Aether Systems Reports First Half 2001 Trending Towards Its Financial Guidance; Aether Hosting an Analyst Day on April 18, 2001.Business Editors OWINGS MILLS, Md.--(BUSINESS WIRE)--April 16, 2001 Aether aether: see ether, in physics and astronomy. Aether god of whole atmosphere. [Gk. Myth.: Jobes, 42] See : Air Systems, Inc. (Nasdaq:AETH), a leading provider of wireless data products and services, today announced that management's review of preliminary Q1 2001 information as well as Q2 information to date are consistent with the financial guidance provided during the company's Q4 2000 earnings call held on February 7, 2001. Based on the above, the company announced the following: -- Q1 and Q2 revenue information remain inline with the $30 million and $37 million, respectively, communicated on the latest earnings call. -- Burn Rate -- Operating spending is trending better than guidance. -- Capital expenditures have been decreasing ahead of guidance. -- Cash Position -- The company's objectives for its M&A strategy have largely been met; therefore, the pace has slowed considerably in this area and there has been no new activity in 2001. -- After making non-recurring cash payments in Q1 (related to final payouts for acquisitions and investments made in fiscal year 2000), management remains comfortable with guidance projecting a cash position of at least $500 million at EBITDA(1) break-even, slated for Q3 2002. "We expect a 15-20 percent average quarterly sequential growth rate for the remainder of 2001," said Aether Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Dave Oros. "While slightly lower than our previously communicated growth rate for Q3 and Q4 of this year - given the existing market conditions - I am encouraged that we are still seeing double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" quarterly sequential growth for Aether's wireless data solutions. Aether has experienced favorable operating spending trends in our business. As a result, we remain comfortable with continued improvements in operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. excluding non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for fiscal year 2001, pursuant to our guidance." -- Analyst Day -- Aether is hosting an Analyst Day on Wednesday, April 18, 2001 at the Willard Inter-Continental Washington in Washington, D.C. -- A webcast of the event will be available at www.vcall.com and www.InvestorConference.com. The event is scheduled for 9 a.m. - 4 p.m. EST. Aether expects to release complete Q1 2001 results the week of May 7, 2001. A conference call to discuss Q1 2001 financial results and 2001 business outlook will be webcast live the morning after the release is issued and will contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and other material information. (1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become - earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
About Aether Systems Aether Systems, Inc., is a leading provider of wireless and mobile data products and services allowing real-time communications and transactions across a full range of devices and networks. Using its engineering expertise, the ScoutWare(TM) family of products including the Aether Intelligent Messaging An earlier messaging system from Banyan Systems that ran on NetWare and VINES servers and incorporated Banyan's popular Streettalk directory service. It included a basic mail program, which could be upgraded to the more advanced BeyondMail system. See ePresence. (AIM) software platform, and its network operations center See NOC. Network Operations Center - (NOC) A location from which the operation of a network or internet is monitored. Additionally, this center usually serves as a clearinghouse for connectivity problems and efforts to resolve those problems. and customer care-center, Aether seeks to provide comprehensive, technology-independent wireless and mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings solutions. Aether develops and delivers wireless data services across a variety of industries and market segments in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and internationally. For more information, please visit www.aethersystems.com. This press release contains statements based on a preliminary review by management of financial information for the first quarter of 2001. Actual results could differ materially for a variety of reasons and circumstances. In addition, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to a variety of uncertainties including whether preliminary information accurately reflects actual results, whether trends indicated to date continue into the future, and whether changes in business conditions, company strategy or other factors occur. Information about other specific factors that potentially could affect Aether's financial results, including non-cash charges, is included in Aether's filings with the Securities and Exchange Commission. Actual results could differ materially from those indicated in this release. Aether undertakes no obligation to update forward-looking statements set forth in this release. www.aethersystems.com |
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