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Press ReleaseZhone Technologies Announces Sale and Leaseback of its Oakland Campus Increasing Net Cash and Reducing Occupancy CostsOakland, CA — September 22, 2010 —
Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access
solutions for fiber, copper and wireless broadband infrastructures, announced
today that it entered into an agreement to sell its Oakland Ca., campus,
consisting of land and three buildings, to LBA Realty, LLC for approximately
$18.8 million in cash. A portion of the proceeds will be used to pay off the
existing debt on the campus. The sale is subject to customary closing
conditions and is currently expected to close by September 30, 2010. At the
same time, the Company entered into a lease agreement to rent one of the
buildings from LBA Realty for a five-year term.
"The sale and leaseback of our Oakland campus allows us to monetize the
value of current excess space and reduce occupancy costs going forward,"
stated Kirk Misaka, Zhone's chief financial officer. "As a result of
the transaction, we expect our cash net of debt obligations to improve by
approximately $18.0 million and our total cost of occupancy to decrease by
over $1.5 million per year." About Zhone Technologies
Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP
multi-service access solutions, serving more than 750 of the world's
most innovative network operators.
The IP Zhone is the only solution that enables service providers to
build the network of the future…today, supporting end-to-end Voice,
Data, Entertainment Social Media, Business, Mobile Backhaul and Mobility
service.
Zhone is committed to building the fastest and highest quality All IP
Multi-Service solution for its customers.
Zhone is headquartered in California and its products are manufactured
in the USA in a facility that is emission, waste-water and CFC free.
Contacts:
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice.
Forward-Looking Statements
This press release contains forward-looking statements that are subject
to the safe harbors created under the Securities Act of 1933 and the
Securities Exchange Act of 1934. Words such as "anticipate",
"believe", "continue", "could",
"estimate", "expect", "goal",
"intend", "may", "plan",
"project", "seek", "should",
"target", "will", "would", variations of
such words, and similar expressions are intended to identify
forward-looking statements. In addition, forward-looking statements
include, among others, statements that refer to first quarter 2010
financial estimates; projections of revenue, margins, expenses or other
financial items; and improvement of financial markets. Readers are
cautioned that actual results could differ materially from those
expressed in or contemplated by the forward-looking statements. Factors
that could cause actual results to differ include, but are not limited
to, commercial acceptance of our products; intense competition in the
communications equipment market; our ability to execute on our strategy
and operating plans; and economic conditions specific to the
communications, networking, internet and related industries. In
addition, please refer to the risk factors contained in the
Company's SEC filings available at http://www.sec.gov, including without
limitation, the Company's annual report on Form 10-K for the year
ended December 31, 2009. Readers are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of the
date on which they are made. Zhone undertakes no obligation to update or
revise any forward-looking statements for any reason. |
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