FOR IMMEDIATE RELEASE
60 East 42nd Street, Suite 5010,
New York, NY 10165, 212-716-2000
Company Contact:
William J. Frost
Vice President - Administration
(212) 716-2000
investor.relations@edocorp.com
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FOR IMMEDIATE RELEASE |
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Company Contact: |
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EDO CORPORATION
UPDATES COMMENTS ON ITS
COMMUNICATION AND SPACE PRODUCTS SEGMENT
NEW YORK, NEW YORK - April 15, 2002 - EDO Corporation (NYSE:EDO) today provided an update to comments made earlier this year about its Communication and Space Products Segment.
"In our 2001 year-end earnings conference call held on February
21, 2002, we discussed the continuing weakness in EDO's space
sensor and communications products business. Subsequently, one
of our primary customers in this business has lowered its 2002
forecast for the quantity of Ku-Band down converters to be purchased
from us. This in turn has resulted in our reducing the quantity
of Ku-Band down converters produced and extending the period of
performance of our first production lot. The manufacturing inefficiencies
related to these reductions and extensions will result in an after-tax
charge of approximately $0.9 million, or $0.05 per diluted share,
in the first quarter. While we do not anticipate that business
will improve in the space sensor and communications products business
for the remainder of this year, we believe that we have adequately
provided for the impact of the lowered production levels.
"The remaining business in this segment and our two other
business segments, Defense and Engineered Materials, continue
to perform in accordance with our business plan," said Chief
Financial Officer Darrell Reed.
About EDO Corporation
EDO Corporation (www.EDOcorp.com)
supplies highly engineered products for governments and industry
worldwide, including advanced electronic, electromechanical and
information systems and engineered materials critical to the mission
success of its customers. The Company's Defense Segment provides
integrated front-line war fighting systems, including radar countermeasures
systems, aircraft weapons storage and release systems, airborne
mine countermeasure systems, and integrated combat systems and
sonar systems and professional, operational, technical and information
technology services. EDO's Space and Communication Segment addresses
the needs of the remote sensing, communication, navigation, and
electronic warfare industries with ultra-miniature electronics
and a broad line of antennas. The Company's Engineered Materials
Segment supplies piezoelectric and advanced composites for the
communication, navigation, chemical, petrochemical, paper and
oil industries, for civilian infrastructure and military applications.
Forward-Looking Statement
This press release
contains statements that are forward-looking statements as defined
in Section 27A of the Securities Act of 1933, as amended. These
statements are based on current expectations, estimates and projections
about the Company's business based, in part, on assumptions made
by management. These statements are not guarantees of future performance
and involve risks, uncertainties and assumptions that are difficult
to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements due to numerous factors, including those described
above and the following: changes in demand for the Company's products,
product mix, the timing of customer orders and deliveries, the
impact of competitive products and pricing, difficulties encountered
in the integration of acquired businesses and other risks discussed
from time to time in the Company's SEC filings and reports. In
addition, such statements could be affected by general industry
and market conditions and growth rates, and general domestic and
international economic conditions. Such forward-looking statements
speak only as of the date on which they are made, and the Company
does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of
this release.
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