Aeroflex Holding Corp. , a leading global provider of microelectric components, recently announced the divesture of its Aeroflex Test Equipment Services (ATES) business to Trescal Limited for approximately $18.7 million.
ATES, a subsidiary of Aeroflex, provides calibration and repair services of non-Aeroflex test and measurement equipment in the U.K. ATES serves a wide range of industries such as the aerospace, defense, communications, oil and gas as well as medical sectors.
The divestment will enable Aeroflex to concentrate more on its core competencies. Aeroflex primarily provides test and measurement equipment to the wireless communications industry.
Aeroflex manufactures various components and equipment for the space, avionics, defense and commercial wireless communications industries. The strategic sale is also likely to boost the company’s liquidity.
Aeroflex operates under two segments, namely Aeroflex Microelectronic Solutions and Aeroflex Test Solutions. The Microelectronic segment provides a broad range of microelectronics products and is a premier provider of high-performance, high reliability specialty products for the commercial wireless communications and the space, avionics, defense, medical and other markets. The Test Solutions segment provides a broad array of specialized test and measurement hardware as well as software products.
Aeroflex reported net revenue of $647.1 million for the fiscal year ended Jun 30, 2013. The company reported a net loss of $104.2 million or $1.23 per share for fiscal 2013.
Aeroflex currently carries a Zacks Rank #2 (Buy). Some other stocks that are worth a look include Advanced Micro Devices, Inc. (AMD - Free Report) , ARM Holdings plc and Diodes Incorporated (DIOD - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).