DURHAM, N.C., July 3, 2012 /PRNewswire/ -- EMRISE CORPORATION (OTCBB: EMRI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, announced today that on June 29, 2012, the Company made a $225,000 payment on its note with GVEC Resource IV Inc. and Private Equity Management Group LLC (PEM), its former primary lender in the U.S. As a result of the payment, EMRISE paid off the note eight months early and received a discount of $275,000 as called for in the amended terms of the note that were previously announced in February of this year.
Chairman and CEO Carmine T. Oliva said the final payoff of the note with PEM represents the achievement of another important milestone for EMRISE. "The payoff of this note puts a lengthy and very difficult situation behind us," Oliva added. "In addition to paying off the PEM note, we believe the Company has made other significant progress in implementing its turnaround strategy and is well positioned to achieve its revenue and profit goals in 2012 and beyond."
Oliva noted that as a result of the early payoff of the note with PEM, the Company expects to record a gain on the transaction in this year's second quarter ended June 30, 2012.
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; radio frequency (RF) and microwave signal processing; and network access to public and private communications networks. The use of its network products in public and private, legacy and latest Ethernet and Internet Protocol (IP) networks is a primary growth driver for the Company's Communications Equipment business segment. The use of its power supplies, RF and microwave signal processing devices and subsystems in on-board In-Flight Entertainment and Connectivity systems is a primary growth driver for the Company's Electronic Devices business segment. EMRISE serves the worldwide base of customers it has built in North America, Europe and Asia through operations in the United States, England and France. EMRISE is a publicly traded company whose common stock trades on the OTCBB under the symbol EMRI. For more information, go to www.emrise.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, certain matters discussed in this press release including but not limited to management's belief that in addition to paying off the PEM note, the Company has made other significant progress in implementing its turnaround strategy and is well positioned to achieve its revenue and profit goals in 2012 and beyond are forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE Corporation could differ from those statements. The Company also refers you to those factors contained in the "Risk Factors" section of EMRISE's Annual Report on Form 10-K for the year ended December 31, 2011, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.
SOURCE EMRISE Corporation