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EXHIBIT 99
For: Bowmar Instrument Corporation
5080 North 40th Street, Suite 475
Phoenix, Arizona 85018
Contact: Joseph G. Warren, Jr.
Bowmar Instrument Corporation
(602)957-0271
FOR IMMEDIATE RELEASE
BOWMAR INSTRUMENT CORPORATION
BOWMAR TO SELL DIVISION AND CLOSE CORPORATE OFFICE
NAMES NEW CEO
PHOENIX, ARIZONA--DECEMBER 18, 1997
Bowmar Instrument Corporation (ASE:BOM) announced today plans to seek a
buyer for its Technologies division. The Board of Directors determined that
focusing on the highly successful microelectronics business of its White
Microelectronics division was the best course of action for Bowmar and its
shareholders.
In addition, with but one location to manage, the need for the Corporate
office and the associated costs become redundant and will be eliminated. This
move alone is expected to save Bowmar approximately $800,000 per year, the full
effect of which will not be realized until fiscal 1999.
The decision to sell the Technologies division will result in a $1,300,000
pre-tax charge to earnings which, under accounting guidelines, must be
recognized in fiscal 1997. Therefore, the previously released earnings have
been restated to reflect the charge to earnings and to classify the
Technologies division's results as discontinued operations. The closure of the
Corporate office will result in a one-time charge of approximately $340,000,
which will be recognized in the first quarter of 1998.
The strategic repositioning of Bowmar to a pure microelectronics company
calls for leadership with expertise in that market. As such, Hamid Shokrgozar,
White Microelectronics division's current President, will assume the role of
President and CEO of Bowmar on January 2, 1998. Tom Lanin will remain with the
Company as a member of the Board of Directors.
Tom Lanin, President and CEO stated, "The actions taken at the
Technologies division over the past two years have strengthened the division and
have increased its attractiveness as an acquisition candidate. In fact, we have
received several unsolicited inquiries from parties interested in acquiring the
Technologies division. By focusing on White Microelectronics and reducing our
overhead, we can leverage the profitability of White Microelectronics."
Lanin continued, "Hamid, with his technical and marketing background is
uniquely suited to running this company. He has combined this experience with
enthusiastic and energetic leadership in profitably growing White
Microelectronics. I look forward to working with Hamid in my continuing role as
a Bowmar Board member."
Bowmar, which is headquartered in Phoenix, Arizona, manufactures and sells
microelectronic products with specific applications in the aerospace,
electronic, and computer industries.
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BOWMAR INSTRUMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands of dollars, except share data)
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Fourth Quarter of Fiscal Year Fiscal Year
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1997 1996 1997 1996
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Sales $ 5,824 $ 5,150 $ 22,189 $ 18,840
Cost of sales 3,451 3,071 13,169 11,002
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Gross margin 2,373 2,079 9,020 7,838
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Expenses:
Selling, general and
administrative 1,595 1,360 5,870 5,315
Product development 116 128 480 423
Interest expense 111 128 416 483
Other expense (income), net (Note 1) 420 (90) 135 (478)
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Total expenses 2,242 1,526 6,901 5,743
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Income from continuing operations
before income taxes 131 553 2,119 2,095
Provision (credit) for income taxes (94) 190 679 800
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INCOME FROM CONTINUING OPERATIONS 225 363 1,440 1,295
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Discontinued operations (Note 2)
Electromechanical segment
Loss from operations 1 128 (51) (9)
Provision (credit) for income taxes 0 (41) 16 4
Loss on disposition, net of deferred
income tax credit of $417 (883) (883)
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Net (loss) gain from discontinued operations (882) 87 (918) (5)
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NET INCOME (LOSS) $ (657) $ 450 $ 522 $ 1,290
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Net income per common share:
Continuing operations $ 0.02 $ 0.04 $ 0.16 $ 0.14
(Loss) gain on discontinued operations (0.14) 0.01 (0.14) 0
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NET INCOME PER SHARE, PRIMARY (NOTE 3) $ (0.12) $ 0.05 $ 0.02 $ 0.14
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NOTE: (1) Includes a $425,000 provision for the loss on the sale of the building
in Acton, Massachusetts.
(2) Reflects accounting for the electromechanical segment as discontinued
operations, including a provision of $600,000 for operating losses
during the phase-out period, as a result of the decision in December
1997 to sell this division.
(3) Fully diluted net income per share is considered to be the same as
primary net income per share since the effect of the potentially
dilutive preferred stock is currently antidilutive.