Signal Technology Announces Financial Guidance for 2002 in Advance of Needham & Company Growth Conference
DANVERS, Mass.--(BUSINESS WIRE)--Jan. 9, 2002--
Company Anticipates Growth in 2002 Defense Sales, Earnings, with Lower Commercial Wireless Sales; Raises Previously Announced Guidance
for Fourth Quarter of Fiscal 2001
Signal Technology Corporation ("Signal") (Nasdaq: STCO), a leading provider of electronics and power management products for wireless communications in the defense and commercial markets, today announced financial guidance for the first quarter and full year 2002 in advance of its presentation at the Fourth Annual Needham & Company Growth Conference in New York.
Signal anticipates sales growth of between five percent and 10 percent for its defense business in 2002, reflecting expected increases in U.S. military spending for electronic intelligence systems, precision guided munitions, missile defense and emerging Homeland Security initiatives. In the commercial wireless business, the Company remains guarded in its assessment of the fixed wireless markets while anticipating a return to growth for the mobile appliance market beginning in 2002 and continuing through 2006. Signal's R&D investments will continue to focus on opportunities in both the defense and mobile appliance markets. With these investments, the Company expects to report a loss for 2002.
Signal anticipates that revenues for the first quarter of 2002 will be between $17.0 million and $19.0 million, compared with revenues of $22.8 million a year earlier, reflecting a downturn in commercial wireless revenue. Net loss is anticipated to be approximately $2.7 million, or $0.27 per diluted share, compared with net income of $170,000, or $0.02 per diluted share, for the first quarter of 2001. For the full year 2002, the Company expects to report revenues of between $92 million and $94 million, up slightly from expected results in 2001. Research and development expense is forecast to be $10.3 million for 2002, which will contribute to an expected net loss for 2002 of between $5.8 million and $6.2 million.
In addition, the Company confirmed that it expects its fourth-quarter 2001 revenues to be approximately $25 million, producing a loss for the quarter of $0.10 per share.
"Signal is positioned to accelerate its defense-related sales in line with anticipated increases in U.S. military spending," said George Lombard, chairman and chief executive officer. "Consequently, we anticipate that Signal's defense business will post sales of approximately $83 million in 2002, a six percent increase from 2001. In the commercial wireless market, our investments will continue to focus aggressively on developing products for the mobile appliance market. We expect this initiative to begin generating key design wins during the third quarter of 2002, with volume production beginning early in 2003."
"Our commercial wireless business posted strong sales during the first half of 2001, prior to the telecom industry's capital spending retrenchment," Lombard continued. "Consequently, year-over-year comparisons will be very difficult for this segment of our business during the first and second quarters of 2002. We are forecasting our commercial wireless revenues at $10 million for 2002, a decrease of 19 percent from 2001."
Signal will be presenting at the Fourth Annual Needham & Company Growth Conference in New York City today at 4:30 p.m. (ET). Signal President/COO Jim DiLorenzo and CFO Bob Nelsen will discuss the Company's growth strategies for the defense and commercial wireless markets and Signal's projected financial performance for the first quarter and 2002 fiscal year.
For those unable to attend the conference, Signal will broadcast its presentation live over the Internet. Those interested should visit Signal's Web site (www.sigtech.com), and click on the "Corporate Information" link at least 15 minutes prior to the Web cast. Instructions are provided for participants to download and install the necessary audio applications, free of charge.
Signal expects to report its fourth-quarter and full-year 2001 financial results on February 12, 2002. |
