I guess this is the capper to the worst investment I have ever made:
Adaptive Broadband and Western Multiplex Agree to Call Off Merger, Citing Current Unfavorable Market Conditions
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 11, 2001--Adaptive Broadband(TM) Corporation (Nasdaq National Market:ADAP - news) announced that it and Western Multiplex Corporation have agreed to a friendly unwinding of the companies' merger agreement announced November 13, 2000.
Uncertain Stock Market, Weakness in Fixed Wireless Industry Among
Reasons for Halting Merger
Adaptive Broadband and Western Multiplex have decided to call off their planned merger. ``The fixed wireless industry currently is experiencing weakness in the U.S., and financing is eroding for emerging carriers. From a stock market point of view, fixed wireless specifically, and telecommunications stocks, in general, have really taken a beating, making it very difficult to put a monetary valuation on this transaction at this time. While we continue to believe in the strategic merits of a merger with Western Multiplex, prevailing market conditions do not allow a deal at this time,'' commented Adaptive Broadband's Daniel L. Scharre.
Adaptive Broadband recently lowered revenue expectations for its fiscal year 2001 second quarter ended December 31, 2000, to $8 million from an anticipated $31 million. The company is currently evaluating its financial model for its new fiscal year beginning January 1, 2001, especially the potential impact of customer issues surrounding the Competitive Local Exchange Carriers, the company's primary U.S. market. Adaptive Broadband is expected to announce second-quarter results and discuss its current business environment in its press release and conference call on January 25, 2001. The company is not holding a conference call prior to the January 25 call.
Management Transition Plan Accelerated at Adaptive Broadband
In view of recent developments, Adaptive Broadband's board of directors has accelerated a management transition plan. Daniel L. Scharre has been named president and chief executive officer and joins the board immediately. Frederick D. Lawrence is retiring immediately from the company rather than in July 2001, as planned, and has resigned as chairman of Adaptive Broadband's board of directors. Leslie G. Denend, currently a member of Adaptive Broadband's board of directors assumes chairmanship of the board. Additionally, Peter J. Maloney, senior vice president of finance, succeeds Donna S. Birks as chief financial officer, who has also accelerated her retirement plan. These management changes are effective immediately.
``Adaptive Broadband was not for sale when approached by Western Multiplex and is not currently for sale. We will move forward as a viable, stand-alone company, and believe that our technology leadership position, strong balance sheet and expanding international opportunities will allow us to succeed in the fixed wireless market,'' commented Les Denend, chairman of the board.
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