Aether Systems Revenue Outlook for Second Quarter Revised to Reflect Flat to Modest Growth.Business Editors/Hi-Tech Writers OWINGS MILLS, Md.--(BUSINESS WIRE)--June 26, 2001 Company Focuses on Path to Profitability & Cost Reductions, Anticipates Slight Quarterly Revenue Growth for Remainder of Year 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 the company will continue to focus on cost cutting and operational efficiencies while advising that revenue growth for the remainder of the year will be flat to modest. Aether maintains that while the interest level from corporate America for wireless and mobile solutions is gaining momentum - as evidenced by an increased number of requests for information and proposals from Aether - the macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. has made it difficult for potential customers to make technology investment decisions in the short term. At this time, Aether is focusing on cost-cutting measures and other activities geared toward improving operational efficiency in order to reduce planned expenses by as much as $78 million. These activities include:(a) -- Elimination of redundant and non value-added job positions -- Reduction in marketing spending -- Restructuring of Sila Communications, Aether's European venture -- Reduction in capital spending -- Reduction in operating expenses "These are tough times and Aether is feeling the negative effects of a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. economic downturn," said 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. "Throughout the company, we are streamlining operations and reducing spending. When the economy recovers, we will be poised for growth. Even during these difficult times, we are still seeing growth in our customer base and in our pipeline for new business. We remain comfortable with our target date of Q3 2002 to reach 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 (b) positive status. At that time, we expect to have nearly $550 million in cash and cash equivalents and will be prepared to further extend our leadership position in an emerging field." The company has issued this press release to communicate preliminary information in order to ensure compliance with Regulation FD. However, management will be collecting additional data before providing further details. The company expects to provide updated information during the Q2 2001 conference call planned for early August. (a) For additional information about Aether's business model and path to profitability, please visit www.aethersystems.com and click on Investor Relations Investor relations The process by which the corporation communicates with its investors. . (b) EBITDA - 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, Inc. Aether Systems helps enterprise customers improve efficiency and profitability by providing the services, software and support necessary to extend existing and future business applications from the desktop to any wireless device. Through Aether Fusion(TM), Aether's wireless enabling technology foundation, Aether develops, deploys and manages wireless solutions built on industry standard technology and backed by Aether's expertise in wireless hosting, software and services. Aether provides the business world with a single source for reliable, scalable and cost effective wireless solutions. For more information, please visit www.aethersystems.com. This press release contains 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In particular, 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . 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 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. , 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. |
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