Wednesday June 17, 4:46 pm Eastern Time
Company Press Release
SOURCE: Andrew Corporation
Andrew Corporation Expects Third Quarter Results
Lower Than Analysts' Estimates -- Announces 5 Million
Additional Share Repurchase
ORLAND PARK, Ill., June 17 /PRNewswire/ -- Andrew Corporation (Nasdaq: ANDW -
news), a global supplier of communications systems equipment, expects that results for the third
quarter ended June 30, 1998 will fall short of analysts' expectations. With the information we
have available today, we estimate sales and diluted earnings per share for the quarter might be
5% to 10% below last year's third quarter sales of $209 million and diluted earnings per share
from continuing operations of $.31, excluding restructuring charges. Last year's third quarter
diluted earnings per share from continuing operations were $.27. The company expects to
release quarter end June 30, 1998 financial results on July 16, 1998.
Floyd L. English, chairman, president and chief executive officer, said, ''Overall customer
spending in the U.S. wireless infrastructure market has continued its slower pace and the
economically strained Southeast Asian markets have contributed very little business. Sales
continue to grow in certain emerging geographic regions such as Brazil, China, Mexico and South
Africa. However, the growth is not yet strong enough to offset the combined impact from United
States and Southeast Asia. Andrew Corporation is confident in the long term opportunities in
Asia and will continue to develop its manufacturing capabilities in Suzhou, China.''
Over one year ago, the company began an effort to redesign its major profit sharing plan and set
a June 30, 1998 conversion date. The new plan gives participants the ability to self direct a
significant portion of their account along with more investment choices and more frequent trading
options. As a result of this action, the company plans to make a private purchase of
approximately 1,900,000 shares from the Andrew Profit Sharing Trust on June 30, 1998. After
the expected sale, the Trust will hold approximately three million shares of Andrew stock.
To date in the June 1998 quarter, the company has repurchased 793,000 shares of stock for
approximately $17.3 million. Since May 1997, 3,643,000 shares have been repurchased at a
total cost of $91.4 million.
On June 17, 1998 the Board of Directors authorized an additional five million share repurchase
bringing the total to 6,357,000 shares (approximately 7%) of the company's outstanding common
stock. Repurchased stock will be available for employee stock programs and general corporate
purposes. The company will fund the purchases through cash and cash equivalents on hand and
through the company's line of credit. As of May 31, 1998 the company had $117 million in cash
on hand. Subject to price and market conditions, shares will be repurchased from time to time in
open market and private transactions.
Forward Looking Statements
Some of the statements in this news release are forward looking statements and we caution our
stockholders and others that these statements involve certain risks and uncertainties. Factors that
may cause actual results to differ from expected results include, but are not limited to, effects of
competitive products and pricing, economic and political conditions that may impact customers'
ability to fund purchases of our products and services, end use demand for wireless
communication services, and other business factors. Investors should also review other risks and
uncertainties discussed in company documents filed with the Securities and Exchange
Commission.
Andrew Corporation is a global supplier of communications systems equipment and services.
Major markets are wireless Communications which includes cellular, personal communications
services, and land mobile radio broadcast and common carrier. Andrew is an S&P 500
company listed on the Nasdaq National Market System under the symbol: ANDW.
SOURCE: Andrew Corporation
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Wednesday June 17, 5:39 pm Eastern Time
Andrew sees lower Q3 results, cites Asia
ORLAND PARK, Ill., June 17 (Reuters) - Andrew Corp., which supplies communications
products and systems, said Wednesday it expects results for its fiscal third quarter ended June
30, 1998 will fall short of analysts' expectations.
Andrew said it estimates sales and diluted earnings per share for the quarter might be five to ten
percent below last year's third quarter sales of $209 million and diluted earnings per share from
continuing operations of $0.31, excluding restructuring charges.
The company expects to release third quarter financial results on July 16, 1998.
According to First Call, analysts' mean estimate of Andrew's third quarter earnings is $0.33 a
share.
Andrew cited weak markets in the U.S. and Asia for its third quarter shortfall.
''Overall customer spending in the U.S. wireless infrastructure market has continued its slower
pace and the economically strained Southeast Asian markets have contributed very little
business,'' said Floyd English, chairman, president and chief executive officer, in a news release.
Sales continue to grow in certain emerging regions such as Brazil, China, Mexico and South
Africa, he said. However, the growth is not yet strong enough to offset the combined impact from
United States and Southeast Asia, he added.
English said that Andrew is confident in the long term opportunities in Asia and will continue to
develop its manufacturing capabilities in Suzhou, China.
In another development, Andrew said its board of directors authorized an additional five million
share repurchase bringing the total to 6,357,000 shares (about seven percent) of the company's
outstanding common stock.
Repurchased stock will be available for employee stock programs and general corporate
purposes. The company said it will fund the purchases through cash and cash equivalents on hand
and through the company's line of credit. As of May 31, 1998 the company said it had $117
million in cash on hand. Subject to price and market conditions, shares will be repurchased from
time to time in open market and private transactions, the company said.
To date in the June 1998 quarter, the company has repurchased 793,000 shares of stock for
about $17.3 million. Since May 1997, 3,643,000 shares have been repurchased at a total cost of
$91.4 million.
Andrew also said that it the company plans to make a private purchase of about 1.9 million
shares from the Andrew Profit Sharing Trust on June 30, 1998. After the expected sale, the
Trust will hold about 3.0 million shares of Andrew stock.
Over one year ago, Andrew began an effort to redesign its major profit sharing plan and set a
June 30, 1998 conversion date. The new plan gives participants the ability to self direct a
significant portion of their account along with more investment choices and more frequent trading
options. |
