Planar Systems Inc says it has completed the acquisition of Standish Industries Inc (CI No 3,234), a privately-held manufacturer of flat panel liquid crystal displays. The previously undisclosed purchase price was about $15 million. The new company will be called Planar Standish and will remain in Lake Mills, Wisconsin. Planar says the purchase makes it the largest US independent merchant supplier of flat panel displays – a market estimated to reach $5bn by 2002. As a result of the acquisition, Planar will take a one-time, non-cash charge against its earnings for in-process research and development in the fourth quarter of fiscal 1997. The company says the amount of the charge can’t be determined at this time, but the it expects it will have a significant impact on net earnings resulting in a significant net loss position for the fourth quarter and for the year ended September 26, 1997. Planar also says that in addition to the one time charge, it expects that Q4 results will likely fall significantly below analyst’s fourth quarter expectations, currently at $0.24 per share. The company cited a shipment of defective guns (the device that shoots electrons at the display screen) leading to delays in product production and normal quarterly revenue fluctuations due to government budget constraints as the primary reasons for shortfall. Planar shares fell $0.5625 to $11.5625 as a result of the warning.
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