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Technology Stocks : Spectrum Signal Processing (SSPI) -- Ignore unavailable to you. Want to Upgrade?

To: nord who wrote (2235)	2/17/1999 8:50:00 PM
From: jask	Read Replies (1) \| Respond to of 4400

Response from SSPIF regarding summary of what has been accomplished to enhance shareholder value...... Thank you for your email. Your question is very timely as we released our earnings yesterday and hosted our first conference call with investors for 1999. There were certainly a number of factors at play last year that influenced the final revenue and earnings numbers, however Spectrum built a considerable amount of value into the company last year that will strengthen its leadership position in the DSP systems marketplace over the long term. - We moved away from low-margin licensed products, to selling our own, higher margin internally developed products - Texas Instruments released the new C6x chip in the third quarter, and Spectrum met its goal of being first to market with a functioning product that has been very well received by customers as the 41 design-ins for the year show. - We acquired Alex Computer Systems which diversified our product base and enabled us to offer customers products based on Analog Devices' SHARC chip - We opened on office in Europe so that we could expand our global market share, and we have recently received our largest order there to date. - We took steps twoard increaing our penetration to OEMs, which is typically a 12-18 month cycle. - We restructured costs in the fourth quarter to ensure that our costs were more in line with expected revenues in the current marketplace, and these costs cuts are already bearing fruit. The transition to new product lines was key for our long term growth, however this created a revenue lag as customers waited for the new technology. The economic crisis in Asia caused many of our OEM customers to delay or cut back on orders due to their own uneasiness about the market place, making revenue more difficult to predict. That being said, we did not meet our investors expectations in 1998. Going forward we are focusing on the things that we can control and that add value to the company, so that as the market returns to historic growth rates we will be at the front of the pack. I hope my response addresses some of your concerns. Please do not hesitate to contact me. If you would like me to add your name to our email distribution list for news releases and conference call announcements, please let me know. Sincerely, Karen Elliott