California Microwave Completes Sale of Government Business

Sunnyvale, CA-based California Microwave Inc. has completed the sale of its government business to Northrop Grumman (Los Angeles) for $93 million in cash for an approximate net gain of $38 million. The company will use the cash to retire its short-term debt, resume its share buyback program, and continue to invest in the development and marketing of its new wireless broadband products.

Also, due to a revenue shortfall primarily in its international satellite communications business, the company expects to record a loss from continuing operations of $5.4 million ($0.36 per share) when it reports results April 29 for its third quarter ended March 31.