman and CEO commented, "Although we have reduced the Hardware division's break-even point, on an earnings per share basis, to annual sales of Euro 50 million, the financial year 2001 saw a steep decline in demand for equipment from our OEM customers and we do not foresee any significant improvement for 2002. Therefore the Hardware division's ability to contribute to earnings per share remains a substantial financial risk for Global Graphics. Consequently we have taken up the option to sell the entire hardware division worldwide to its management to eliminate that risk and any further potential loss to the Company. In becoming a pure play software company we will fully unlock the real shareholder value of the company. Our Software division is seeing continued demand for its PDF products and its RIP technology in both existing market segments and in the fast growing print on demand, printer and digital copier segments. This move will allow Global Graphics to put its full resource and effort into these high growth areas which will undoubtedly result in new business and important new customer contracts, some of which we will be announcing in the coming months."
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