SUNNYVALE, Calif.-California Microwave Inc. completed the sale of its government business to Northrop Grumman for $93 million in cash, for an approximate net gain of $38 million, said the company.
California Microwave will use the cash to retire its short-term debt, resume its buyback program and continue to invest in the development and marketing of its new wireless broadband products.
The company also said that due to a revenue shortfall primarily in its international satellite communications business, it expects to record a loss of $5.4 million, or 36 cents per share, when it reports results on April 29 for the third quarter ended March 31.
