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Integral Systems Announces Sublease of Former Headquarters Facility in Lanham, Md

Nov 1, 2010

 

Integral Systems, Inc. /quotes/comstock/15*!isys/quotes/nls/isys entered into a sublease agreement with Thompson Creek Window Company on September 24, 2010, for one of its former headquarters facilities located at 5000 Philadelphia Way, Lanham, Md. The Company moved its headquarters to Columbia, Md., in May 2009.

 

The sublease on the 46,700 square foot facility commenced on October 1, 2010, for a period of five years and one month -- the full remaining term of Integral Systems' lease. Integral Systems expects that the sublease will generate approximately $1.08 million in cash flow over the five-year period and $200,000 in Fiscal Year 2011 (FY11). The Company recorded a $2.8 million lease loss reserve in the fiscal year ending September 24, 2010. The reserve reflects the impact of subleasing the facility at a lower rental rate than the original lease and an increased reserve on its adjacent property at 5200 Philadelphia Way. The 5200 Philadelphia Way facility was fully vacated by the Company during the fourth quarter of 2010.

 

"The sublease of our former offices is a positive step forward for Integral Systems as we continue to reduce our operating costs," said Christopher Roberts, CFO of Integral Systems. "Working together with Thompson Creek and our prime landlord, BECO Management, Inc., the sublease allows us to decrease our real estate-related liabilities and augment our cash generation over the next five years."