Axsys Selling AST Bearings

Axsys Selling AST Bearings Axsys Technologies Inc. (USA; NASDAQ: AXYS) has put its AST Bearings division [website] up for sale. Making the announcement, Axsys said AST Bearings is, "a non-strategic business," the sale of which will free up cash to pay down debt and, "allow management to focus on Axsys' increasingly prominent and faster growing optics business." Ironically, now a non-strategic business, AST Bearings long predates the parent company's current name and business direction. Founded in 1964, AST became part of the precision electrical component manufacturer, Vernitron Corp., which started business in 1959. Vernitron was renamed Axsys in 1997. AST supplies precision ball bearings and other bearings -- rod end, bushings, roller bearings, linear bearings -- to OEM and replacement markets in North America and for export. Clients are primarily in precision motion control, such as military, aerospace and electronic equipment. AST also works with customers to develop and produce proprietary bearings. The company has two locations: Montville, New Jersey; and Irvine, California. AST's unique technical resources include a precision relubrication service and the ability to provide custom engineering design for specialty applications and integrated components. Axsys said it expects AST Bearings to record 2007 sales of approximately $29 million and see net income of approximately $1.5 million (5.1% of sales). Chairman and CEO, Stephen Bershad, said: "This is an important step forward for our company. Upon completion of this sale, we will complete our transformation into a focused organization with a unified growth strategy." Mr. Bershad went on to say: "Axsys will emerge from this sale as a well-positioned, focused company with a strong growth history and a very promising future."