SCM Microsystems Announces Resolution of Claims Made by Digital Television Customer
October 21 2004 - 3:30AM
PR Newswire (US)
SCM Microsystems Announces Resolution of Claims Made by Digital
Television Customer FREMONT, Calif., Oct. 21 /PRNewswire-FirstCall/
-- SCM Microsystems (Nasdaq: SCMM; Prime Standard: SMY), a leading
provider of solutions that open the Digital World, announced today
that it has reached an agreement with a significant European
customer that resolves all claims previously made by that customer.
The resolution will result in a net payment to SCM by the customer
that is not expected to have a material effect on SCM's results of
operations or financial position. On July 9, 2004, SCM announced
that it had received a demand letter from the customer that alleged
damages due to performance issues with one of the Company's
products. "We are very pleased to have reached an amicable
resolution of our disputes," stated Robert Schneider, chief
executive officer of SCM Microsystems. "This agreement allows us to
avoid a potentially costly litigation process and paves the way for
mutually beneficial business relations in the future with this
longtime customer." About SCM Microsystems SCM Microsystems is a
leading supplier of solutions that open the Digital World by
enabling people to securely access digital content and services.
The Company develops, markets and sells its smart card reader
technology for network and physical access and conditional access
modules for secure digital TV decryption to OEM customers in the
government, financial, enterprise and broadcasting markets
worldwide. Global headquarters are in Fremont, California, with
European headquarters in Ismaning, Germany. For additional
information, visit the SCM Microsystems web site at
http://www.scmmicro.com/. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934. These statements are subject to
risks and uncertainties which may cause actual results to differ
materially from those contemplated herein. These include, without
limitation, our statements regarding (i) our expectation that the
resolution of previously alleged claims by a significant European
customer will result in a net payment to us from that customer; and
(ii) that the agreement we have made paves the way for mutually
beneficial business relations with this customer in the future.
Actual results could differ materially. The customer may not make
payments to us in the amounts or within the timeframes we expect.
Our ability to resume positive business relations with the customer
may not be realized. Other risks and uncertainties that could cause
our actual business and operating results to differ include, but
are not limited to our ability to grow based on a strategy of
participating in multiple early stage markets; our ability to
successfully develop and introduce new products that satisfy the
evolving and increasingly complex requirements of customers; the
markets in which we participate or target may not grow, converge or
standardize at anticipated rates or at all; we may not successfully
compete in the markets in which we participate or target; and
competitors could take market share or create pricing pressure. For
a discussion of further risks and uncertainties related to our
business, please refer to our public company reports, including our
Annual Report on Form 10-K for the year ended December 31, 2003 and
our Quarterly Report on Form 10-Q for the quarter ended June 30,
2004, both filed with the U.S. Securities and Exchange Commission.
NOTE: All trade names are the property of their respective owners.
DATASOURCE: SCM Microsystems, Inc. CONTACT: Darby Dye, Investor
Relations of SCM Microsystems, +1-510-360-2302, or Web site:
http://www.scmmicro.com/
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