Andrew Corporation has revised its financial statements for the 2003 and
2004 fiscal years and for the first three quarters of fiscal 2005 in
response to the three issues raised during a periodic Securities and
Exchange Commission review which were previously disclosed in the
company's last quarterly earnings announcement on October 27, 2005.
Two of the three issues--the timing of a $19.8 million product recall
charge in 2005 and a change in the company's segment reporting--have no
impact on the company's full year net income, earnings per share, or
financial position as previously reported. The third issue relates to
the timing of revenue recognized on a customer contract for the sale of
geolocation products, which Andrew acquired from Allen Telecom in July
2003. The aggregate impact on revenue over the period July 2003 through
September 2005 was a reduction of $12.5 million, with a decrease in
earnings of $0.01 per share in fiscal 2003 and $0.02 per share in fiscal
2004. In addition, the company has recorded an increase of $0.01 per
share in fiscal 2005, relative to the earnings originally reported on
October 27, 2005.
Complete details and restated financial results for all affected periods
are contained in Andrew's Form 10-K for the fiscal year ended September
30, 2005, filed with the SEC yesterday, and is available at www.andrew.com.
Andrew Corporation (NASDAQ:ANDW) designs, manufactures and delivers
innovative and essential equipment and solutions for the global
communications infrastructure market. The company serves operators and
original equipment manufacturers from facilities in 35 countries. Andrew
headquartered in Orland Park, IL, is an S&P 500 company founded in 1937.
Forward Looking Statements
Some of the statements in this news release are forward looking
statements and we caution our stockholders and others that these
statements involve certain risks and uncertainties. Factors that may
cause actual results to differ from expected results include
fluctuations in commodity costs, the company's ability to integrate
acquisitions and to realize the anticipated synergies and cost savings,
the effects of competitive products and pricing, economic and political
conditions that may impact customers' ability to fund purchases of our
products and services, the company's ability to achieve the cost savings
anticipated from cost reduction programs, fluctuations in foreign
currency exchange rates, the timing of cash payments and receipts, end
use demands for wireless communication services, the loss of one or more
significant customers, and other business factors. Investors should also
review other risks and uncertainties discussed in company documents
filed with the Securities and Exchange Commission.