Alpha Technologies Acquires 350,000 Shares of Its Common Stock
2 November 1999
Alpha Technologies Group Inc. Acquires 350,000 Shares of Its Common Stock From Former Owners of Its Lockhart Subsidiary
SOUTH PASADENA, Calif.--Nov. 1, 1999--Alpha Technologies Group Inc. announced today that on October 29, 1999, pursuant to a Stock Purchase Agreement, the Company acquired 350,000 shares of its common stock from the former owners of its Lockhart subsidiary for $1,476,096. The acquired shares were issued as consideration for the purchase of the Lockhart subsidiary which was purchased by the Company in August 1996. As part of the Agreement, the Company released the former owners from the indemnification provisions related to the purchase of the Lockhart business. The source of funds to acquire the stock was the Company's revolving line of credit.In addition, the Company announced that it had purchased, through transactions in the open market during October 1999, 35,800 shares of its common stock for an aggregate purchase price of $161,011.37, an average price of $4.50 per share. These shares were purchased pursuant to a resolution by the board of directors authorizing the chief executive officer to effect repurchases of the Company's common stock up to $500,000.
Lawrence Butler, chairman and chief executive officer of Alpha, said, "During fiscal 1999, we have improved our balance sheet and reported sequential improvement in quarterly earnings. Earnings per share increased from $.07 in the first quarter to $.12 in the second quarter and $.17 in the third quarter. These results, and the expectation of improved earnings in the future, have put us in a position to be able to take advantage of this opportunity to repurchase these shares at what we believe to be an attractive price. We believe that these transactions will be accretive to our earnings per share in fiscal 2000."
After the repurchases described above, 6,564,654 shares of Alpha stock remain issued and outstanding.
Alpha Technologies Group Inc. designs, manufactures and sells thermal management products, electronic connectors, and custom-designed electronic subsystems. The Company's thermal management products, principally heat sinks that dissipate unwanted heat generated by electronic components, serve the microprocessor, computer, consumer electronics, transportation and other industries. Its connector products serve a variety of industries including aerospace, automotive, communications, and defense. Its custom-designed subsystems are used by military, telecommunications and commercial customers.
For additional information, see Alpha Technologies Group Inc.'s Web site at http://alphatgi.com.
In conjunction with the provisions of the new "Safe Harbor" section of the Private Securities Litigation Reform Act of 1995, this press release may contain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors which could affect Alpha Technologies Group Inc. are included in the company's Form 10Q and Form 10K filed with the Securities and Exchange Commission.