EXHIBIT 99.1
[EMS TECHNOLOGIES LOGO] NEWS RELEASE
April 10, 2003
EMS TECHNOLOGIES ANNOUNCES
PRELIMINARY FIRST QUARTER 2003 RESULTS
AND CONFERENCE CALL
EMS Technologies, Inc. (Nasdaq - ELMG) today announced that its financial
results are expected to be approximately breakeven for the first quarter of 2003
on consolidated revenues of approximately $67 million, as compared with earnings
for the first quarter of 2002 of $2 million, or $.20 per share, on revenues of
$70 million. There will be a conference call at 9:00 am EDT on Friday, April 11,
2003, for management to discuss these preliminary first quarter results;
conference call details are provided at the end of this press release.
Preliminary results indicate that all but one of the Company's main
operations were profitable, with especially good results from LXE, which
reported growth in export sales, as well as SATCOM and the Atlanta-based Space &
Technology unit, both of which reported increased sales to U.S. defense markets.
However, the Company's Montreal-based Space & Technology unit serves mainly
commercial space markets, which are currently experiencing very difficult
conditions, and this unit reported a loss of approximately $2.7 million for the
first quarter of 2003, as compared with a $590,000 quarterly profit one year
earlier.
Alfred G. Hansen, president and chief executive officer, commented, "A
key part of our business strategy has been to establish EMS as a leader in
several wireless communications markets. We believe this diversity has helped
reduce risk and provided a firm base for steady financial achievement. This
strategy was important to the financial success of the recently concluded 2002
fiscal year, where tough conditions in some markets were offset by growth
opportunities in others. And this strategy was absolutely crucial to our ability
to report the preliminary breakeven consolidated results in the first quarter of
2003, even while absorbing a major loss from commercial space-related
operations.
"Considering today's uncertain worldwide economy, I believe the
combined profitable financial results (approximately $2.7 million profit after
tax) in four of our five main business units are as important to understanding
the first quarter as our difficulties in commercial space:
- LXE achieved record first-quarter revenues because a stronger
Euro helped spark capital spending in our European markets,
and our product line, which we believe is best-of-kind,
continues to be exceptionally competitive.
- SATCOM revenues also exceeded expectations, with our
high-speed-data (HSD) products playing prominent roles in the
war effort, ranging from video communications among mobile
military forces, to live coverage by embedded news reporters
on the move with coalition troops.
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April 10, 2003
- Our Atlanta-based Space & Technology operations, which mainly
support defense markets, also had a solid first quarter.
Certainly our Atlanta employees have taken great pride
recently in EMS's major contributions to many of the key
defense systems for surveillance, communications and
electronic warfare currently in use by U.S. forces.
- Given the slowdown in the telecommunications industry, it is
particularly remarkable that EMS Wireless was able to report a
profit. EMS Wireless continues to be a leading supplier of
base-station antennas and is expanding its presence in
repeater applications.
"Our balance sheet remains in good shape. Debt was essentially
unchanged from the end of 2002.
"The results for our Montreal-based Space & Technology operations
mirror the problems in the commercial space markets, where orders have slowed,
budgets have tightened, and schedules have slipped. To address the effects on
EMS of these market conditions, we had already begun a major plan of
restructuring in late 2002. As these difficult conditions persisted and
intensified in 2003, we took additional measures, including a recent reduction
in the compensation cost structure at Montreal. Our short-term goal is to
sharply reduce the level of losses at Montreal while maintaining the core
organization necessary to quickly accelerate when commercial space market
activity resumes. We also believe that our actions will result in a rate
structure that will provide a long-term competitive advantage for future
business opportunities. We will continue to identify and evaluate the emerging
risks and opportunities in our commercial-space business, and we will take still
further actions as needed."
CONFERENCE CALL DETAILS
There will be conference call at 9:00 am EDT on Friday, April 11, 2003, for
Alfred G. Hansen, president and chief executive officer, and Don T. Scartz,
chief financial officer to discuss preliminary results for the first quarter of
2003. Management will also take questions from the participants. Management will
not provide guidance about expected results for the remainder of 2003 until the
conference call later in the month when final results for the first quarter will
be released.
To participate in this conference, please call 800-219-6110 (international
callers use 303-262-2075) within approximately 10 minutes before the call is
scheduled to begin. The conference identification number is 535224.
A taped replay of the conference call will also be available through Friday,
April 18, 2003 by dialing 800-405-2236 (international callers use 303-590-3000)
and entering the following code: 535224.
The Company expects to announce its final results for the first quarter during
the week of April 21, 2003. Details regarding this conference call will be
provided in a separate press release.
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April 10, 2003
The following preliminary financial data for 2003 are based on the Company's
initial analysis of operating results and are subject to change as more
financial information becomes available.
EMS Technologies, Inc.
Summary of Preliminary Financial Data
(in thousands)
(Preliminary)
1st Quarter 1st Quarter
2003 2002
----------- ------------
REVENUES
Space & Technology / Atlanta $ 12,000 11,707
Space & Technology / Montreal 10,200 18,264
LXE 22,000 19,885
EMS Wireless 8,800 12,733
SatCom 10,500 6,305
Other 3,000 1,545
--------- ------
Total $ 66,500 70,439
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OPERATING INCOME (LOSS)
Space & Technology / Atlanta $ 1,000 632
Space & Technology / Montreal (3,000) 605
LXE 1,300 694
EMS Wireless 100 907
SatCom 1,500 853
Other (300) (55)
--------- ------
Total $ 600 3,636
========= ======
NET EARNINGS (LOSS)
Space & Technology / Atlanta $ 500 289
Space & Technology / Montreal (2,700) 590
LXE 800 286
EMS Wireless 50 506
SatCom 1,200 714
Other & Corporate 150 (273)
--------- ------
Total $ - 2,112
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April 10, 2003
EMS TECHNOLOGIES, INC. is a leading provider of technology solutions to wireless
and satellite markets. The Company focuses on mobile information users, and
increasingly on broadband applications. The Company is headquartered in Atlanta,
employs nearly 1,700 people worldwide, and has manufacturing facilities in
Atlanta, Montreal, Ottawa and Brazil.
The Company has four main families of products...
- - SPACE & TECHNOLOGY antennas and other hardware, for space and satellite
communications, radar, surveillance, military countermeasures, and other
specialized uses. Products from the Atlanta operations are sold mainly in
defense markets, and products from the Montreal operations are sold mainly to
commercial space markets;
- - LXE mobile computers and wireless local area networks, for materials
handling and logistics;
- - EMS WIRELESS base station antennas and repeaters, for PCS/cellular
telecommunications; and
- - SATCOM antennas and terminals, for aeronautical and land-mobile
communications via satellite.
Statements contained in this press release regarding the potential for various
businesses and products are FORWARD-LOOKING STATEMENTS. Actual results could
differ from those statements as a result of a wide variety of factors. Such
factors include, but are not limited to...
- - economic conditions in the U.S. and abroad and their effect on capital
spending in the Company's principal markets;
- - volatility of foreign exchange rates relative to the U.S. dollar and
their effect on purchasing power by international customers, as well as
the potential for realizing foreign exchange gains or losses associated
with net foreign assets held by the Company;
- - successful resolution of technical problems, potential scope changes or
potential funding changes that may be encountered on contracts;
- - successful completion of technological development programs by the
Company and the effects of technology that may be developed by
competitors;
- - successful transition of products from development stages to an
efficient manufacturing environment;
- - customer response to new products and services, and general conditions
in our target markets (such as logistics, PCS/cellular telephony, and
space-based communications);
- - the availability of financing for satellite data communications systems
and for expansion of terrestrial PCS/cellular phone systems;
- - the extent to which competing terrestrial systems reduce market
opportunities for space-based broadband communication systems by
providing extensive broadband Internet access on a dependable and
economical basis;
- - the growth rate of demand for various mobile and high-speed
communications services;
- - development of successful working relationships with local business and
government personnel in connection with distribution and manufacture of
products in foreign countries;
- - the Company's ability to attract and retain qualified personnel,
particularly those with key technical skills; and
- - the availability of sufficient additional credit or other financing, on
acceptable terms, to support the Company's expected growth.
Additional relevant factors and risks are identified in the Company's Annual
Report on Form 10-K for the year ended December 31, 2002.
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