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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: January 5, 1996
(Date of Earliest Event Reported)
COMMUNICATIONS SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Minnesota 0-10355 41-0957999
(State or other jurisdiction (Commission File (Federal Employer
of Incorporation) Number) Identification No.)
213 South Main Street
Hector, MN 55342
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 848-6231
Total Pages (2)
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COMMUNICATIONS SYSTEMS, INC.
FORM 8-K
Items 1 - 4 Not Applicable.
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Item 5. Other Events.
On January 4, 1996, Communications Systems, Inc. (the "Company" or "CSI")
completed the acquisition of Automatic Tool and Connector Co., Inc. ("ATC") in a
stock purchase transaction. Based in Union, New Jersey, ATC manufactures high
performance fiber optic and RF connectors, interconnect devices and coaxial
cable assemblies for the telecommunications, medical, electronics, computer and
other markets.
For the fiscal year ended April 30, 1995, ATC had sales of $3.2 million. Its
gross margins are comparable to those of CSI's domestic telecommunications
business.
ATC's flagship product line is the Quick Term fiber optic connector. This
patented product significantly reduces the installation time and costs
associated with making fiber optic connections. Conventional fiber optic
connecting devices require a curing process of approximately 20 minutes. By
eliminating the need for a curing oven, ATC's Quick Term technology reduces
field installation time to approximately two minutes per connection.
CSI believes the acquisition of ATC will round out the Company's offerings of
key telecommunications technologies. Together with CSI's existing copper wire
technology, CSI believes ATC will enable the Company to offer an expanded range
of connecting and cabling solutions to its customers.
The consideration paid by CSI to stockholders of ATC consisted primarily of $1.2
million cash and 112,676 shares of CSI common stock. In connection with the
acquisition, ATC's President and CEO, Alvin Chaiken, entered into a one year
employment agreement.
Items 6 - 8 Not Applicable.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMMUNICATIONS SYSTEMS, INC.
By Paul N. Hanson
Paul N. Hanson
Vice President and
Chief Financial Officer
January 5, 1996
