Replay of conf call-- Fri 8/21 800- 633-8284 #4630433
Signal Technology to Delay Reporting Second-Quarter 1998 Results
DANVERS, Mass.--(BUSINESS WIRE)--Aug. 19, 1998--Signal Technology Corp. (AMEX:STZ) announced that it expects to file its second-quarter 1998 Form 10-Q with the Securities and Exchange Commission in four to six weeks.
The filing will follow an audit by PriceWaterhouseCoopers, the company's auditor, to determine the extent of contract adjustments and inventory write-downs that must be made in the second quarter and in prior periods. On Aug. 17, Signal Technology reported that it expects to report a pre-tax charge between $9 million and $12 million for these adjustments.
"Nearly 95 percent of the adjustments are related to our Keltec Operation," said George Lombard, the company's chairman, president and chief executive officer. Lombard said that the adjustments were necessary based on underpriced contracts, work in process and excess inventory, among other inventory-related issues.
Lombard stated that the company's other five divisions remain operationally sound, and that the company expects to report no further losses for the balance of the year.
Lombard emphasized the strength of Signal Technology's financial position, stating that the Bank of Boston, the company's commercial banker, has reiterated its confidence in the company. Although the anticipated charge will impact the company's balance sheet and financial ratios, the Bank of Boston has agreed to waive any covenant violation.
Signal Technology also announced that the American Stock Exchange has halted the trading of the company's common stock on the exchange until the June 30, 1998, Form 10-Q and any restated prior period filings are filed with the SEC. At this time, the company is unable to state when trading of its stock on the AMEX will resume.
Signal Technology designs and produces sophisticated, state-of-the-art electronic components and systems for a variety of defense, space and communication applications, including communications networks, satellite communications, electronic countermeasures, intelligence and guidance systems.
For further information about Signal Technology, visit the company's Web site at sigtech.com. |
