White Electronic Designs to concentrate solely on defense electronics market

By Lisa Kerner

Charlotte, N.C., Oct. 1 - White Electronic Designs Corp. said it will operate exclusively as a defense electronics manufacturer and supplier following the disposal of its display systems division.

The division is a Hillsboro, Ore., supplier of enhanced flat panel display systems, a White Electronic news release said.

In March, White Electronic moved its interface electronic division and its commercial microelectronic product lines into discontinued operations.

"The discontinuation of [the display systems division] completes our strategic plan to focus our operations in the defense electronics market," chief financial officer Roger Derse said in the release. "We believe we will now have a more efficient operating structure that will result in improved operating margins and financial performance."

Special committee formed

White Electronic's board announced additional details regarding its special committee formed in August. The committee is comprised of two of the company's independent directors, Paul Quadros and Thomas Toy.

Jefferies Quarterdeck, a division of Jefferies & Co., Inc., will assist in the review process, along with Wilson, Sonsini, Goodrich and Rosati.

Alternatives to be considered by the committee and its advisers could include White Electronic continuing as an independent public company or a sale or merger of the company.

According to White Electronic, it has no debt, positive cash flow and substantial cash reserves, giving it added flexibility when considering options.

On Sept. 29, White Electronic shareholder Wynnefield Capital, Inc. asked the company's board to provide specifics regarding its process to review strategic alternatives.

Wynnefield asked for the names of strategic review committee members, the committee's responsibilities and the identity of any financial advisers assisting the committee.

In addition, Wynnefield, a 5.7% shareholder, asked White Electronic to wait to select a new chief executive officer until the strategic review committee has publicly presented its recommendations, a Securities and Exchange Commission filing said.

White Electronic is a Phoenix-based manufacturer of microelectronic and display components and systems.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.