Far East Slowdown Impact on ORBIT/FR, Inc.
18 February 1998
Far East Slowdown Impact on ORBIT/FR, Inc.HORSHAM, Pa., Feb. 17 -- ORBIT/FR, Inc. today announced that based on currently available financial information, the Company expects that principally as a result of the slowdown in revenues from the Far East, its revenues for the fourth quarter of 1997 will be materially lower than expectations. The decline in revenues from the Far East for the quarter was offset, in part, by continued strong revenues from the United States and Europe. The Far East accounted for approximately 23% of the Company's revenues for the first nine months of 1997. The Company believes that revenues from the Far East will be approximately 2% of the Company's revenues in the first quarter of 1998. New orders from the Far East for the fourth quarter of 1997 were significantly lower in comparison to the fourth quarter of 1996. Based on this information, the Company believes that the growth expectations for the Company for the first half of 1998 will be affected by the slowdown in the Far East, but the Company believes that such slowdown should not impact growth expectations for the second half of 1998. The Company separately also announced today that it has agreed to acquire RDL, Inc., a supplier of sophisticated microwave test and measurement products to the wireless communications and cable television industries and of microwave defense systems. ORBIT/FR, Inc. develops, markets and supports sophisticated automated microwave test and measurement systems for the wireless communications, satellite, automotive and aerospace/defense industries. Certain information in this press release, including the statements regarding revenues and profits for 1997 and 1998, constitutes forward-looking statements pertaining to the future anticipated growth and profitability of ORBIT/FR, Inc. In accordance with the Private Securities Litigation Reform Act of 1995, all such forward looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors that could impact results are included in the company's filings with the Securities and Exchange Commission, including the prospectus relating to the Company's initial public offering. SOURCE ORBIT/FR, Inc.