Also got ELMG 11.31 -4.70 on this: EMS Technologies Announces Third Quarter Financial Results to be Below Expectations
Monday September 30, 9:54 am ET
ATLANTA, Sept. 30 /PRNewswire-FirstCall/ -- EMS Technologies, Inc. (Nasdaq: ELMG - News) today announced that third quarter results for 2002 will be below expectations. However, the Company expects that the third quarter results in 2002 will be considerably higher than for the same period one year earlier, when the Company reported earnings of $1 million, or $.10 per share, on revenues of $69 million. In addition, the Company expects to report substantial positive cash flow from operations during the third quarter.
Alfred G. Hansen, president and chief executive officer, commented, "Despite economic conditions that have affected some of our key markets, we would have achieved our objectives for the quarter if we had received, as expected, several specific large orders for EMS Wireless and LXE products late in the third quarter. However, for varying reasons these potential orders were not received, and we believe they have slipped into future periods.
"While we are disappointed that these orders were not received on the expected schedule, the quality of our products and customer relationships remain strong, and we are still very upbeat about the prospects for our business. In today's markets, it is a significant accomplishment to be able to report earnings growth over the comparable period one year earlier, as well as strong positive cash flow. And although we are now unlikely to achieve earlier expectations for the full year, we fully expect that our 2002 results will still show strong positive growth over the $6.7 million or $.67 per share (excluding one-time charge for contract reserve) that we reported in 2001.
"We are also encouraged by our base of technologies, which remains formidable and has positioned us well in emerging markets. During the past year, we have announced an impressive string of first-to-market products in broadband and mobile access markets, including the first aeronautical terminal for high-speed data access, the first Direct Broadcast Satellite (DBS) antenna for use in on-board passenger aircraft entertainment systems, and the world's first broadband hub and terminal supporting the DVB-RCS (Digital Video Broadcast - Return Channel via Satellite) open standard. Furthermore, we continue to make important new inroads in defense markets, where our advanced communications and surveillance products help provide crucial information to the U.S. military.
"Although market and economic uncertainties may persist, we believe that EMS will continue to be a solid performer."
EMS Technologies, Inc. is a leading provider of technology solutions to wireless and satellite markets. The Company focuses on mobile information users, and increasingly on broadband applications. The Company is headquartered in Atlanta, employs nearly 2,000 people worldwide, and has manufacturing facilities in Atlanta, Montreal, Ottawa and Brazil.
The Company has four main families of products...
* Space & Technology antennas and other hardware, for space and satellite
communications, radar, surveillance, military countermeasures, and
other specialized uses,
* LXE mobile computers and wireless local area networks, for materials
handling and logistics,
* EMS Wireless base station antennas and repeaters, for PCS/cellular
telecommunications,
* SATCOM antennas and terminals, for aeronautical and land-mobile
communications via satellite.
Statements contained in this press release regarding the potential for various businesses and products, as well as the Company's 2002 earnings targets, are forward-looking statements. Actual results could differ from those statements as a result of a wide variety of factors. Such factors include, but are not limited to...
* economic conditions in the U.S. and abroad and their effect on capital
spending in the Company's principal markets;
* volatility of foreign exchange rates relative to the U.S. dollar and
their effect on purchasing power by international customers, as well as
the potential for realizing foreign exchange gains or losses associated
with net foreign assets held by the Company;
* successful resolution of technical problems that may be encountered on
contracts;
* successful completion of technological development programs by the
Company and the effects of technology that may be developed by
competitors;
* successful transition of products from development stages to an
efficient manufacturing environment;
* customer response to new products and services, and general conditions
in our target markets (such as logistics, PCS/cellular telephony, and
space-based communications);
* the availability of financing for satellite data communications systems
and for expansion of terrestrial PCS/cellular phone systems;
* the extent to which competing terrestrial systems succeed in providing
extensive broadband Internet access on a dependable and economical
basis;
* the growth rate of demand for various mobile and high-speed
communications services;
* development of successful working relationships with local business and
government personnel in connection with distribution and manufacture of
products in foreign countries;
* the Company's ability to attract and retain qualified personnel,
particularly those with key technical skills; and
* the availability of sufficient additional credit or other financing, on
acceptable terms, to support the Company's expected growth.
Additional relevant factors and risks are identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.
Looks overdone to me....tuna |
