Phoenix: White Electronic Designs no Longer Seeks Buyer

White Electronic off the sales block
Phoenix Business Journal

Wednesday, June 17, 2009

White Electronic Designs Corp. has taken itself off the sales block following a review of options by a board committee and its legal and financial team.

White (Nasdaq:WEDC) has been through a number of changes over the past year, including the exit of CEO Hamid Shokrgozar and a shift from its Display Systems Division and focus on its military electronics business.

The Phoenix company also announced Wednesday that Brian Kahn had been elected chairman, replacing founder Edward White in that position.

Kahn, founder of Caiman Partners L.P., has been a board member since February. White has been a board member since starting the company in 1951 and previously served as CEO and chairman before returning to the chairman’s post last year after Shokrgozar resigned.

In exploring possible sale of the company, officials said there were several formal offers, but: “After careful consideration of alternatives, the company has determined that shareholders’ interests will be best served by continuing to operate as a stand-alone entity.”

Tuesday’s announcement, however, also said White Electronic would continue to evaluate opportunities to purchase other companies.

Citing past losses and depressed stock price, Caiman Partners was part of an investor group that tried to take control of White Electronic earlier this year proposing its own slate of directors. That proxy fight was settled via the addition of board positions, including Kahn’s seat, and a change in company bylaws.

The first quarter hit a positive note at the company with net income of $136,000 compared with a $1.5 million loss for the same period last year. Revenue increased to $17.1 million for the quarter, up from $14.6 million last year.

In announcing his retirement, White said: “I am extremely excited about the increasing amount of success that the company is experiencing. Since September 1951, this company has been my labor of love. After spending this past year working with the board to determine the appropriate future course for the company, I could not be more pleased with the results.”

Wednesday, June 17, 2009
Avnet, White Electronic Designs sign distribution agreement
Phoenix Business Journal

Avnet Inc. will begin distributing products from White Electronic Designs Corp. in North and South America.

The agreement between the two Phoenix-based companies will allow White’s multichip package products to be available through Avnet’s (NYSE:AVT) Electronic Marketing Americas unit. No financial details of the deal were made public.

“WEDC products offer defense and aerospace customers unique package solutions with extended environmental performance,” said Bryan Brady, vice president of defense and aerospace for Avnet Electronics Marketing Americas.

White (Nasdaq:WEDC), whose board announced earlier Wednesday the company would not be sold, supplies various packages for defense and aerospace applications.

“Avnet’s design and supply chain expertise will enable us to better support and service our customers and to expand our presence in the defense electronics market,” said Dan Tarantine, interim office of the president and executive vice president of sales and marketing for White Electronic Design.