TE (Tyco Electronics) decides to divest the Touch group (Elo TouchSystems to most of us) for $380M. Estimated 2011 revenues were $411M for Elo. Purchased by the Gore Group which spent $1B (or so) on PEP Auto Stores. Interesting.
Results related to these businesses will be recast for prior periods and reported as discontinued operations on the Company's financial statements beginning with its fiscal second quarter ended March 30, 2012. The Company expects to recognize in discontinued operations an after-tax loss in its fiscal second quarter of approximately $20 million related to these divestitures.
Touch Solutions, which has been reported as part of TE's Communications and Industrial Solutions segment, is a supplier of touch screens, touch monitors and all-in-one touch computers under the Elo TouchSystems brand. The business generated sales of $413 million in fiscal 2011.
TPS, acquired as part of TE's acquisition of ADC in December 2010, has been reported in the Telecom Networks business of TE's Network Solutions segment. TPS is a provider of engineering, furnishing and installation services to communication service providers. TE reported sales of $121 million in fiscal 2011 for the TPS business.
FISCAL SECOND QUARTER OUTLOOK
The results of both businesses will be recast for prior periods and reported as discontinued operations on the Company's financial statements beginning with its fiscal second quarter ended March 30, 2012. The expected impact on the outlook for the second quarter is as follows:
($ in Millions, except per share amounts) |
Discontinued |
||
Outlook Issued |
Operations |
||
January 25, 2012 |
Impact |
Revised Outlook * | |
Q2 Sales |
$3,300 to $3,400 |
($150) |
$3,150 to $3,250 |
Q2 GAAP EPS |
$0.57 to $0.61 |
($0.02) |
$0.55 to $0.59 |
Q2 Adjusted EPS |
$0.64 to $0.68 |
($0.02) |
$0.62 to $0.66 |
* from Continuing Operations |
The Company will report results for its fiscal second quarter and provide an updated outlook for the fiscal third quarter and full year before trading begins on April 25, 2012.
Information about TE Connectivity's use of non-GAAP financial measures is described below.
ABOUT TE CONNECTIVITY
TE Connectivity is a global, $14
billion company that designs and manufactures approximately 500,000
products that connect and protect the flow of power and data inside the
products that touch every aspect of our lives. Our nearly 100,000
employees partner with customers in virtually every industry--from
consumer electronics, energy and healthcare, to automotive, aerospace
and communication networks--enabling smarter, faster, better technologies
to connect products to possibilities. Find more information about TE
Connectivity at http://www.te.com.