Carrier Access Announces Anticipated Third Quarter Results; Settlement Reached in SMTC Lawsuit.BOULDER, Colo. -- Carrier Access Corporation (Nasdaq:CACS CACS Center for Advanced Computer Studies CACS Computer Audit, Control and Security CACS Carrier Access Corporation (stock symbol) CACs Criteria Air Contaminants CACS Center for Alaskan Coastal Studies CACS Coronary Artery Calcium Scoring ), a leading provider of communications access technologies, today announced it expects fiscal 2004 third quarter revenues to be in the range of $21 million to $22 million (as compared with its previous expectations of revenues in the range of $24 million to $26 million.) As a result, the Company anticipates a net loss for the third quarter in the range of $0.07 to $0.10 per share, which includes recording a charge for the quarter in the amount of $2.1 million to reflect the settlement amount and legal expenses associated with the settlement of the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with SMTC SMTC Southern Maine Technical College SMTC Science/Mathematics/Technology Center (Central Michigan University) SMTC Saluda Mountain Telephone Company (Knoxville, Tennessee) SMTC Short-To-Medium Term Control Manufacturing Corporation of Colorado. "As we stated in our Sept. 8, 2004, press release, recent GSM-based operator consolidation activity put significant pressure on our third quarter revenues," said Roger Koenig, president, 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. and chairman, Carrier Access. "That, combined with the timing of certain orders, impacted our top line more than we previously anticipated. In addition, the settlement of the SMTC lawsuit will impact our bottom line by approximately $.06 per share. We believe the settlement is in the best interest of the Company to avoid the risks and expenses associated with litigation." "Despite these current events, we believe the long-term market fundamentals of optimizing wireless access infrastructure continue to be positive. As operators complete their consolidation, we believe our revenue and earnings will improve. We are focused on enhancing our market position in both wireless and Voice over IP access and improving our financial performance," Koenig said. These preliminary results are based on executive management's initial analysis of third quarter operating results. The Company will announce its final results for the third quarter of fiscal 2004 on Tuesday, Oct. 19, 2004, at 4:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . Investors may listen to a live audio webcast of the conference call at www.carrieraccess.com. Additionally, Koenig is scheduled to present at the Credit Suite First Boston First Boston Corporation was a New York-based investment bank, founded in 1932 and acquired by Credit Suisse in 1988, when it became 'CS First Boston'. Globally referred to as Credit Suisse First Boston after 1996, the First Boston part of the name was phased out in 2006. Technology Conference on Nov. 30, 2004, in Scottsdale, Ariz.. Investors may listen to a live audio webcast of the presentation at www.carrieraccess.com. Background On Aug. 16, 2002, SMTC Manufacturing Corporation of Colorado filed a breach of contract claim, and other related claims, for a total of $13.4 million against Carrier Access in Federal District Court, County of Adams, Colorado, based on an inventory-purchasing dispute. On Oct. 17, 2002, Carrier Access filed a breach of contract counterclaim A claim by a defendant opposing the claim of the plaintiff and seeking some relief from the plaintiff for the defendant. A counterclaim contains assertions that the defendant could have made by starting a lawsuit if the plaintiff had not already begun the action. , and other related counterclaims for $1.0 million. On Dec. 5, 2002, Carrier Access amended its counterclaim to seek damages of $27.0 million. Trial was scheduled in November 2004. About Carrier Access Corporation Carrier Access (NASDAQ: CACS) provides consolidated access technology designed to streamline the communication network operations of service providers, enterprises and government agencies. Carrier Access products enable customers to consolidate and upgrade access capacity, and implement converged IP services while lowering costs and accelerating service revenue. Carrier Access' technologies help our customers do more with less. For more information, visit www.carrieraccess.com. Forward-Looking Statement 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. Caution This press release contains forward-looking statements about our anticipated 2004 third quarter operating results and our long term prospects for growth, as well as our growth prospects in wireless and Voice over IP. These statements are subject to risks and uncertainties, including potential discrepancies between management's initial estimates and the final operating results for the third quarter of fiscal 2004. We caution that our growth prospects and our actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, consolidation among our customer base, continuing uncertainty regarding general economic conditions, changes in capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. by carriers and telecommunications companies See telecom company. , market acceptance of our products, problems with or at our customers, distributors, OEM's and/or suppliers, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. within our industry, the financial stability of our customers, the introduction of new competition and technologies, and other risks and uncertainties including those factors discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2003, and other documents periodically filed with the Securities and Exchange Commission. We do not undertake any obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise. |
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