SAN DIEGO, July 2 -- JMAR Technologies Inc. has sold JMAR Precision Systems Inc. (JPSI), the company's precision equipment business, to a group of private investors. For JMAR, a developer of advanced lasers, collimated plasma lithography (CPL) systems and a provider of semiconductor production services, this completes the restructuring plan it announced in February.
JMAR received $500,000 in a combination of cash and promissory notes for JPSI, and all JPSI receivables (approximately $420,000) as of the closing were assigned to JMAR. The notes are secured by the assets of JPSI. The buyer assumed 14 of the remaining 25 months of the existing lease on the 25,000 square-foot JPSI facility. JMAR agreed to pay all trade and employee-related liabilities as of the closing, approximately $385,000. The buyer has assumed all other ongoing commitments of JPSI.
Ronald A. Walrod, JMAR's president and CEO, said, "Completing this sale accomplished a key element of our previously announced restructuring and frees up management to focus on our new integrated business model."
"This divestiture has eliminated what had for some time been a significant drain on JMAR's financial resources," said Dennis E. Valentine, JMAR's CFO. "While our second and third quarter financial results will reflect the operating losses of this division through the closing of this sale, the negative impact of JPSI on JMAR's earnings and cash flow will now stop. Based on the terms of this transaction, we do not expect to record a significant gain or loss in our remaining investment in JPSI."
The company said the extended slow-down in the semiconductor equipment industry resulted in losses at JPSI and its decision to sell the subsidiary.
Based in San Diego, JMAR's operations include its laser and laser-produced Plasma Research Division in San Diego, its Systems Division in Burlington, Vt., where CPL stepper systems and other products are designed and manufactured; and its Microelectronics Division, based in Sacramento, which provides process integration and maintenance support for the US government's defense microelectronics activity semiconductor fabrication facility.
For more information, visit: www.jmar.com