Newspaper article THE JOURNAL RECORD

Unico to Sell American Educational Computer Assets

Newspaper article THE JOURNAL RECORD

Unico to Sell American Educational Computer Assets

Article excerpt


By Kirby Davis Assistant Managing Editor Less than two years after acquiring American Educational Computer Inc., UNICO Inc. of Oklahoma City has signed a letter of intent to sell substantially all of the computer software and video publishing subsidiary to Denver-based Plasmedics Inc. for about $1.1 million.

The sale, expected to be closed by Dec. 15, is subject to completion of a definitive asset purchase agreement and approval by the boards of directors of UNICO, American Educational Computer and Plasmedics, as well as certain other conditions, UNICO said Wednesday.

The advertising and publishing firm, formerly known as CMS Advertising Inc., purchased American Educational Computer in March 1989. UNICO also owns United Coupon Corp., which it acquired in July 1987, and Greenleaf Catalogue, purchased in February 1989.

"This move is in accordance with our overall objective to narrow the developmental focus of UNICO and to concentrate more on profitable cooperative advertising and direct sales channels," said Doug Frans, chief executive officer of the Oklahoma City-based firm.

"We have developed an excellent library of computer software and video products, but we have been hampered in our marketing efforts by a need for more innovative marketing programs and by the slowing of the U.S. economy. We have recently experienced a decline in sales of our retail products and believe that the proposed transaction allows us to maximize our return from the investment we have made in these publishing assets."

In related news, UNICO reported Wednesday a third quarter 1990 net loss of $51,677 compared to a profit of $6,267 for the same period last year. Revenues fell 5.8 percent to $1.7 million from $1.8 million the previous year, which UNICO attributed to a 38 percent drop in product sales.

"Our computer software and video businesses are certainly not immune to the overall slowdown that the U.S. economy is experiencing," Frans said. "We believe that our actions to reduce overhead within our publishing operations and to sell a majority of this business are appropriate on both a short-term and long-range perspective. Our narrowed focus should be reflected rapidly in improved earnings and liquidity."

Under terms of the letter of intent, UNICO would receive cash and notes receivable from Plasmedics for substantially all the assets of American Educational Computer (AEC). Also, Plasmedics would assume responsibility for payment of the UNICO subsidiary's trade payables and accrued liabilities. …

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