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): March 17, 1998
SYMMETRICOM, INC.
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(Exact name of registrant as specified in its charter)
California
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(State or other jurisdiction of incorporation or organization)
0-2287 95-1906306
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(Commission file number) (I.R.S. Employer Identification No.)
2300 Orchard Parkway, San Jose, California 95131-1017
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 408-943-9403
Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On March 17, 1998, the Company issued a press release commenting on the
financial outlook for its third quarter of fiscal 1998 ending March 31, 1998. A
copy of the press release is attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) and (b) - None
(c) Exhibits
99.1 SymmetriCom, Inc.'s Press Release dated March 17, 1998
2
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SIGNATURES
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 hereunto duly authorized.
SYMMETRICOM, INC.
(Registrant)
DATE: March 20, 1998 By:/s/ J. Scott Kamsler
J. Scott Kamsler
Senior Vice President, Finance
and Chief Financial Officer
(for Registrant and as Principal
Financial and Accounting Officer)
3
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EXHIBIT INDEX
Exhibit
Number Description
99.1 SymmetriCom, Inc.'s Press Release dated March 17, 1998
4
Exhibit 99.1
For information please call
Ed Lockwood
(408) 428-7845
SYMMETRICOM COMMENTS ON THIRD QUARTER OUTLOOK
San Jose, California, March 17, 1998 -- SymmetriCom, Inc. (NASDAQ:SYMM)
announced today that it expects to report net sales in the range of $24 million
to $25 million for its third fiscal quarter ending March 31, 1998 compared to
net sales of $34.3 million for the immediately preceding quarter, primarily due
to substantially lower sales in its semiconductor operation. As a result, the
Company estimates it will have a pre-tax loss (before a one-time charge) for the
quarter in the range of $2 million to $3 million. In addition, in view of
current and expected near-term levels of sales from the Company's semiconductor
operation, the Company anticipates taking a one-time pre-tax charge in its
current quarter of between $8 million and $12 million, principally relating to
an additional provision for inventory which the Company has been manufacturing
in recent periods in anticipation of a higher volume of sales in its
semiconductor operation that has not been realized. The Company is continuing to
adjust its production rate and reduce spending at its semiconductor operation in
order to cut costs, while at the same time preserving product and market
development programs.
The Company had previously disclosed in its Form 10-Q report for the second
fiscal quarter ended December 31, 1997 that, based on orders received for the
first half of the third quarter of fiscal 1998, the Company expected its net
sales and net earnings for the third quarter of fiscal 1998 to decline
significantly from the immediately preceding quarter, and had advised of
inventory risks due to increases in inventory levels in its semiconductor
operation in recent periods. The Company continues to experience low demand in
its semiconductor operation and cautions that sales will probably remain at a
low level in the fourth fiscal quarter of 1998 and perhaps beyond.
This press release contains forward-looking information within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and is subject to the safe harbor
created by those Sections. The Company's actual results could differ materially
from those projected in the forward-looking information. Some factors which
could cause future actual results to differ materially from the Company's
projected results in the forward-looking information are timing, cancellation or
delay of customer orders, delays in new product development, introduction and
production startup, increased competition, customer acceptance of new products,
economic conditions in the Pacific Rim region, customer delays in qualification
of key new products, the overall condition of the semiconductor industry and the
risk factors listed from time to time in
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the Company's reports, on file with the Securities and Exchange Commission,
including but not limited to, the report on Form 10-Q for the quarter ended
December 31, 1997 and the report on Form 10-K for the year ended June 30, 1997.
SymmetriCom, Inc. conducts its business through two separate operating units.
Telecom Solutions is a leading worldwide manufacturer of advanced network
synchronization systems for the telecommunications industry. The Company also
manufactures intelligent access systems. Its Navstar Systems Ltd. unit, based in
Northampton, England, designs and manufactures systems that use Global
Positioning System Technology to determine precise geographic location and time
and frequency measurements. Linfinity Microelectronics Inc. makes linear and
mixed signal standard and custom integrated circuits as well as modules
primarily for use in power management and communications applications in
commercial, industrial, and defense and space markets.
