Contact Information: APA Enterprises, Inc. Contact Information: Cheryl Beranek Podzimek President and CEO investor-relations@apaenterprises.com 763-476-6866
APA Enterprises, Inc. Reports Changes in Management and Operations
| Source: APA Enterprises, Inc.
MINNEAPOLIS, MN--(Marketwire - June 29, 2007) - APA Enterprises, Inc. (NASDAQ : APAT )
announced today that Dr. Anil K. Jain has resigned as Chairman of the
Board, President/Chief Executive Officer, and Chief Financial Officer of
the Company, effective immediately. Dr. Anil K. Jain, founder of APA,
served as President of the Company since its inception in 1979.
Mr. Ronald G. Roth, a major shareholder and board member since 2002, was
elected Chairman of the Board. Ms. Cheryl Beranek Podzimek, the President
of APACN, a subsidiary of the Company, has assumed the additional role of
President and CEO of the Company.
Following Dr. Jain's resignation, he purchased the Company's India
subsidiary, APA Optronics (India) Pvt. Ltd., on terms deemed by the
independent directors to be fair and reasonable to the Company. In brief,
the purchase price of $500,000 is payable over 5 years and is secured by
pledges of stock and Dr. Jain's payments under his separation agreement
with the Company, as well as a personal guaranty from Dr. Jain.
Concurrently, the Company made additional staff reductions. The total
expense of these reductions and the effect of Dr. Jain's severance
agreement is approximately $458,000. These amounts will be expensed in the
first quarter of fiscal year 2008. Dr. Jain's severance agreement will be
paid out over a two-year period.
These changes will result in a more focused application of resources to
APACN, the Company's principal business unit, including expansion of
APACN's global sourcing, reduction of overall cost of its products, and
enhancement of its marketing. APACN continues to strive to capture market
share with Broadband Service Providers, Fiber to the Premise marketplace
and in contract manufacturing environments.
Forward-looking statements contained herein are made pursuant to the safe
harbor provisions of the Private Litigation Reform Act of 1995. These
statements are based upon the Company's current expectations and judgments
about future developments in the Company's business. Certain important
factors could have a material impact on the Company's performance,
including, without limitation, delays in or increased costs of production,
delays in or lower than anticipated revenues of the Company's new products,
the Company's ability to sell such products at a profitable price, the
Company's ability to fund operations, and other factors discussed from time
to time in the Company's filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
forward-looking statements. The Company undertakes no obligation to update
such statements to reflect actual events.
APA Enterprises, Inc., consists of APA Cables and Networks Inc., a wholly
owned subsidiary, (APACN) and an Optronics division. APACN designs,
manufactures and markets a variety of fiber optic and copper components to
the data communication and telecommunication industries. The Optronics
business includes the development, design, manufacture and marketing of
ultraviolet (UV) detection and measurement devices for consumers and
industrial customers, and Gallium Nitride (GaN) based transistors for power
amplifiers and other commercial applications. Additional information about
APA Enterprises is available at http://www.apaenterprises.com.