Friday , May 14 2021

The CEO of the black box says the sale is waiting "positively received" by sellers, customers

Black Box CEO Joel Trammell told investors the response to the news about the acquisition agreed by the company by the Singapore branch of AGC Networks, which was received positively by employees, suppliers and customers.

"We all thought it was absolutely correct for the company and its shareholders," said Trammell during a payday call on Friday. "I expected that this announcement would be a relief for those who are worried about our uncertainty, especially the December expiration date of our credit line announced in July. I was surprised, however, by the extent to which this news was received positively by customers, team members, suppliers' partners and other electoral groups. "

Black Box announced on Sunday that it had agreed to be acquired for $ 16.4 million by an affiliate of AGC Networks based in India. According to the terms of the agreement, AGC would buy all negative shares of the Black Box for $ 1,08, 21 cents more than the stock closure price on Friday before the sale was announced.

Trammell – who has been the CEO of the company since November 2017 – said that although the results of earnings for the last quarter ended September 29 were "modest", the employees were well-informed given the "numerous distractions" they faced at work .

"Although these results are modest on their faces, I am very pleased with them taking into account the many distractions and challenges that our team members faced every day since the announcement" in progress "last July," said Trammell. "Our team members, day after day, found paths around the obstacles to make sure our clients continue to receive the high level of products and services that were associated with the name of the Black Box in the last 42 years."

Revenue from the quarter was $ 5.8 million to $ 158.7 million, down 3.5% from the same quarter last year. This was due to a decline in the business of the company's products in North America. The company recorded a net profit of $ 22.9 million for the quarter for a benefit per share of $ 1.50.

Black Box shares remained constant at $ 1.07 today after the call.

This is the fourth consecutive quarter of the company. May 2015 is the last time Black Box released a quarterly revenue growth when it announced a 3 percent increase in sales of $ 245.1 million.

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