API Technologies Corporation, a prime contractor in sophisticated electronics, highly engineered systems, secure communications and electronic components and subsystems to the global defense and aerospace industries, on February 22 announced that it is closing its nanotechnology research and development subsidiary. Founded in 2000 and acquired by API in 2007, the NanoOpto subsidiary is located in Somerset, N.J. The company expects the shutdown process to be completed within the next 90 days and will contribute in excess of $4 million to operating earnings.
"This decision, while difficult, will significantly improve API's operating results and allow us to deploy our capital and management resources on our expanding profitable defense business," said Stephen B. Pudles, chief executive officer of API Technologies Corporation. "Together with our two recent successful acquisitions, API will now become a dedicated value-added subcontractor to the defense business and will be better able to serve the needs of our blue chip global customers."
The company will report this segment as discontinued on its financial statements and all prior periods will be revised to reflect a consistent accounting treatment.
About API Technologies Corporation
The company is a prime contractor in sophisticated electronics, highly engineered systems, secure communications and electronic components and subsystems to the global defense and aerospace industry. API Technologies' customers include the governments of the U.S., Canada, the United Kingdom, NATO and the European Union, as well as many of the leading Fortune 500 companies.