2-for-1 Stock Split OKd by Eltron International

Eltron International Inc., a Chatsworth-based company that makes bar code label printers and related accessories, said its board of directors has approved a two-for-one stock split, and that the company has requested permission from the Securities and Exchange Commission to offer 1.75 million shares of common stock.

The stock split, scheduled to take effect on Monday, would boost the number of common stock shares outstanding from 2.87 million currently to 5.74 million.

Following the split, the company hopes to proceed with a public offering of 850,000 shares of common stock to be issued and sold by Eltron, and 900,000 shares to be sold by certain shareholders. Eltron said proceeds from the sale of the company’s shares will be used to purchase tooling and equipment, fund research and development activities, repay bank debt, and for general working capital purposes, which may include strategic acquisitions.

Eltron also announced that the British Postal Service has placed a one-time, $800,000 order for Eltron printers. Approximately $500,000 of this order was delivered at the end of the first quarter of 1995, the company said.

As a result of this order and a previously announced $950,000 shipment of Eltron printers to a state agency, the company said it now anticipates first quarter sales totaling between $8.3 million and $8.7 million, exceeding management’s previous expectations. But Donald Skinner, chief executive of Eltron, said the company “does not anticipate achieving this level of sales in future quarters in the near-term.”