I think this was largely expected, and if anything may be better than forecast.
Stratos Lightwave Adjusts Preliminary Fourth Quarter Outlook
CHICAGO, Apr 19, 2001 /PRNewswire via COMTEX/ -- Stratos Lightwave, Inc., (Nasdaq: STLW chart, msgs) announced today that net sales and earnings for the fiscal fourth quarter ending April 30, 2001 will be lower than previously projected. The Company now expects fourth quarter net sales to be in the range of $25-$30 million. The Company also plans to take a special charge of approximately $3.1 million during the fiscal 2001 fourth quarter to reserve for obsolete and excess inventory. Based on these adjusted projections, the Company would expect net sales for the fiscal year ending April 30, 2001 to be $125-$130 million, an increase of approximately 75-80% over fiscal year 2000. Full year net profit margin is now expected to be in the range of 7-9% of net sales prior
to taking the inventory reserve.
"The general economic slowdown and the rescheduling of existing orders from some of our customers have caused us to readjust our previously released guidance," said Jim McGinley, President and Chief Executive Officer. "Throughout our sector, adjustments are being made with regard to inventory levels and customer needs. The relationships we have with our customers continue to be strong. As the economy changes and the general sector confidence improves, we are well positioned to be responsive to our customers' needs. In addition, we continue to broaden our customer base and move forward to expand our already broad product offerings."
The Company will provide additional forward-looking guidance when it releases its fourth quarter 2001 results on Wednesday, June 6, 2001, after the market closes. Following the release the Company will host a live audio webcast and conference call at 5:00 pm Eastern Standard Time. Investors and other interested parties may listen to the live webcast by visiting the investor relations section of the Stratos Lightwave website at www.stratoslightwave.com . Jim McGinley and David Slack, VP Finance and CFO, will discuss the company's earnings and operations. A webcast replay will also be available on the company's website.
About Stratos Lightwave:
Stratos Lightwave, Inc. develops, manufactures and sells optical subsystems and components for high data rate networking, data storage, and telecommunications applications. These optical subsystems are used in local area networks (LANs), storage area networks (SANs), metropolitan area networks (MANs), wide area networks (WANs), and central office networking in the telecommunications market. The company also designs, manufactures, and sells a full line of optical components and cable assemblies for use in these networks. Stratos Lightwave, Inc. is a subsidiary of Methode Electronics, Inc. (Nasdaq: METHA chart, msgs)
This press release contains predictions; estimates and other forward- looking statements regarding anticipated revenue growth, customer orders, manufacturing capacity and financial performance. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and we assume no obligation to update any such forward-looking statements. Forward-looking statements are subject to risks and uncertainties and actual results may differ materially from any future performance suggested. Risk factors that may affect the Company's performance are listed in the Company's S-1 registration statement for its initial public offering and its most recent Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission.
Source: Stratos Lightwave, Inc.
Contact:
Becky Hall, Manager Investor Relations of Shelton
Communications, for Stratos Lightwave, Inc., 972-239-5119
URL: stratoslightwave.com
Another copy: biz.yahoo.com |
