SAN JOSE, Calif., Jan 07, 2009 (BUSINESS WIRE) -- Endwave Corporation (NASDAQ:ENWV) today provided an updated revenue estimate for its fourth quarter of 2008. Management currently anticipates reporting fourth quarter revenues of approximately $10 million as contrasted with revenues of $12 to $13 million projected during their third quarter conference call on October 21, 2008.
"As discussed on our third quarter conference call, we expected a decline in total revenues during the fourth quarter due to weak demand from our telecommunications customers. However, the contraction in our telecom revenues has been larger than we had originally predicted," stated Ed Keible, President and Chief Executive Officer of Endwave. "While the Telecom market is weak, we continue to see and to capture important opportunities in the defense and security markets. Unfortunately, for 2009, we currently anticipate that our expected growth in defense and security markets will be more than offset by a decline in our telecom revenues. Therefore, we presently expect our total revenues in 2009 will be approximately 10% to 15% lower than 2008. We will provide a more detailed view of 2009 during our quarterly call at the beginning of February."
Commenting further on the fourth quarter, Brett Wallace, Executive Vice President and Chief Financial Officer added, "During Q4, we saw a rapid degeneration in market conditions for our telecom customers. We had a significant decrease in demand from Nokia Siemens Networks, our largest customer. In addition, one customer, Allgon Microwave AB, failed to pay Endwave for shipments made to Allgon and for inventory purchased by Endwave. Consequently, during the quarter, we filed a lawsuit in Montreal, Quebec against Advantech Advanced Microwave Technologies Inc., the parent company of Allgon Microwave AB. While we believe that we will prevail in our lawsuit, we also think it is prudent to reserve a portion of the approximately $800,000 currently in dispute. This reserve will be reflected in our Q4 financial statements."
Endwave will report financial results for the fourth quarter of fiscal 2008 ended December 31, 2008 on Tuesday, February 3, 2009 at 1:30 p.m. Pacific Time (PT). Endwave will release the company's financial results at approximately 1 p.m. PT on the same day. To listen to the live conference call, please dial (303) 262-2211 by 1:20 p.m. PT on February 3. Starting approximately one hour after the completion of the live call, a replay will also be available until February 10. To access the recording, dial (303) 590-3000 (Pass code: 11124548 #). Investors are also invited to listen to a live and/or archived webcast of Endwave's quarterly conference call on the investor relations section of the company's Web site atwww.endwave.com. The webcast replay will be available for 90 days.
