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Wireless Facilities, Inc.

Wireless Facilities Comments on Metricom News


SAN DIEGO, CA Ð July 2, 2001
- Wireless Facilities, Inc. (WFI) (NASDAQ: WFII), a global leader in the planning, design, deployment and management of wireless voice and data networks, today said that one of its former customers, Metricom, Inc. (NASDAQ: MCOM), has filed for bankruptcy protection. On February 23, 2001, WFI publicly announced that it had received notice of contract suspension and termination from Metricom for WFI's engineering and deployment services.

In response to the Metricom bankruptcy filing, the Company anticipates that it will take a one time charge and reserve for the entire Metricom receivable of $13.6 million in the second quarter of fiscal 2001. The Company reiterates its earlier guidance that no material revenues from Metricom were anticipated in the second half of the year.

Commenting on the news, WFI President Tom Munro said, "Despite several broadband wireless carrier bankruptcies, the basic fundamentals of mobile wireless telephony remain encouraging for the long-term. Growth in net subscriber additions and growth in subscriber minutes of use were strong in the most recently reported period and we believe this bodes well for future infrastructure investments to support demand for 2G wireless voice services alone. In addition to this, the decision by wireless carriers to provide consumers and business customers with always-on data services over enhanced networks late this year or next year, should help create increasing demand for network design and deployment services."

About Wireless Facilities
A global leader in telecommunications outsourcing, Wireless Facilities, Inc. designs, deploys and manages wireless networks for some of the largest cellular, PCS and broadband wireless carriers and equipment suppliers worldwide. Specializing in network architecture and dimensioning of mobile and high speed wireless data systems, including third generation (3G) networks, WFI provides a complete range of network services Ð from business and market planning to RF engineering, fixed network engineering, IP and data engineering, site acquisition and development, installation, optimization and maintenance. Headquartered in San Diego, WFI has grown to more than 2,000 employees and has performed work in over 100 countries since the company was founded in late 1994. The company has offices in Dallas, Chicago, Seattle, Reston VA, Montvale NJ, London, Gothenburg, Frankfurt, Madrid, Mexico City, S‹o Paulo and New Delhi. News and information are available at www.wfinet.com.

Notice Regarding Forward Looking Statements
This news release contains certain forward-looking statements that involve risks and uncertainties. The Company operates in a very dynamic market environment, and expectations or assumptions that appear reasonable as of the date hereof may not be reasonable at any point in the future. Words such as "anticipates," "expects," "projects," "intends," "plans," "believes," "may," "will," and similar expressions are intended to identify forward-looking statements and specifically include references to the Company's belief that the wireless industry's long-term fundamentals remain strong for the Company's services and that the Company can continue to execute its business plan well in relation to the market opportunities. Such statements are only predictions, and the Company's actual results may differ materially from those anticipated. Factors that may cause such differences, include, but are not limited to: slowdowns in telecommunications infrastructure spending which could delay network deployment and reduce demand for the Company's services; the Company's ability to hire and retain key personnel; the rate of adoption of telecom outsourcing by network carriers and equipment suppliers; the timing, rescheduling or cancellation of significant customer contracts and agreements, or the loss of key customers; continuing industry investment in next-generation wireless deployments; competition in the marketplace which could reduce revenues and profit margins; lower customer satisfaction levels for services performed by the Company. These factors and others are more fully discussed under "Risk Factors" and elsewhere in the Company's registration statement on Form S-1, the Company's annual report on Form 10-K filed on March 29, 2001 and the Company's Form 10-Q filed on May 15, 2001 with the Securities and Exchange Commission.

 

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