A Durham-based manufacturer of defense and aerospace electronic devices and communications equipment is selling off its businesses and shutting down its operations.
Emrise, a publicly traded company that established a small corporate presence in Durham in 2010 when it shifted its headquarters from New Jersey, announced Monday that it had agreed to sell its electronics business, Emrise Electronics, for $22 million in cash.
Emrise also is seeking to sell the remainder of its communications equipment business, CXR Anderson Jacobson. The company sold its other communications equipment business, CXR Larus, last year.
Emrise also reported that its board of directors unanimously adopted a "plan of liquidation and dissolution" under which the company would wind down its operations following the sale of its electronics business.
Investors apparently like the plan. Emrise shares rose 16.5 cents, or 22 percent, to close Monday at 90 cents.
Emrise had 203 employees in the U.S., France and the United Kingdom as of March 31, 2014, down from 307 employees at the end of 2009.
Emrise didn't specify what drove its decision to sell off its businesses, and a spokesman for a communications agency retained by the company said it wouldn't be commenting beyond its announcement and a related filing with the Securities and Exchange Commission.
Emrise reported it would receive net proceeds of $11 million from the sale of Emrise Electronics – after deducting debt, transaction expenses and other costs – to Data Device Corp.
Based in Bohemia, N.Y., Data Device is a privately held maker of components for the aerospace and defense industries and for industrial automation. Data Device executives couldn't be reached for comment.
The company has been cash-strapped and reported having $1.4 million in cash as of Sept. 30, up from $1.2 million a year ago.
Last year, when it filed its annual financial results with the SEC, Emrise reported that it needed additional cash to pay its debts and invest in the business. It raised the possibility of selling assets if it was unable to generate additional cash from operations or obtain new financing.
The company's debt totaled $6.5 million as of Sept. 30. The company's revenue has been on the upswing recently, but its net income hasn't benefited.