SINGAPORE - Cylink Corporation (NASDAQ: CYLK) today announced
a definitive agreement to acquire Celotek Corporation, a privately held developer
of high-performance Asynchronous Transfer Mode (ATM) network security appliances used to secure voice, video and
data transmissions over high-speed public and private wide area networks.
The definitive agreement calls for Cylink to issue US$21.5 million in common stock and the acquisition will be treated for accounting purposes as a purchase. The transaction will be dilutive to net earnings in the third quarter of this year, but the Company expects it will contribute to achievement of its goal of reaching fourth quarter profitability. Completion of the acquisition is conditioned, among other matters, upon approval by Celotek's shareholders, and is expected to close by the end of the current quarter.
William P. Crowell, Cylink's President and Chief Executive Officer points out that the acqusition will increase their flexibility in driving market acceptance of ATM security as a means of securing backbone telecommunications. The acquisition with Celotek would also bring new channel partners to Cylink.
Earlier this week, Cylink announced its financial results for the second quarter at US$18.0 million, an 18 percent increase over the US$15.2 million reported in the comparable period of 1999.
Celotek is a high performance security solutions.
CellCase(tm) cryptographic systems set the standard for ATM network security, providing transparent Triple DES encryption at speeds ranging from 1.5 Mbps to 622 Mbps.
About Cylink Corporation
Cylink Corporation develops, markets and supports a comprehensive family of secure e-business solutions. Founded in 1983, it was created to market security solutions that protect communications with public key cryptography.