ATLANTA, May 31, 2011 (GLOBE NEWSWIRE) -- Video Display Corporation, a leading international designer, manufacturer and supplier of specialty niche market displays for defense, medical, commercial and industrial applications, (Nasdaq:VIDE) today announced the finalization of the previously announced intention to sell the Company's Fox International Ltd subsidiary. The conditions of closing were based upon an effective date of March 1, 2011 to coincide with the audited fiscal February 28, 2011 year end.
The Company reported a gross purchase and sale price of $6,408,589 based upon the February 28, 2011 audit results of Fox International's book value of assets. Payment of the purchase price was comprised of a combination of cash, assumption of Fox's book value of liabilities and the tender of common shares of Video Display Corporation. As part of the transaction, Ron Ordway, the Company's chief executive officer, has surrendered 400,000 shares of Video Display common shares which will be added to the treasury shares of the Company. The total number of outstanding shares of the Company has been reduced from approximately 8.4 million shares to approximately 7.6 million shares outstanding as a result of the Fox International sale.
According to a Company spokesperson, the sale of the Fox International subsidiary will be immediately and significantly accretive to the Company's quarterly and annual financial results. Additionally, the sale is a major step in the Company's progression from a consumer product manufacturing and distribution company to an internationally recognized factor in the design, manufacturing and supply of display and display systems for military, medical, commercial and industrial applications.
About Video Display Corporation
Video Display Corporation designs, develops and manufactures unique solutions for display requirements for military, medical and industrial use with emphasis on high end training and simulation applications. Its product offerings include rugged AMLCD and CRT displays as well as complete projection systems utilizing VDC's Marquee™ line of projectors. Video Display Corporation operates 8 display design and manufacturing plants plus additional sales facilities throughout the United States and Europe.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Video Display Corporation or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but are not limited to, various filings made by the Company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the Company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions, including items discussed in the Company's Form 10-K for the year ended February 28, 2011, filed with the Securities and Exchange Commission. The Company undertakes no duty to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Ronald D. Ordway, Chairman and CEO 770-938-2080