SAWS responds to price-drop -- sounds like a pretty weak "defense" to me, at least as relates to the company's long-term prospects...
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Monday December 18, 12:46 pm Eastern Time
Sawtek Responds to Unusual Market Activity
ORLANDO, Fla.--(BUSINESS WIRE)--Dec. 18, 2000--Sawtek Inc. (Nasdaq:SAWS - news) today is responding to the unusual market activity in the Company's stock.
Raymond A. Link, Chief Financial Officer, stated, ``It appears that the unusual trading activity in our stock today is attributed to a press release by Qualcomm issued today relating to a new technology. Qualcomm, in its press release, stated that this new technology could eventually eliminate certain components, including IF SAW filters, in the intermediate frequency chain for CDMA phones. Qualcomm further stated that it would not begin sampling this product until the fourth quarter of calendar 2001. As a result of this delayed product sampling, Sawtek believes that the introduction of this new technology will have little or no impact on its revenues or profits for fiscal 2001.''
Comments on Forward-Looking Statements
The forward-looking statements in this release are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that forward-looking statements such as statements of the Company's plans, objectives, expectations and intentions involve risks and uncertainties. The cautionary statements made in this release should be read as being applicable to all related statements wherever they appear. Statements containing terms such as ``believes'', ``does not believe'', ``no reason to believe'', ``expects'', ``plans'', ``projects'', ``intends'', ``estimates'', ``anticipates'', or similar terms, are considered to contain uncertainty and are forward-looking statements. The Company's actual results could differ materially from those discussed. Factors that could contribute to such differences include the following: a decline in either the growth of wireless communications or the acceptance of CDMA technology; our ability to successfully develop and bring new products to market, particularly RF filters; our ability to successfully increase production capacity; competitive products or technologies that could reduce demand for our products such as direct conversion or digital filtering technology; our dependence on a limited number of suppliers for certain key raw materials; risks associated with international sales; our dependence on a few large customers; increased sales through consignment agreements; declining selling prices for some of our key products; decreased manufacturing yields; cancellation of purchase orders by our customers; our inability to protect our intellectual property or if we infringe on the intellectual property of others; increased competition from other SAW suppliers; risks associated with our Costa Rican operations; risk of natural disasters; and other risks discussed in our SEC filings including Form 10K for the year ended September 30, 2000, which can be accessed at the SEC web site, www.sec.gov. Specific reference should be directed to page 22 of our Form 10K filed with the Securities and Exchange Commission on November 13, 2000, where the Company details the risk factor titled, ``New competitive products or technologies may be developed which could reduce demand for our products.'' In this risk factor, the Company specifically referenced that Qualcomm is working on a direct conversion concept for CDMA phones for potential production in the future. |
