Vari-L Company Provides Guidance on Future Revenues

Apr 19, 2001, 01:00 ET from Vari-L Company, Inc.

    DENVER, April 19 /PRNewswire/ -- Vari-L Company, Inc. (OTC: VARL), a
 leading provider of advanced components for the wireless telecommunications
 industry, today said that slowing growth in the wireless communications sector
 is expected to impact the Company's revenues beginning in the second half of
 fiscal 2001.
     Pappas said the slowdown in the wireless industry and the economy in
 general has caused some OEM's to re-examine their cost structure and to seek
 price concessions from component vendors like Vari-L.  As a result, Vari-L has
 reduced prices for some of its larger OEM customers that are expected to
 result in lower revenue in the second half of fiscal 2001 and into the new
 fiscal year.  The Company currently forecasts a decline in revenues of
 approximately 15% to 25% as compared with the immediately preceding six-month
 period.  For the quarter ended March 31, 2001, the Company plans to report
 revenues of approximately $10 million, which will be eight percent less than
 revenues reported in the quarter ended December 31, 2000.  Pappas noted that,
 despite the slowdown, revenues in fiscal 2001, which ends June 30, 2001, are
 anticipated to be approximately 25% to 35% higher than the comparable
 twelve-month period ended June 30, 2000.
     "While our short term growth rate is unclear due to a variety of market
 forces, over the long term we are confident that demand for our products and
 services will grow as wireless communications infrastructure is expanded
 around the world," Pappas added.  "In the meantime, we will continue to
 enhance and expand on our technology, seek new markets for our products and
 provide our customers with superior customer service.
     "Due to a variety of factors, including uncertainty in the wireless
 industry and the economy, as well as the ongoing shareholder litigation
 process, we are not prepared to make any specific revenue or profitability
 forecasts at this time," Pappas said.
 
     Headquartered in Denver, Vari-L designs, manufactures and markets wireless
 communications components that generate or process radio frequency (RF) and
 microwave frequency signals.  Vari-L's patented products are used in
 commercial infrastructure equipment (including cellular/paging/PCS base
 stations and repeaters, fixed terminal point to point/multi-point data radios
 including LMDS/MMDS), consumer subscriber products (advanced
 cellular/PCS/satellite handsets, web-enabled smart phones, 2-way pagers,
 wireless PDAs, home networking), and military/aerospace platforms (satellite
 communications/telemetry, missile guidance, electronic warfare, electronic
 countermeasures, battlefield communications).  Vari-L serves a diverse
 customer base of the world's leading technology companies, including Adaptive
 Broadband, Agere, Agilent Technologies, Digital Microwave, Ericsson, Glenayre
 Technologies (Wireless Access), Boeing Satellite Systems, Harris, Lockheed
 Martin, Lucent Technologies, Microwave Data Systems, Mitsubishi, Motorola,
 NEC, NeoPoint, Netro, Nokia, Novatel Wireless, Raytheon, and Siemens.
 
     Some of the statements contained in this news release are forward-looking
 statements.  The accuracy of these statements cannot be guaranteed as they are
 subject to a variety of risks, including but not limited to general economic
 conditions in the United States and the overseas markets served by the
 Company, the success of the products into which the Company's products are
 integrated, governmental action relating to wireless communications, licensing
 and regulation, the accuracy of the Company's internal projections as to the
 demand for certain types of technological innovation, competitive products and
 pricing, the success of new product development efforts, the timely release
 for production and the delivery of products under existing contracts, and the
 outcome of pending and threatened litigation and regulatory actions as well as
 other factors.
 
 

SOURCE Vari-L Company, Inc.
    DENVER, April 19 /PRNewswire/ -- Vari-L Company, Inc. (OTC: VARL), a
 leading provider of advanced components for the wireless telecommunications
 industry, today said that slowing growth in the wireless communications sector
 is expected to impact the Company's revenues beginning in the second half of
 fiscal 2001.
     Pappas said the slowdown in the wireless industry and the economy in
 general has caused some OEM's to re-examine their cost structure and to seek
 price concessions from component vendors like Vari-L.  As a result, Vari-L has
 reduced prices for some of its larger OEM customers that are expected to
 result in lower revenue in the second half of fiscal 2001 and into the new
 fiscal year.  The Company currently forecasts a decline in revenues of
 approximately 15% to 25% as compared with the immediately preceding six-month
 period.  For the quarter ended March 31, 2001, the Company plans to report
 revenues of approximately $10 million, which will be eight percent less than
 revenues reported in the quarter ended December 31, 2000.  Pappas noted that,
 despite the slowdown, revenues in fiscal 2001, which ends June 30, 2001, are
 anticipated to be approximately 25% to 35% higher than the comparable
 twelve-month period ended June 30, 2000.
     "While our short term growth rate is unclear due to a variety of market
 forces, over the long term we are confident that demand for our products and
 services will grow as wireless communications infrastructure is expanded
 around the world," Pappas added.  "In the meantime, we will continue to
 enhance and expand on our technology, seek new markets for our products and
 provide our customers with superior customer service.
     "Due to a variety of factors, including uncertainty in the wireless
 industry and the economy, as well as the ongoing shareholder litigation
 process, we are not prepared to make any specific revenue or profitability
 forecasts at this time," Pappas said.
 
     Headquartered in Denver, Vari-L designs, manufactures and markets wireless
 communications components that generate or process radio frequency (RF) and
 microwave frequency signals.  Vari-L's patented products are used in
 commercial infrastructure equipment (including cellular/paging/PCS base
 stations and repeaters, fixed terminal point to point/multi-point data radios
 including LMDS/MMDS), consumer subscriber products (advanced
 cellular/PCS/satellite handsets, web-enabled smart phones, 2-way pagers,
 wireless PDAs, home networking), and military/aerospace platforms (satellite
 communications/telemetry, missile guidance, electronic warfare, electronic
 countermeasures, battlefield communications).  Vari-L serves a diverse
 customer base of the world's leading technology companies, including Adaptive
 Broadband, Agere, Agilent Technologies, Digital Microwave, Ericsson, Glenayre
 Technologies (Wireless Access), Boeing Satellite Systems, Harris, Lockheed
 Martin, Lucent Technologies, Microwave Data Systems, Mitsubishi, Motorola,
 NEC, NeoPoint, Netro, Nokia, Novatel Wireless, Raytheon, and Siemens.
 
     Some of the statements contained in this news release are forward-looking
 statements.  The accuracy of these statements cannot be guaranteed as they are
 subject to a variety of risks, including but not limited to general economic
 conditions in the United States and the overseas markets served by the
 Company, the success of the products into which the Company's products are
 integrated, governmental action relating to wireless communications, licensing
 and regulation, the accuracy of the Company's internal projections as to the
 demand for certain types of technological innovation, competitive products and
 pricing, the success of new product development efforts, the timely release
 for production and the delivery of products under existing contracts, and the
 outcome of pending and threatened litigation and regulatory actions as well as
 other factors.
 
 SOURCE  Vari-L Company, Inc.