Signal Technology (now STCO)- a classic turnaround Message Board

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Technology Stocks : Signal Technology (now STCO)- a classic turnaround

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Mar 7 3:00 PM EST

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To: Paul Lee who started this subject	11/9/2001 8:32:18 AM
From: Paul Lee	of 191

Signal Technology Comments On Recent Developments At Spike Broadband Systems DANVERS, Mass.--(BUSINESS WIRE)--Nov. 9, 2001--Signal Technology Corporation (Nasdaq: STCO) (Signal), a leading provider of electronics products for wireless communications in the commercial, defense and space markets, today commented on news stories regarding the significant reduction in work force by Spike Broadband Systems, Inc. (Spike). On October 25th, Signal announced a third-quarter inventory charge of $0.54, after tax, a portion of which reflected disclosure to Signal of a dramatic reduction in Spike's near-term projections for sales of its fixed wireless access (FWA) products due to a slowdown in the Sonofon deployment in Denmark. Signal had been supplying FWA customer premise equipment to Spike under a $7.5 million contract announced during the first quarter of 2001. The third-quarter charge reflected certain inventories as well as product that was shipped to Spike, but not paid for. "We are disappointed by Spike's need to significantly reduce its workforce," said Signal's Chairman and Chief Executive Officer George Lombard. "We have been impressed by Spike's technology strengths and the quality of its management team and employees. The difficulties that Spike has faced in this challenging fixed wireless market are most unfortunate. Based on actions we took during the third quarter, however, we believe Signal is fully reserved with respect to this development."

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