* Exploring alternatives for perimeter security business
* Says prior results will be restated to reflect divestiture
Oct 6 Gun maker Smith & Wesson Holding Corp
said it has decided to shed its perimeter security
business and is currently exploring alternatives for it in order
to focus on its core firearm business.
In mid-2009, the company bought Universal Safety Response to
diversify into the perimeter security market, but the company
has since faced persistent sales declines in the segment.
Just last month, the company -- which competes with Sturm
Ruger & Co Inc , Glock Inc and Taurus -- said it expects
the security solutions business to hurt earnings.
"Since our acquisition of Nashville-based Universal Safety
Response, the environment for the perimeter security business
has deteriorated substantially as a result of significantly
reduced government spending," Chief Executive James Debney said
in a statement.
"We believe its strengths could be better maximized as an
independent company, or as part of a group of companies, focused
entirely on the security solutions market," Debney said.
Smith & Wesson shares were up 4 percent at $2.75 in trading
after the bell. They closed at $2.64 on Thursday on Nasdaq.
(Reporting by Abhishek Takle in Bangalore; Editing by Maju