American Power Conversion Comments on Competitor Lawsuit
APC Reaffirms Previously Stated Financial Guidance
WEST KINGSTON, R.I., Aug. 25 /PRNewswire/ -- American Power Conversion (Nasdaq: APCC) announced today that competitor General Signal Power Systems, Inc., parent company of Best Power, has filed a lawsuit against the Company in the United States District Court for the Western District of Wisconsin alleging patent infringement and false advertising. Best is seeking unspecified damages and injunctive relief.
"We are currently reviewing this lawsuit and intend to vigorously defend against it," said Rodger B. Dowdell, Jr., APC's president and CEO.
In the opinion of management, the ultimate disposition of this matter should not have a material adverse effect on the Company's consolidated financial position or results of operations and liquidity.
"APC's current quarter-to-date sequential revenue growth is solid and we remain comfortable with achieving the annual earnings-per-share guidance as outlined in the Company's second quarter earnings release of approximately $.93 for 1999, which accounts for the two-for-one stock split effected on May 28," said Donald M. Muir, APC's chief financial officer.
APC and Best Power recently settled and agreed to dismiss with prejudice a lawsuit filed by Best related to a contractual relationship between Best and APC subsidiary Silcon Power Electronics A/S. The terms of the settlement, which were favorable to APC, included Best paying monetary compensation to APC.
Safe Harbor Provision
Statements contained in this press release which are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those projected. The factors that could cause actual results to differ materially include the following: A variance in the actual versus estimated charge associated with organizational changes; APC's ability to successfully integrate Silcon's operations; the timely development and acceptance of new products; ramp up, expansion and rationalization of global manufacturing capacity; general worldwide economic conditions; growth rates in the power protection industry and related industries, including but not limited to the PC, server, networking and enterprise hardware industries; competitive factors and pricing pressures; changes in product mix; changes in the seasonality of demand patterns; inventory risks due to shifts in market demand; the effects of any other possible acquisitions; component constraints and shortages; risk of nonpayment of accounts receivable; changes in customer order patterns and product demand related to year 2000 purchasing issues; impact on the Company's business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems; the uncertainty of the litigation process including risk of an unexpected, unfavorable result of current or future litigation; and the risks described from time to time in the Company's filings with the Securities and Exchange Commission.
About American Power Conversion
Founded in 1981, American Power Conversion (Nasdaq: APCC) is a leading provider of global, end-to-end power protection products and services, which include surge suppressors, uninterruptible power supplies (UPS), power conditioning equipment, related software, and professional and consulting services for Nonstop Networking(TM).
APC's comprehensive solutions, which are designed for both home and corporate environments, improve the manageability, availability and performance of sensitive electronic, network, communications and industrial equipment of all sizes. APC, which is headquartered in West Kingston, Rhode Island, reported sales of $1.126 billion for the year ended December 31, 1998.
All trademarks are the property of their owners. Additional information about APC and its global end-to-end solutions can be found by accessing the APC World Wide Web site at www.apcc.com or by calling 800-877-4080.
For more information contact:
Investors:
Donald M. Muir, chief financial officer, 800 788 2208 ext. 2105
Deborah K. Grey, investor relations manager, 800 788 2208 ext. 2994,
dgrey@apcc.com
Media:
Jodi Kennedy, director of media relations, 800 788 2208, ext. 2158,
jkennedy@apcc.com
SOURCE American Power Conversion
CO: American Power Conversion; General Signal Power Systems, Inc.
ST: Rhode Island, Wisconsin
IN: CPR FIN
SU: LAW
08/25/99 16:30 EDT prnewswire.com |
