LANCASTER, Pa. , Nov. 11 /PRNewswire-FirstCall/ -- Herley Industries, Inc.
(Nasdaq: HRLY) today announced that it has sold its Innovative Concepts
subsidiary located in McLean, Virginia to Elbit Systems of America, LLC, which
is a wholly owned subsidiary of Elbit Systems Ltd. (Nasdaq: ESLT), of Haifa,
Israel , in a
Elbit Systems of America is a leading provider of high performance products and system solutions, focusing on the defense, homeland security, commercial aviation and medical instrumentation markets. With facilities throughout the United States , Elbit Systems of America is dedicated to supporting those who contribute daily to the safety and security of the United States .
Innovative Concepts is a communications technology development firm specializing in the research, design, development, production, and support of wireless data communications products and services. Myron Levy , Herley's Chairman and CEO noted, "While ICI is an excellent company, it is a better fit for Elbit, than for Herley, which is primarily a hardware company. Herley does have requirements for software development, but we believe that those requirements can be met through our other businesses. With the sale of ICI and the recently announced acquisition of Eyal Microwave by Herley's subsidiary, General Microwave Israel Corp. ("GMIC"), we are building on the core strengths of the Company and following our strategic plan to become the premier microwave supplier worldwide."
Mr. Levy continued, "ICI is a leading software developer of communication networking solutions, principally for the U.S. Army. By buying Eyal and selling ICI, we are redeploying the company's financial assets to strengthen the company. We have shifted many of the product lines from our Herley Farmingdale operation to Israel , and we are continuing our emphasis on international business. GMIC has historically been one of our most profitable divisions. With the acquisition of Eyal, it could be the Company's largest operation in terms of revenues and profits. With the integration of Eyal into GMIC we expect to see cost reductions and increased sales, which should drive the profit margins even higher."
Herley Industries, Inc. is a leader in the design, development and manufacture of microwave technology solutions for the defense, aerospace and medical industries worldwide. Based in Lancaster, PA , Herley has eight manufacturing locations and approximately 1000 employees. Additional information about the company can be found on the Internet at http://www.herley.com.
About Elbit Systems
Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The Company also focuses on the upgrading of existing military platforms and developing new technologies for defense, homeland security and commercial aviation applications.
Safe Harbor Statement - Except for the historical information contained herein, this release may contain forward-looking statements. Such statements are inherently subject to risks and uncertainties. When used in this report, words such as "anticipated," "believes," "could," "estimates," "expects," "may," "plans," "potential" and "intends" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the belief of the Company's management, as well as assumptions made by and information currently available to the Company's management. The Company's results could differ materially based on various factors, including, but not limited to, cancellation or deferral of customer orders, difficulties in the timely development of new products, difficulties in manufacturing, increased competitive pressures, and general economic conditions. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.