Spectrum Control Inc., a designer and manufacturer of electronic control products and systems, announced that it has purchased certain land and manufacturing facilities in State College, PA. The property, which was acquired from Murata Electronics North America, consists of 53 acres of land and approximately 250,000 square feet of modern ceramic manufacturing facilities. The acquired facilities will become the design and manufacturing center for Spectrum Control's ceramic operations. The total cost of the purchase was $5.1 M.
Dick Southworth, Spectrum Control's president and chief executive officer, stated, "Our ceramic manufacturing facility in New Orleans was severely damaged by Hurricane Katrina, including impairment to the structural integrity of the building itself. Since the Hurricane, our assessment and recovery efforts have been severely hampered by poor working conditions, as electrical power and clean drinking water have yet to be restored to the area. To date, all usable equipment has been removed from the building and transferred to our newly-acquired facilities in State College. For all equipment which was damaged beyond repair, replacement equipment has been ordered and is expected to be received and placed into service during our first quarter of fiscal 2006. We anticipate pre-production volumes to begin at the State College facilities in February 2006, with full production during the third quarter of fiscal 2006."
Mr. Southworth continued, "Since Hurricane Katrina, our ceramic subcontractors have been very supportive in attempting to fulfill our ceramic needs and ramping up their production. Despite their cooperation and efforts, their overall volumes in the fourth quarter fell significantly short of our total needs. The resultant shortfall in our electromagnetic interference (EMI) product revenues, however, was substantially offset by strong shipments in our other businesses. Accordingly, our consolidated revenues for the fourth quarter of fiscal 2005 were approximately $25.4 M, down only two percent from the preceding quarter. New customer orders have been very strong, amounting to $31.7 M in the fourth quarter of fiscal 2005, up 27 percent from our third quarter levels. We expect to announce our complete fourth quarter and fiscal year 2005 results on January 12, 2006."