¶ PNS Downgrades expectations, anticipates a Loss...
PDSi Announces Second-Quarter Expectations
COLUMBUS, Ohio--(BUSINESS WIRE)--May 15, 2001--Pinnacle Data Systems, Inc. (PDSi) (AMEX:PNS - news), a leader in application-specific, high-density hardware and global support solutions for the world's leading original equipment manufacturers, today announced that in recent days, due to general economic conditions, several of its largest product customers have indefinitely postponed orders previously scheduled for the second quarter ending June 30, 2001. As a result, the company anticipates significantly lower revenue and expects to report a net loss of between five and nine cents per diluted share for the second quarter.
John Bair, PDSi president and chief executive officer, said, ``Due to the current economic downturn, our product customers are experiencing a significant slowdown in customer orders and, accordingly, are reducing their inventories. Although we expect this softness to be temporary, we cannot pinpoint exactly when the turnaround will occur. We are, however, working with our customers and suppliers to mitigate the effects of the decline. We are also redeploying some product division employees within the service division, which remains unaffected by the current slowdown.
``We continue to aggressively pursue development of new products, such as our recently announced TS1000 intelligent network product series. We are optimistic about this aspect of our business, as well as the strength of our relationship with current customers. As always, we will continue to pursue the strategy of targeting larger customers with larger projects in adding to our customer base.''
About PDSi
PDSi is a leading provider of high availability, board and system-level data transmission products and global service and support solutions for the telecommunications, enterprise and medical systems markets. Specializing in powerful, reliable and scalable Unix-based hardware platforms, PDSi offers a full range of design, manufacturing and integration services supported by comprehensive product lifecycle management programs encompassing depot repair, advanced exchange, contact center support and end-of-life control. For more information, visit the PDSi web site at www.pinnacle.com.
Safe Harbor Statement: Statements in this release which relate to other than strictly historical facts, including statements about the Company's plans and strategies, as well as management's expectations about new and existing products and services, technologies and opportunities, market growth, demand for acceptance of new and existing products and services are forward-looking statements. The words ``believe,'' ``expect,'' ``anticipate,'' ``estimate,'' ``project,'' and similar expressions identify forward-looking statements that speak only as of the date thereof. Investors are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from historical or anticipated results due to many factors. The Company undertakes no obligations to publicly update or revise such statements.
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Contact:
Porter, LeVay & Rose, Inc.
Lori Parks or Linda Decker, 212/564-4700
or
Pinnacle Data Systems, Inc.
John Bair, 614/748-1150
