Vari-L Company Provides Guidance on Future Revenues
Impressive nonetheless. See in bold.
Francois
Vari-L Company Provides Guidance on Future Revenues
4/19/01
DENVER, Apr 19, 2001 /PRNewswire via COMTEX/ -- Vari-L Company, Inc. (OTC: VARL), a leading provider of advanced components for the wireless telecommunications industry, today said that slowing growth in the wireless communications sector is expected to impact the Company's revenues beginning in the second half of fiscal 2001.
Pappas said the slowdown in the wireless industry and the economy in general has caused some OEM's to re-examine their cost structure and to seek price concessions from component vendors like Vari-L. As a result, Vari-L has reduced prices for some of its larger OEM customers that are expected to result in lower revenue in the second half of fiscal 2001 and into the new fiscal year. The Company currently forecasts a decline in revenues of approximately 15% to 25% as compared with the immediately preceding six-month period. For the quarter ended March 31, 2001, the Company plans to report revenues of approximately $10 million, which will be eight percent less than revenues reported in the quarter ended December 31, 2000. Pappas noted that, despite the slowdown, revenues in fiscal 2001, which ends June 30, 2001, are anticipated to be approximately 25% to 35% higher than the comparable twelve-month period ended June 30, 2000.
"While our short term growth rate is unclear due to a variety of market forces, over the long term we are confident that demand for our products and services will grow as wireless communications infrastructure is expanded around the world," Pappas added. "In the meantime, we will continue to enhance and expand on our technology, seek new markets for our products and provide our customers with superior customer service.
"Due to a variety of factors, including uncertainty in the wireless industry and the economy, as well as the ongoing shareholder litigation process, we are not prepared to make any specific revenue or profitability forecasts at this time," Pappas said.
Headquartered in Denver, Vari-L designs, manufactures and markets wireless communications components that generate or process radio frequency (RF) and microwave frequency signals. Vari-L's patented products are used in commercial infrastructure equipment (including cellular/paging/PCS base stations and repeaters, fixed terminal point to point/multi-point data radios including LMDS/MMDS), consumer subscriber products (advanced cellular/PCS/satellite handsets, web-enabled smart phones, 2-way pagers, wireless PDAs, home networking), and military/aerospace platforms (satellite communications/telemetry, missile guidance, electronic warfare, electronic countermeasures, battlefield communications). Vari-L serves a diverse customer base of the world's leading technology companies, including Adaptive Broadband, Agere, Agilent Technologies, Digital Microwave, Ericsson, Glenayre Technologies (Wireless Access), Boeing Satellite Systems, Harris, Lockheed Martin, Lucent Technologies, Microwave Data Systems, Mitsubishi, Motorola, NEC, NeoPoint, Netro, Nokia, Novatel Wireless, Raytheon, and Siemens.
Some of the statements contained in this news release are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, including but not limited to general economic conditions in the United States and the overseas markets served by the Company, the success of the products into which the Company's products are integrated, governmental action relating to wireless communications, licensing and regulation, the accuracy of the Company's internal projections as to the demand for certain types of technological innovation, competitive products and pricing, the success of new product development efforts, the timely release for production and the delivery of products under existing contracts, and the outcome of pending and threatened litigation and regulatory actions as well as other factors.
SOURCE Vari-L Company, Inc. |
