Cantronic Announces Close of Actiontop Electronics Acquisition
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2010) - Cantronic Systems Inc. (TSX VENTURE:CTS) ("Cantronic" or the "Company") today announced that it has completed the acquisition of Actiontop Electronics, a privately-owned manufacturer of high-speed video surveillance cameras and related products.
"Acquiring Actiontop Electronics is one of our most strategic developments to date," said James Zahn, President and CEO of Cantronic. "It effectively positions us for continued growth and increased market share as a result of a newly expanded suite of security and surveillance systems offerings."
As announced previously, the transaction is valued at C$3.4 million or approximately RMB 23 million, and funded by a combination of cash and Cantronic shares.
Actiontop Electronics has a track record of profitability. Cantronic expects that the acquisition will be immediately accretive to its earnings. The Company expects that Actiontop will generate revenue in fiscal 2010 in the range of RMB 30 million to RMB 31 million or between C$4.6 million and C$4.8 million, with estimated net margin in the range of 15% to 20%.
About Actiontop Electronics
Actiontop Electronics was established in 1999 and has factory facilities in Shenzhen, China. Actiontop engages in the design, manufacturing, sales and support of high-speed video surveillance camera products, including a variety of domes and zoom lenses, vandal-proof cameras, controllers, matrices and other accessories. Actiontop manufactures its products in its facility located in Shenzhen, China. Actiontop has an established customer base in China and generates approximately 60% of sales internationally through distributors and OEM agreements. For more information on Actiontop Electronics, please visit [ www.actiontop.cn/en ].
About Cantronic Systems Inc.
Cantronic Systems Inc. manufactures, distributes, and provides training and services in the fields of infrared vision and video security surveillance technologies, specializing in passive and active infrared cameras, infrared illuminators, low light infrared sensitive CCD cameras and long-range night vision surveillance systems for demanding homeland security and surveillance application.
Cantronic, through its US subsidiary QWIP Technologies, Inc. ("QWIPTECH"), holds a worldwide, exclusive license from the California Institute of Technology ("Caltech") to produce and sell infrared detectors and sensors based on Caltech's Quantum Well Infrared Photodetector technology.
Cantronic, through its China subsidiaries Cantronic Security Systems (China) Co. Ltd., Beijing Advanced Videoinfo Technology Co. Ltd. ("AVINFO") and Shenzhen Huanghe Digital Technology Co. Ltd. ("Yellow River"), provides digital networked video surveillance solutions to government and corporate customers in China.
Cantronic is a Tier 1 issuer on the TSX-V exchange, trading under the symbol CTS. For further information about Cantronic and QWIPTECH, please visit our websites at [ www.cantronics.com ] and [ www.qwip.com ].
Follow Cantronic Systems on Twitter at [ http://twitter.com/Cantronic ].
Forward-looking statements
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Cantronic Systems Inc. and the markets in which it operates. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Cantronic to be materially different from any future results, performance or achievements expressed or implied by said forward-looking statements.
Forward-looking statements include, but are not limited to: the completion of the Proposed Transaction, anticipated share capital following completion of the Proposed Transaction, expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this news release, and Cantronic Systems Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.