WJ Communications Announces Preliminary Revenue Results for The Third Quarter Of 2007 and Revenue Guidance for The Fourth Quarter of 2007
Retained Thomas Weisel Partners To Evaluate Strategic Alternatives
SAN JOSE, Calif.--(BUSINESS WIRE) -- Oct. 10, 2007 -- WJ Communications, Inc. (Nasdaq: WJCI), a leading designer and supplier of radio frequency (RF) solutions for the wireless infrastructure and radio frequency identification (RFID) reader markets, today announced that it expects revenue for the third quarter ended September 30, 2007 to be in the range of $9.7 million to $9.9 million. Fourth quarter 2007 revenue is currently expected to be below analyst estimates and not a material improvement from the third quarter.
"While our scheduled business during the third quarter would have resulted in revenue that was within our previously provided guidance range, we experienced several operational challenges during the quarter that contributed to our lower than expected results," commented Bruce Diamond, President and Chief Executive Officer of WJ Communications. "Specifically, we experienced a shortage of lead frames late in the quarter due to several deliveries being rejected upon inspection by our assembly vendor. This issue has since been resolved, and we have resumed our shipment schedules."
"Looking to the fourth quarter, our current revenue outlook is based on initial indications by our customers that overall demand will be lower than previously expected. Also, it now appears that significant orders related to the TD-SCDMA build-out in China will not materialize until 2008. However, we remain excited about this opportunity and believe it will have a positive impact on our total revenue and financial results next year."
WJ also announced that its board of directors of has retained Thomas Weisel Partners LLC (TWP) to assist in the evaluation of strategic alternatives in order to maximize shareholder value.
Diamond concluded, "Our board of directors has determined that it is in the best interest of our shareholders to retain TWP to explore a range of strategic alternatives. We look forward to working with TWP to determine the best path for WJ and all of our key stakeholders."
WJ Communications expects to report third quarter 2007 financial results during the early part of November 2007; at which time a more detailed update to fourth quarter guidance will be provided. Conference call and web cast details will be publicly announced closer to the date of the event.
Forward-Looking Statements
This release and other statements by the Company in its announced conference call contain forward-looking statements including financial projections, statements as to the plans and objectives of management for future operations, and statements as to the Company's future economic performance, financial condition or results of operations. These forward-looking statements are not historical facts but rather are based on current expectations and our beliefs. Words such as "may," "will," "expects," "intends," "plans," "believes," "seeks," "could" and "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. The Company's actual results may differ materially from those projected in these forward-looking statements as a result of a number of factors, including, but not limited to, the actual performance by the Company in the third quarter, fourth quarter, all of fiscal 2007 and fiscal 2008, the timing and success of the TD-SCDMA build-out in China, the ability to ultimately enhance shareholder value through an evaluation of strategic alternatives and the risk factors contained in the Company's Form 10-K for year ended 2006, Form 10-Q and such other factors as described from time to time in the Company's filings with the Securities & Exchange Commission, which are available on the SEC's web site at www.sec.gov. Readers of this release are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise the forward-looking statements contained herein to reflect changed events or circumstances after the date of this press release.
About WJ Communications
WJ Communications, Inc. is a leading provider of radio frequency (RF) solutions serving multiple markets targeting wireless communications, RF identification (RFID), and WiMax. WJ addresses the RF challenges in these multiple markets with its highly reliable amplifiers, mixers, RF integrated circuits (RFICs), RFID reader modules, chipsets, and multi-chip (MCM) modules. For more information visit www.wj.com.
All trademarks used, referenced, or implicitly contained herein are used in good faith and highlighted to give proper public recognition to their respective owners
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Contacts:
WJ Communications, Inc.
Company Contact:
R. Gregory Miller, 408-577-6200
Chief Financial Officer
gregory.miller@wj.com
or
Media Contact
WJ Communications
Claudia Lin, 408-577-6341
Marcom and PR Manager
claudia.lin@wj.com
or
Investor Contact: For WJ Communications:
Shelton Group Investor Relations
Ryan Bright, 972-239-5119 ext. 159
rbright@sheltongroup.com
SOURCE: WJ Communications, Inc.