* Exploring alternatives for perimeter security business
* Says prior results will be restated to reflect divestiture (Follows alerts)
Oct 6 (Reuters) - 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 Samuel)