Pennsauken-based Lattice Inc., a provider of advanced information and communications technology solutions to the government and commercial markets, has completed the sale of certain non-strategic Department of Defense assets for $1.2 million plus additional earn-out provisions based on contract renewals.
Lattice will record a one-time gain on the transaction of approximately $400,000 and will see a working capital improvement of approximately $700,000. The transaction is expected to have a nominal effect on current operating income levels while reducing top-line revenues by approximately $2.5 million.
"The rapid growth of our communications segment has been masked by changing dynamics in our government services business," said Paul Burgess, CEO of Lattice, in a release. "By divesting aspects of our legacy government business, our top line will more accurately reflect the ongoing strong performance of our high-growth communications segment. In addition, this transaction removes contract renewal risk associated with the current budgeting climate in Washington."
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