Signal Technology Announces Timing of SEC Filings, Operational Changes Instituted
DANVERS, Mass.--(BUSINESS WIRE)--Sept. 25, 1998--Signal Technology Corp. (AMEX:STZ) Friday announced that it expects to file its Form 10-Q for the quarter ended June 30, 1998, with the Securities and Exchange Commission by Oct. 23, 1998.
The company also anticipates that by Oct. 30, 1998, it will file a restated Form 10-Q for the quarter ended March 31, 1998, as well as a restated Form 10-K for the fiscal year ended Dec. 31, 1997.
The filings will follow completion of an audit by the company's auditors, PriceWaterhouseCoopers, to determine the extent and timing of pre-tax write-downs related primarily to inventory and contracts at the company's operating divisions. As previously reported, the company expects the charges to be not more than $12 million, principally attributable to its Keltec Division.
Commented George Lombard, Signal Technology's chairman of the board, president and chief executive officer: "Because of the nature and scope of these developments, the audit has taken longer than anticipated. While we regret this delay, we want to ensure that we are dealing with all inventory-related issues, and we are, therefore, conducting a painstaking analysis of each of our operating divisions. We appreciate the patience of the investment community."
Lombard added: "While the issues at Keltec are serious, we believe every one of them can be remedied. Further, our other four operating divisions appear operationally sound. We have assembled a strong and committed management team that is dedicated to restoring Signal Technology to profitability. Through their efforts, I have every confidence we will succeed. To address problems such as those uncovered at Keltec, we have made several management changes and instituted new and strengthened operating controls. Among these we have:
1. Hired a new chief financial officer;
2. Hired a new president and operating management group for
Keltec;
3. Placed greater emphasis on contract delivery performance;
4. Established corrective action focus teams;
5. Strengthened program planning and material control
functions;
6. Established monthly operational performance reviews in
each of our operating divisions; and
7. Tightened cash flow management.
"We intend to restructure the customer service departments, streamline all material functions and re-establish a strong program management structure in each of our operations. These measures are designed to increase accountability and improve efficiency," concluded Lombard. |
