Planar Announces Sale of Electroluminescent (EL) Business to Beneq

  Planar Announces Sale of Electroluminescent (EL) Business to Beneq

Business Wire

BEAVERTON, Ore. -- November 30, 2012

Planar Systems, Inc. (NASDAQ: PLNR), a worldwide leader in specialty display
solutions, announced the sale of its electroluminescent (EL) display business
to Beneq Oy, a supplier of production and research equipment for advanced thin
film coatings. Under the terms of the transaction, consideration consists of a
$6.5 million base purchase price, of which $3.9 million was paid in cash at
closing and $2.6 million was paid in the form of a promissory note. The
transaction terms also provide for up to $3.5 million in possible additional
cash consideration which can be earned in calendar years 2013, 2014, 2015
based upon the EL business achieving certain financial results.

“The sale of our EL business to Beneq represents an important milestone in the
execution of our strategic plan,” said Gerry Perkel, president and CEO of
Planar. “We were able to add cash to our balance sheet and are now able to
focus more of our attention and resources on our digital signage and
interactive display product lines. In addition, we believe EL customers and
employees will benefit from having the EL business now under the direction of
a recognized leader in the use of atomic layer deposition (ALD) technology, a
critical component of EL display production.” The Company will be working with
Beneq after the closing to ensure customers are fully supported in the
transition.

REVISIONS TO THE BUSINESS OUTLOOK FOR THE FIRST QUARTER OF FISCAL 2013

As a result of the sale of the EL business, the Company is updating its
forward looking estimates for the first quarter of fiscal 2013. The Company
currently anticipates revenue in the range of $41 to $44 million and a
Non-GAAP loss of $0.05 to a Non-GAAP profit of $0.01 in the first quarter of
2013, excluding the gain or loss recorded on the sale of the EL business.

ABOUT PLANAR

Planar Systems Inc. (NASDAQ: PLNR) is a global leader in digital display
technology providing premier solutions for the world's most demanding
environments. Retailers, educational institutions, government agencies,
businesses, utilities and energy firms, and home theater enthusiasts all
depend on Planar to provide superior performance when image experience is of
the highest importance. Planar solutions are used by the world’s leading
organizations in applications ranging from digital signage to simulation and
from interactive kiosks to large-scale data visualization. Founded in 1983,
Planar is headquartered in Oregon, USA, with offices, manufacturing partners,
and customers worldwide. For more information, visit www.planar.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of
1995: This release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995 relating to Planar’s
business operations and prospects, including statements relating to the
Company’s expected levels of revenue, Non-GAAP income, and any gain or loss on
the sale of the EL business in the first quarter of fiscal 2013, and the other
statements made under the heading “Business Outlook,”. These statements are
made pursuant to the safe harbor provisions of the federal securities laws.
These and other forward-looking statements, which may be identified by the
inclusion of words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” “goal” and variations of such words and
other similar expressions, are based on current expectations, estimates,
assumptions and projections that are subject to change, and actual results may
differ materially from the forward-looking statements. These statements are
not guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Many factors, including the
following, could cause actual results to differ materially from the
forward-looking statements: poor or further weakened domestic and
international business and economic conditions; changes or continued
reductions in the demand for products in the various display markets served by
the Company; any delay in the timing of customer orders or the Company’s
ability to ship product upon receipt of a customer order; the extent and
timing of any additional expenditures by the Company to address business
growth opportunities; any inability to reduce costs or to do so quickly
enough, in either case, in response to reductions in revenue; adverse impacts
on the Company or its operations relating to or arising from any inability to
fund desired expenditures, including due to difficulties in obtaining
necessary financing; changes in the flat-panel monitor industry; changes in
customer demand or ordering patterns; changes in the competitive environment
including pricing pressures or the ability to keep pace with technological
changes; technological advances; shortages of manufacturing capacity from the
Company’s third-party manufacturing partners or other interruptions in the
supply of components the Company incorporates in its finished goods including
as a result of natural disasters like the recent earthquakes and tsunami in
Japan; future production variables resulting in excess inventory and other
risk factors listed from time to time in the Company’s periodic filings with
the Securities and Exchange Commission (SEC). The forward-looking statements
contained in this press release speak only as of the date on which they are
made, and the Company does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the date of
this press release.

Contact:

Planar Systems, Inc.
MEDIA CONTACTS:
Kim Brown, 503-748-6724
kim.brown@planar.com
or
INVESTOR CONTACTS:
Ryan Gray, 503-748-8911
ryan.gray@planar.com