To: MikeM54321 who wrote (4359 ) 6/10/1998 5:30:00 PM From: MikeM54321 Read Replies (1) | Respond to
Re: Asia WarningsSawtek Announces Outlook for the Remainder Of Fiscal Year 1998 continued financial turmoil in South Korea and other Asian markets; currency fluctuations that have resulted in a strong dollar particularly compared to the Japanese Yen which is affecting our ability to compete with Japanese suppliers of surface acoustic wave devices; reduced prices on GSM base station filters due to the conversion to next generation products which are smaller, less expensive surface mount filters; and lowered forecasts for CDMA filters for both base station and handset filters from several of the Company's major customers. As a result, the Company has taken a number of steps to match production capacity to anticipated customer demand including: i) elimination of its weekend work shifts, which are primarily staffed with temporary employees, ii) reduction of certain general and administrative costs, and iii) other related cost saving measures. Aetrium Announces Lower Earnings Expectations and Special Charges for the Second Quarter The Asian crisis has had a deeper impact on the semiconductor industry and our customers than expected and will likely have a more prolonged impact ," said Joseph C. Levesque, president and chief executive officer. "The uncertain market prospects have caused us to take decisive actions to reduce expenses and increase operational efficiency. As part of that decision, we have reduced shipments in order to preserve our existing backlog. We operate more efficiently and profitably with a larger backlog, and our goal remains to preserve our existing backlog, which currently exceeds 90 days of production."
