Date: Fri, 21 Nov 1997 01:20:32 GMT Server: NCSA/1.5.1 Last-modified: Wed, 05 Nov 1997 00:01:54 GMT Content-type: text/html Content-length: 3556
CONTACT: | Lynn O'Mara | ||
Irvine Sensors Corporation | |||
714-444-8718 | |||
lomara@irvine-sensors.com |
FOR IMMEDIATE RELEASE
COSTA MESA, CALIFORNIA -- November 4, 1997 -- Irvine Sensors Corporation (NASDAQ: IRSN, Boston Stock Exchange: ISCB) announced today that it has completed disposition of the cubing line purchased from IBM. Approximately $1.1 million in proceeds were received from the sale of equipment on the line, with the proceeds being used to reduce the principal of a secured loan collateralized by the equipment. Irvine Sensors has now terminated its lease on the IBM premises and vacated the site.
"As we indicated previously, closure of the IBM-based facility in Vermont is a critical element of our plan to improve our financial results," said James D. Evert, President and Chief Executive Officer. "We have now successfully passed that milestone and are consolidating manufacturing of stacked memory devices in our California operation. This transition will result in a one-time write-down of nearly $6 million in our just-completed fiscal year, plus we still have to negotiate the retirement or restructuring of a little over $1.5 million in residual debt. However, we can address those issues and our future without the overhang of the large depreciation and fixed operating expenses we have experienced in the last several years."
Irvine Sensors (www.irvine-sensors.com), headquartered in Costa Mesa, California, is primarily engaged in the development and production of high density electronics, image processing and sensing devices, microsensors and low power integrated circuits which are intended to have broad applications in military and commercial systems.
Except for historical information contained herein,
the matters set forth in this news release are forward-looking
statements that are dependent on risks and uncertainties including
such factors, among others, as the Company's ability to transfer
technologies in a cost-effective and timely manner and the pace
at which new markets develop. Further information on Irvine Sensors
Corporation is contained in publicly-filed disclosures available
through the SEC's EDGAR database (www.sec.gov)
or from the Company's Investor Relations.