IntriCon Sells Ownership in Joint Venture
Company's 50-Percent Stake in Global Coils Sold to Joint Venture Partner, Audemars SA
ARDEN HILLS, Minn.--(BUSINESS WIRE)-- IntriCon Corporation (Nasdaq: IIN) , a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced that during the third quarter it completed the sale of its 50-percent ownership interest in Global Coils, to its Switzerland-based joint venture partner, Audemars SA. The Global Coils joint venture designs, manufactures, markets and sells audio coils primarily to the European hearing health industry.
"The sale of our stake in Global Coils was in the best interest of both Audemars and IntriCon," said Mark S. Gorder, president and chief executive officer at IntriCon. "This move allows us to focus more capital and resources on developing core technologies and expanding our sales and marketing group—both of which are important to growing our medical body worn device business."
Audemars, which paid $426,000 in cash for IntriCon's stake at closing, will make future payments, both one time and recurring, as specified in the purchase agreement. Audemars also will transfer certain hearing health inventory to IntriCon. IntriCon expects to record a third-quarter gain on the sale in the range of $750,000 to $850,000 pretax, or $0.13 to $0.14 per share. Including the impact of the gain on sale, IntriCon anticipates modest profitability in the third quarter, ended Sept. 30, 2012.
About IntriCon Corporation
Headquartered in Arden Hills, Minn., IntriCon Corporation designs, develops and manufactures miniature and micro-miniature body-worn devices. These advanced products help medical, healthcare and professional communications companies meet the rising demand for smaller, more intelligent and better connected devices. IntriCon has facilities in the United States, Asia and Europe. The company's common stock trades under the symbol "IIN" on the NASDAQ Global Market. For more information about IntriCon, visit www.intricon.com.
Statements made in this release and in IntriCon's other public filings and releases that are not historical facts or that include forward-looking terminology are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond IntriCon's control, and may cause IntriCon's actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2011. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.
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