Genisco Technology to Sell Unprofitable Electronics Division

Genisco Technology Corp. said Monday it will sell its electronic products division.

A spokesman for the Anaheim maker of computer workstation products would not identify the potential buyer or disclose the terms of the sale, except to say that it will result in a $520,000 charge against Genisco’s earnings.

The company’s electronics division, which produces filters for electronic equipment, lost $312,816 on revenue of $1.82 million for the first nine months of the year.

Unrelated to the sale of the electronics division, the company said it has undertaken several moves aimed at keeping the company’s listing on the American Stock Exchange. Company shareholders have approved a 1-for-10 reverse stock split, which will push the current stock price to about $1 a share. Genisco said it also has plans to sell $5.5 million of debt and 8 million preferred shares to an investor group.

Genisco does not currently meet American Stock Exchange capital guidelines for continued listing.

In Monday’s market trading, Genisco’s stock closed at 9 cents a share, unchanged.