Corning to Discontinue Wavelength Switching and Blocking Product Lines; Plans Include Closure of Fountain Valley California Facility.Business Editors CORNING, N.Y.--(BUSINESS WIRE)--Feb. 13, 2003 Corning Incorporated Corning Incorporated NYSE: GLW is an American manufacturer of glass, ceramics and related materials, primarily for industrial and scientific applications. The company was known until 1989 as Corning Glass Works. (NYSE NYSE See: New York Stock Exchange :GLW GLW Glasgow Airport (UK) GLW Gross Laden Weight GLW Good Lady Wife (Australia) ) today announced that it will discontinue commercialization of its wavelength switch and wavelength blocker product lines. In conjunction with this decision, the company has announced that it will be closing its Fountain Valley, California Fountain Valley is a city in Orange County, California, United States. The population was 54,978 at the 2000 census. History The city was incorporated in 1957, before which it was known as Talbert (also as Gospel Swamp). facility. As part of its plan to restore profitability in 2003, Corning has determined that it needs to take another step to rationalize product lines and improve the positioning of its photonics technologies business. This decision extends solely to the wavelength blocking and wavelength switching product lines. Corning is working with its customers to resolve pending commercial obligations. The actions associated with this decision are targeted to be complete by mid-year 2003. "Corning pioneered the technical and commercial development of these products. We led the market in volume production, shipping more units than all of our competitors combined in the Wavelength Blocker product line," said Mark Newhouse, vice president New Products and Development. "However, it has become evident that the current market for these products is smaller and further out than anticipated." James B. Flaws, Corning's vice chairman and chief financial officer referenced today's actions at the company's annual investor conference in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on Friday, February 7th. At that time, Flaws said Corning would continue to narrow its photonics product line. Corning anticipates this action will result in pre-tax charges of $20 to $30 million in the company's first half results. About Corning Incorporated Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies that offer growth opportunities in markets that fuel the world's economy. Corning manufactures optical fiber, cable and photonic Dealing with light (photons). See photon and photonics. products in its Telecommunications segment. Corning's Technologies segment manufactures high-performance display glass, and products for the environmental, life sciences and semiconductor markets. Forward-Looking and Cautionary Statements This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes or fluctuations in global economic conditions; currency exchange rates; product demand and industry capacity; competitive products and pricing; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; 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 larger customers in the telecommunications industry and other business segments; the mix of sales between premium and non-premium products; possible disruption in commercial activities due to terrorist activity and armed conflict; ability to obtain financing and capital on commercially reasonable terms; acquisition and divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). activities; the level of excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. ; the ability to enforce patents; product and components performance issues; and 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. . These and other risk factors are identified in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events. |
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