LCC International Raises $9M Working Capital and Announces 2008 Restructuring Savings of $11.7M
Friday September 5, 9:30 am ET
MCLEAN, Va.--(BUSINESS WIRE)--LCC International, Inc. (NASDAQ:LCCI - News) today announced that the Company has entered into an agreement with its current lender (Bank of America) to obtain an additional $9M working capital supported by a limited guaranty by two existing LCC preferred shareholders (Milfam Guarantor, LLC and BR Investco, LLC). The working capital will allow the Company to support new growth opportunities, fund restructuring costs and provide for other working capital requirements. The terms and conditions of the agreement, and details on the guarantors’ terms, were presented via an investor webcast which is available within the investor relations section at www.lcc.com and covered in greater detail in 8-K’s filed today.
The company also announced that it has taken steps towards profitability through global cost reductions of $11.7M for 2008 or $21.9M on an annualized basis. These cuts were implemented during the 2nd and 3rd Quarters. The company will continue to drive operational efficiencies within all regions as well as corporate as it continues to align costs with predictable revenues.
“We remain focused on right sizing the business towards profitability,” said Kenny Young, LCC’s President and CEO. “With the first half of the year actions behind us and our improved working capital position we can now address new opportunities, while remaining focused on controlling expenses.”
About LCC International, Inc.
LCC International is the recognized leader in providing wireless voice and data turn-key services to the telecommunications industry. The Company's service offering includes network services, business consulting, tools-based solutions; and training through its world-renowned Wireless Institute. The Company has worked with all major access technologies (including UMTS, EV-DO, HSDPA and WiMAX) and has participated in the success of some of the most sophisticated wireless systems in the world. LCC is unique in its ability to provide comprehensive turnkey services to wireless operators around the world. The Company brings local knowledge and global capabilities to its customers, offering innovative solutions, insight into cutting-edge developments and delivering solutions that increase business efficiencies. News and additional information are available at www.lcc.com.
Cautionary Note regarding forward-looking statements under the Private Securities Litigation Reform Act of 1995:
Information in this release regarding LCC’s expectations, beliefs, and intentions are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to LCC as of the date of this release, which may change, and LCC assumes no obligation to update any such forward-looking statement. These statements are not guarantees. Factors that could cause or contribute to differences from such expectations include, but are not limited to risks associated with international operations, challenges and costs arising from integration of new operations and other factors that may affect our business are discussed in LCC’s filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q.
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