Endwave Corporation (Endwave) has provided an outlook for the fourth quarter of 2008. The company expects revenues to be around $10 million for the fourth quarter of 2008, compared with the revenues of $12 to $13 million projected during their third quarter of 2008. The company will declare its fourth quarter of 2008 results on Tuesday, February 3, 2009 at 1:30 p.m. Pacific Time (PT).
As discussed on our third quarter conference call, we expected a decline in total revenues during the fourth quarter due to weak demand from our telecommunications customers. However, the contraction in our telecom revenues has been larger than we had originally predicted, stated Ed Keible, president and chief executive officer of Endwave. While the Telecom market is weak, we continue to see and to capture important opportunities in the defense and security markets. Unfortunately, for 2009, we currently anticipate that our expected growth in defense and security markets will be more than offset by a decline in our telecom revenues. Therefore, we presently expect our total revenues in 2009 will be approximately 10% to 15% lower than 2008. We will provide a more detailed view of 2009 during our quarterly call at the beginning of February.
Commenting further on the fourth quarter, Brett Wallace, executive vice president and chief financial officer added, During Q4, we saw a rapid degeneration in market conditions for our telecom customers. We had a significant decrease in demand from Nokia Siemens Networks, our largest customer. In addition, one customer, Allgon Microwave AB, failed to pay Endwave for shipments made to Allgon and for inventory purchased by Endwave. Consequently, during the quarter, we filed a lawsuit in Montreal, Quebec against Advantech Advanced Microwave Technologies Inc., the parent company of Allgon Microwave AB. While we believe that we will prevail in our lawsuit, we also think it is prudent to reserve a portion of the approximately $800,000 currently in dispute. This reserve will be reflected in our Q4 financial statements.