UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
-------------------------------------------------
Date of Report (Date of earliest event reported): February 6, 1998
SAWTEK INC.
(Exact name of registrant as specified in its charter)
Florida
(State or other jurisdiction
of incorporation)
000-28276
(Commission File No.)
59-1864440
(IRS Employer Identification No.)
1818 South Highway 441
Apopka, Florida 32703
(Address of principal executive offices)
(407) 886-8860
(Registrant's telephone number, including area code)
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Item 5. Other Events.
Sawtek Inc. today commented on the potential impact of the
Korean market and other events.
Item 7. Financial Statements and Exhibits
Exhibit 99.1 Sawtek Inc. Press Release dated February 6, 1998
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
SAWTEK INC.
By: /s/ Raymond A. Link
Vice President Finance and
Chief Financial Officer
February 20, 1998
<PAGE>
Exhibit 99.1
NEWS RELEASE
Contact: Ray Link
Chief Financial Officer
Sawtek Inc.
Tel: 407/884-3344
Fax: 407/886-7061
E-mail: [email protected]
For Immediate Release
SAWTEK PROVIDES UPDATE OF KOREAN MARKET
IMPACT AND OTHER EVENTS
Orlando, Florida, February 6, 1998 ------- Sawtek Inc. (Nasdaq: SAWS) today
commented on the potential impact of the Korean market and other events.
Sawtek posted revenue of $24.2 million for the quarter ended December 31, 1997
which included approximately $5.3 million, or 22% of the total, from various
Korean customers. The Company's backlog in mid-January included approximately
20% of scheduled production for the January-March 1998 quarter of business from
Korean customers. The Company has recently received a request from a major
Korean customer for a partial cancellation of orders for this quarter and the
June 1998 quarter. The Company is still in negotiations with this customer and
is uncertain of the ultimate impact this request for partial order cancellation
may have on Sawtek's operating results.
Qualcomm Incorporated of San Diego, CA publicly announced on February 5, 1998
that it is reducing its order forecast for the Q-phone. Qualcomm and its joint
venture QPE, collectively have been a 10% customer for Sawtek in the past. To
date, Sawtek has not received any order cancellations from Qualcomm. At present,
the orders for filters for the Q-phone represent less than 1% of total backlog
and the Q-phone represented less than 1% of Sawtek's sales in the past and less
than 1% of projected revenue for the current fiscal year. Sawtek does supply
filters to Qualcomm and QPE for base station applications and the QCP model
phone. Qualcomm stated that demand for the QCP models remains strong.
Furthermore, Sawtek does not provide products to Qualcomm for Applications
Specific Integrated Circuits (ASICS). In summary, the Company believes that the
impact of the Qualcomm announcement will be minor to the Company's operating
results for the current quarter.
The Company's business from other customers in both the U.S. and Europe remains
strong and some of these customers have requested to accelerate shipments which
may offset the near-term impact of potential order cancellations from Korean
customers. The Company expects that revenue for the quarter ended March 1998
will exceed revenues for the quarter ended December 31, 1997.
Sawtek Inc. is a leading supplier of electronic signal processing components
based on surface acoustic wave ("SAW") technology. The Company's primary focus
is custom designed, high-performance bandpass filters, resonators, delay lines,
oscillators and SAW-based subsystems. These products are used in a wide array of
microwave and radio frequency systems such as CDMA and GSM-based digital
telephone systems, digital microwave radios, wireless local area networks, cable
television, and a variety of defense and satellite systems.
Sawtek trades on the Nasdaq National Market under the symbol "SAWS."
<PAGE>
Forward-looking statements in this release are made pursuant to the Safe Harbor
provisions of the Private Securities Litigation Act of 1995. Investors are
cautioned that such forward-looking statements involve risks and uncertainties,
such as statements of the Company's plans, objectives, expectations and
intentions. The cautionary statements made in this release should be read as
being applicable to all related forward-looking statements wherever they appear
in this release. The Company's actual results could differ materially from those
discussed. Factors that could cause or contribute to such differences include
the following: the Company's dependence on continuing demand for wireless
communications services and CDMA technology, particularly CDMA handset units;
economic recessions in the Asia-Pacific region or other geographic areas of the
world; dependence on a limited number of customers, which are expected to
continue to account for a high percentage of the Company's future net sales;
fluctuations in the Company's quarterly results and backlog which may be caused
by such factors as product mix changes, price competition, availability of
manufacturing capacity, and customer order cancellation or rescheduling; the
Company's dependence on its timely development of new or improved SAW products
(such as SAW chemical sensors) to meet changing market needs; the risk of
competing technologies which could replace or reduce the use of SAW technology
for certain applications, as well as other risks as discussed in Sawtek's SEC
reports, including Form 10-K filed for fiscal year 1997 and Form 10-Q filed for
the quarter ended December 31, 1997.
