Endwave Provides Updated Revenue Outlook for the Fourth Quarter of 2008
January 07 2009 - 5:00PM
Business Wire
Endwave Corporation (NASDAQ:ENWV) today provided an updated revenue
estimate for its fourth quarter of 2008. Management currently
anticipates reporting fourth quarter revenues of approximately $10
million as contrasted with revenues of $12 to $13 million projected
during their third quarter conference call on October 21, 2008. �As
discussed on our third quarter conference call, we expected a
decline in total revenues during the fourth quarter due to weak
demand from our telecommunications customers. However, the
contraction in our telecom revenues has been larger than we had
originally predicted,� stated Ed Keible, President and Chief
Executive Officer of Endwave. �While the Telecom market is weak, we
continue to see and to capture important opportunities in the
defense and security markets. Unfortunately, for 2009, we currently
anticipate that our expected growth in defense and security markets
will be more than offset by a decline in our telecom revenues.
Therefore, we presently expect our total revenues in 2009 will be
approximately 10% to 15% lower than 2008. We will provide a more
detailed view of 2009 during our quarterly call at the beginning of
February.� Commenting further on the fourth quarter, Brett Wallace,
Executive Vice President and Chief Financial Officer added, �During
Q4, we saw a rapid degeneration in market conditions for our
telecom customers. We had a significant decrease in demand from
Nokia Siemens Networks, our largest customer. In addition, one
customer, Allgon Microwave AB, failed to pay Endwave for shipments
made to Allgon and for inventory purchased by Endwave.
Consequently, during the quarter, we filed a lawsuit in Montreal,
Quebec against Advantech Advanced Microwave Technologies Inc., the
parent company of Allgon Microwave AB. While we believe that we
will prevail in our lawsuit, we also think it is prudent to reserve
a portion of the approximately $800,000 currently in dispute. This
reserve will be reflected in our Q4 financial statements.� Endwave
will report financial results for the fourth quarter of fiscal 2008
ended December 31, 2008 on Tuesday, February 3, 2009 at 1:30 p.m.
Pacific Time (PT). Endwave will release the company's financial
results at approximately 1 p.m. PT on the same day. To listen to
the live conference call, please dial (303) 262-2211 by 1:20 p.m.
PT on February 3. Starting approximately one hour after the
completion of the live call, a replay will also be available until
February 10. To access the recording, dial (303) 590-3000 (Pass
code: 11124548 #). Investors are also invited to listen to a live
and/or archived webcast of Endwave's quarterly conference call on
the investor relations section of the company's Web site at
http://www.endwave.com. The webcast replay will be available for 90
days. About Endwave Endwave Corporation designs, manufactures and
markets RF modules that enable the transmission, reception and
processing of high-frequency signals in telecommunications
networks, defense electronics and homeland security systems. These
RF modules include high-frequency integrated transceivers,
amplifiers, synthesizers, oscillators, up and down converters,
frequency multipliers and microwave switch arrays. Endwave has 43
issued patents covering its core technologies including
semiconductor and proprietary circuit designs. Endwave Corporation
is headquartered in San Jose, CA, with operations in Diamond
Springs, CA; El Dorado Hills, CA; Salem, NH; and Chiang Mai,
Thailand. Additional information about Endwave can be accessed from
its web site at www.endwave.com. �Safe Harbor� Statement under the
Private Securities Litigation Reform Act of 1995: This press
release and the conference call referred to in this press release
may contain forward-looking statements within the meaning of the
Federal securities laws and is subject to the safe harbor created
thereby. Any statements contained in this press release or on the
conference call that are not statements of historical fact may be
deemed to be forward-looking statements. Words such as �plans,�
�intends,� �expects,� �believes� and similar expressions are
intended to identify these forward-looking statements. Information
contained in forward-looking statements is based on current
expectations and is subject to change. Actual results could differ
materially from the forward-looking statements due to many factors,
including the following: global economic conditions and their
impact on our customers; volatility resulting from consolidation of
key customers; our ability to achieve revenue growth and maintain
profitability; our customer and market concentration; our
suppliers� abilities to deliver raw materials to our specifications
and on time; our successful implementation of next-generation
programs, including inventory transitions; our ability to penetrate
new markets; fluctuations in our operating results from quarter to
quarter; our reliance on third-party manufacturers and
semiconductor foundries; acquiring businesses and integrating them
with our own; component, design or manufacturing defects in our
products; our dependence on key personnel; the outcome of our
litigation against Advantech Advanced Microwave Technologies Inc.;
and fluctuations in the price of our common stock. Forward-looking
statements contained in this press release and on our conference
call should be considered in light of these factors and those
factors discussed from time to time in Endwave's public reports
filed with the Securities and Exchange Commission, such as those
discussed under �Risk Factors� in Endwave�s most recent Annual
Report on Form 10-K and subsequently-filed reports on Form 10-Q.
Endwave does not undertake any obligation to update such
forward-looking statements.
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