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Technology / AI and automation

ELCOM LOOKS TO BE ACQUIRED TO BOOST STOCK PRICE

Software systems company Elcom International Inc has decided that its stock is undervalued and it is now looking to be either acquired or to get some additional funding to bump the price up. The Norwood, Massachusetts operation is the parent company of Elcom Systems Inc, an electronic commerce company and personal computer distributor Catalink Direct Inc, and is in the process of talking to possible buyers. Established in 1992 as an electronic commerce company, Elcom floated on the Nasdaq exchange two years ago. Since then it has managed to turn in consistent profitable results, the last lot being its third quarter which saw profits up 162% at $3.4m on revenues that rose 26% to $198m. Elcom anticipates 1998 revenues will hit $1bn, the majority of that being generated from Catalink. Elcom wants to grow further and believes the best way to do that at the present time, is via acquisition, but the Board of Directors does not believe that the company’s shares are sufficiently strong to enable it to purchase other companies successfully. Elcom shares closed Thursday at $7.125, although their high for the year hit $9.1875 in June, but were as low as $4.5 in April. If the company is acquired, it will make sure it is left in a position that will enable it to continue with its growth plans. Discussions are set to continue into the first quarter of next year.

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CBR Staff Writer

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