SOURCE: Lattice Incorporated

Lattice Incorporated

May 09, 2013 07:00 ET

Lattice Sells Non-Strategic DoD Assets for $1.2 Million

Divesture Unmasks Performance of High-Growth Communications Segment

PENNSAUKEN, NJ--(Marketwired - May 9, 2013) - Lattice Incorporated (OTCBB: LTTC) ("Lattice" or the "Company"), a provider of advanced information and communications technology solutions to the government and commercial markets, completed the sale of certain non-strategic Department of Defense assets for $1.2 million plus additional earn-out provisions based on contract renewals.

Lattice will record a one-time gain on the transaction of approximately $0.4 million and will see a working capital improvement of approximately $0.7 million. The transaction is expected to have a nominal effect on current operating income levels while reducing top-line revenues by approximately $2.5 million.

"The rapid growth of our communications segment has been masked by changing dynamics in our government services business," stated Paul Burgess, Chief Executive Officer of Lattice. "By divesting aspects of our legacy government business, our top line will more accurately reflect the ongoing strong performance of our high-growth communications segment. In addition, this transaction removes contract renewal risk associated with the current budgeting climate in Washington."

About Lattice Incorporated

Lattice Incorporated provides advanced information and communications technology solutions to customers globally. The Company's innovative, cost-effective solutions leverage its proprietary Nexus platform, a real-time transaction processing engine, to develop and deliver customized cloud-based software applications with military-grade security for markets that require highly secure solutions. For more information, visit http://www.latticeinc.com.

Safe Harbor Statement

Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the risk factors disclosed in the Company's periodic reports filed with the SEC. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk factors disclosed in the company's Forms 10-K previously filed with the SEC.

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