23 April 2002
23 April 2002
American Technology Corp. has signed a Letter of Intent to acquire San Diego-based HST Inc. HST designs and manufactures technologically advanced components for branded consumer products using space-age materials and proprietary production methods. HST's most significant new application of advanced materials and processing is Callaway Golf's latest Big Bertha C4(TM) compression cured carbon composite driver head. HST manufactures this tournament-winning driver head and the accompanying custom-designed carbon fiber golf shaft. HST uses advanced materials to develop and manufacture products including carbon fiber golf shafts for Callaway, Ping and others, as well as custom carbon fiber tubes for applications ranging from arrow shafts to vehicle drive shafts.
In announcing the planned acquisition, Elwood Norris, chairman and CEO of American Technology, said, ""This is a strategically important acquisition for our company. HST has successfully implemented high volume cost-effective manufacturing for our HyperSonic(R) Sound components and is similarly developing production for NeoPlanar components for OEMs and military customers. The synergy between our two companies is significant. Increasingly, our customers want in addition to a license, a manufactured component that can be more quickly integrated into their own sound solutions. The acquisition of HST will allow us to speed delivery of these higher margin solutions to our customers.""
Norris continued, ""The HST team members have a record of innovative high-tech manufacturing and strong customer relationships. They complement our technology team and are already contributing to the marketing of HSS and NeoPlanar components. HST reported unaudited revenues of greater than $11.4 million in the first calendar quarter with record profits (unaudited) exceeding 25 percent pre-tax. It is anticipated that upon closing, the combined company will generate significant positive operating cash flows and profits to finance future growth.""
Beck commented, ""We are very pleased to join American Technology with the goal of continuing to grow our business and contribute to the future success of HSS, NeoPlanar, PureBass(R) and other American Technology patented technologies. While we are pleased with HST's strong operating results, we are equally excited about the strategic dynamics created by this transaction.""
Beck added, ""We have worked closely with American Technology management, especially over the last year, to create economical component solutions for HSS and more recently NeoPlanar products. Industry leaders are already licensing American Technology's sound solutions and we believe we add even greater value through manufacturing and marketing innovations. We believe NeoPlanar has the opportunity to replace many existing speaker applications worldwide and at the same time deliver increased utility. We also see HSS opening new mass-market applications in directed sound. Working with American Technology's military customers, we have also been party to the excitement generated by a wide range of military uses for American Technology's sound products.""