nord,
Seems like someone always knows before we do.... Could this be the reason the stock can't attract any new interest?
Ed...
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F O R . I M M E D I A T E . R E L E A S E
RELEASE DATE: February 8, 1999
CONTACT: Karen Elliott, Spectrum - Investor Communications,
604-421-5422
Email: Karen_Elliott@spectrumsignal.com
SPECTRUM SIGNAL PROCESSING INC. ANNOUNCES
DECLINE IN FOURTH QUARTER REVENUES
Burnaby, B.C., Canada - February 8, 1999 - Spectrum Signal Processing Inc.
(NASDAQ NMS: SSPIF / TSE:SSY), a world leader in high-performance Digital
Signal Processing (DSP) systems, announced today that revenues for the
fourth quarter ended December 31, 1998 will be approximately $6.5 million
(U.S.), or about 8% below third-quarter revenues of $7.1 million.
The decline reflects the impact of a ruling by Spectrum's auditors ensuring
that the Company's 1998 financial results comply with U.S. GAAP accounting
rules. The auditors' ruling requires Spectrum to defer approximately
$885,000 of revenues to the first quarter of 1999.
Spectrum switched to U.S. GAAP standards in 1998, and its 1998 year-end
results are, for the first time, being audited to conform with U.S. GAAP
standards. Spectrum expects to report its 1998 financial results February
16.
The specific shipments affected by the auditor's ruling had an average gross
profit margin of approximately 74%, compared to an average gross margin of
57% for all Spectrum shipments through the first nine months of 1998. The
ruling is expected to effectively reduce Spectrum's fourth-quarter earnings
by about four cents per share to approximately breakeven.
"We're obviously very disappointed that Spectrum's fourth-quarter revenues
and earnings will fall short of expectations, and we're keenly aware that
our shareholders expected more from us," said Barry Jinks, Spectrum's
President and CEO. "We expect to be judged by our performance, and it
simply wasn't good enough. That said, it is important to remember that
these revenues will be recorded in the first quarter of 1999, and the
negative impact on earnings for the fourth quarter will be partly offset by
Spectrum's recent cost-cutting moves, which are already bearing fruit."
Spectrum Signal Processing is a world leader in DSP system solutions, and
offers DSP software, off-the-shelf hardware, custom ASIC design and complete
custom systems. The company is ISO9001 quality certified and can be found
on the web at spectrumsignal.com. Spectrum is located at #100 -
8525 Baxter Place, Burnaby, B.C., Canada. ph (604) 421-5422; fax (604)
421-1764.
Any statements made by the company that are not historical facts are
forward-looking statements that are pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve risks and uncertainties, including the timely development
and acceptance of new products, the impact of competitive products and
pricing, changing market conditions and the other risks detailed in the
company's prospectus and from time to time in other filings. Actual results
may differ materially from those projected. These forward-looking
statements represent the company's judgment as of the date of this release.
The company may or may not update these forward-looking statements in the
future.
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