Sparton (NYSE: SPA) announces management appointments to further accelerate the implementation of its strategic growth plan. As stated in the strategic plan, Sparton will continue to provide complex electronic and electromechanical devices and related services through niche opportunities in the Military and Aerospace, Medical, and Industrial markets. Much of Sparton’s growth will be driven by the acquisition of complementary businesses. This organizational change builds on the implementation of a national business development organization which has resulted in significant organic growth in the last fiscal year. Additionally, Sparton will continue to invest in the ongoing development of its proprietary product lines.
Effective immediately, Jake Rost assumes an expanded role as Vice President, Business Development. In this role, Rost will be directly responsible for business development and marketing efforts across the company. He will ensure that best practices are being leveraged while working to strengthen our brand image in the markets we serve.
“Jake came to Sparton in March 2011 as part of our Byers Peak acquisition and most recently was the Vice President of Medical. In that role, Jake successfully implemented a world-class business development and business-to-business marketing approach that significantly increased our Medical revenue and new business pipeline within the Medical segment,” commented Mr. Wood. “It is our expectation that with this change, Jake will apply the same set of tools in Sparton’s other business segments to achieve the same type of success.”
Sparton’s revenue for its Medical segment increased by 18% in the first 3 quarters of fiscal 2012 as compared to the same period in the prior fiscal year and is net of the effect of certain medical program attrition that was previously announced.
Further, Mike Osborne assumes the role of Senior Vice President, Corporate Development with Jake Rost reporting to him. Osborne will continue to work with Company leaders on implementing Sparton’s strategic growth plan, acquiring compatible and complementary businesses, and overseeing the Business Development and Investor Relations functions.
“Sparton is in a unique position by having a de-levered balance sheet,” said Cary B. Wood, president and CEO of Sparton. “With more than $26 million in cash, less than $2 million in long-term debt, and an untapped $20 million line of credit, we have the ability to facilitate significant strategic transactions. In the last few years, Mike and the Sparton team successfully identified and closed several acquisitions that have been very successful investments. We see numerous opportunities to expand geographically, to enhance our capabilities, and to add service offerings in the electromechancial value stream.”
Steve Korwin, Senior Vice President, Quality, Engineering, and IT, will continue to oversee the internal product research and development process. In 2011, Sparton launched a technologically advanced, proprietary line of navigation and exploration products: the DC-4, an enhanced digital compass used by manned and unmanned land navigation systems in static environments; the GEDC-6, a gyro-enhanced attitude heading reference system used in dynamic unmanned land and sea navigation systems; and, the PHOD-1, a small, rugged, omnidirectional, broadband hydrophone for underwater applications. At the AUVSI’s Unmanned Systems North America exhibition from August 6-9 in Las Vegas, NV, Sparton will release the AHRS-8, an attitude heading reference system with temperature compensation used in unmanned aerial vehicles.
“We have continued to prudently invest in the development and launch of certain navigation products. Our new product development phase-gated process helps us identify niche market-driven selling opportunities with an internal rate of return that justifies the overall investment,” said Mr. Wood. “We expect to expand this product line in the future as well as continue to invest in other proprietary technological ideas that are being generated by our staff of more than 100 professional engineers.”
Mr. Wood concludes, “As Sparton continues to implement its strategic growth plan, we plan to meet our growth expectations by focusing on mergers and acquisitions, new business development, and internal product research and development. I am pleased with our success in implementing the growth strategy to date. With these changes, I’m also excited about Sparton’s future.”
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 112th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical, Military & Aerospace, and Industrial & Instrumentation. Headquartered in Schaumburg, IL, Sparton currently has five manufacturing locations worldwide. Sparton's Web site may be accessed at http://www.sparton.com.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton's filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton's services described in Sparton's filings with the SEC. In particular, see the risk factors described in Sparton's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.
Greg Slome, 847-762-5812
Mike Osborne, 847-762-5814
Institutional Marketing Services (IMS)
John Nesbett or Jennifer Belodeau, 203-972-9200
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