New Energy Systems Group Sells Declining E'Jenie and NewPower Battery Components and Li-ion Battery Business
ew Energy Systems Group (NYSE: NEWN) today announced its Board of Directors and Management team have finalized the sale of its E'Jenie and NewPower battery and battery components business to a group of employees in each business unit for approximately $13.4 million. After suspending guidance in August 2011, the Company has also provided a detail to its revised guidance for the full year of 2011.
"As discussed on our third quarter conference call, we have continued to witness a decline in our E'Jenie and NewPower business units in an increasingly competitive marketplace in China," began Chairman and CEO, Weihe "Jack" Yu. "A recent product return of approximately $1.7 million of NewPower batteries from a customer and large impairment charges we reported in the third quarter related to those two respective business units further confirmed our decision to exit these declining businesses. We are confident this move will enable us to focus on our more promising Anytone® and Kim Fai solar businesses in the coming year and improve our overall financial results."
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