Planar Systems, a worldwide leader in specialty display solutions, today announced the divestment of its electroluminescent (EL) display business to Beneq Oy. Beneq is a supplier of production and research equipment for advanced thin film coatings. The business sold for a purchase price of $6.5 million, $3.9 million of which was paid in cash at closing and $2.6 million was paid in the form of a promissory note. The transaction terms also provide for up to $3.5 million in possible additional cash consideration which can be earned in calendar years 2013, 2014, and 2015 based upon the EL business achieving certain financial results.
“The sale of our EL business to Beneq represents an important milestone in the execution of our strategic plan,” said Gerry Perkel, president and CEO of Planar. “We were able to add cash to our balance sheet and are now able to focus more of our attention and resources on our digital signage and interactive display product lines. In addition, we believe EL customers and employees will benefit from having the EL business now under the direction of a recognized leader in the use of atomic layer deposition (ALD) technology, a critical component of EL display production.” The Company will be working with Beneq after the closing to ensure customers are fully supported in the transition.
As a result of the sale, Planar is updating its forward looking estimates for the first quarter of fiscal 2013. The projected revenue ranges from $41 to $44 million with a projected Non-GAAP loss of $0.05 to a Non-GAAP profit of $0.01 in the first quarter of 2013, excluding the gain or loss recorded on the sale of the EL business.
Planar Systems, founded in 1983, is a global leader in digital display technology, providing premier solutions for the world’s most demanding environments. Planar solutions are used by the world’s leading organizations in applications ranging from digital signage to simulation and from interactive kiosks to large-scale data visualization. The wide variety of users include retailers, educational institutions, government agencies, businesses, utilities and energy firms, and home theater enthusiasts. Consumers of Planar products expect the company to provide superior performance when image experience is of the highest importance.
For more information, visit www.planar.com
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