Isola USA Corp. (Isola USA) and Park Electrochemical Corp. (Park) announced today that they have entered into an agreement to settle all pending litigation between the parties related to Isola’s patents for the use of Styrene Maleic Anhydride (SMA) in laminates. The settlement agreement will result in the dismissal of the patent infringement lawsuit that Isola USA filed against Park and its subsidiaries, Nelco Products, Inc. (Nelco) and Neltec, Inc. (Neltec) in the United States District Court for the District of Arizona on June 26, 2012. The terms of the settlement were not disclosed; however, Park, Nelco and Neltec agreed to refrain from challenging the validity or enforceability of any of Isola’s SMA patents. In the settlement, neither party admitted any liability or wrongdoing. "We are pleased with this settlement and believe that this resolution is positive for Isola and Park, Nelco and Neltec, and addresses the needs of our customers, our shareholders and the PCB industry,” said Raymond P. Sharpe, President and CEO of Isola Group. “Our relationship with Park Electrochemical has always been respectful of each other’s technology and this agreement reinforces that philosophy." Brian Shore, Park Electrochemical's President and CEO, said, "I have known and respected Ray Sharpe and Isola for many years. I believed from the beginning that Isola and Park would find a way to resolve this dispute, and I am pleased that we have done that. I wish Isola good luck in the future." About Isola Isola USA Corp. is a wholly-owned subsidiary of Isola Group S.à.r.l., which is headquartered in Chandler, Arizona, and is a global material sciences company focused on designing, developing, manufacturing, and marketing copper-clad laminates and dielectric prepregs used to fabricate advanced multilayer printed circuit boards. The company’s high-performance materials are used in sophisticated electronic applications in the communications infrastructure, computing/networking, military, medical, aerospace and automotive industries. For more information, visit http://www.isola-group.com/. About Park Park Electrochemical Corp. is a global advanced materials company which develops and manufactures high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies for the aerospace markets. Park’s core capabilities are in the areas of polymer chemistry formulation and coating technology. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains R & D facilities in Arizona, Kansas and Singapore. Additional corporate information is available on the Company’s web site at www.parkelectro.com.
Shareholders of Park Electrochemical Corp. looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the August covered call at the $25 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 8.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.8% annualized rate in the scenario where the stock is not called away.