SAN JOSE, Calif., Sept. 17, 2001 (PRIMEZONE) -- WJ Communications, Inc. (Nasdaq:WJCI) today announced a further step in its efforts to return to positive EBITDA. Given current market conditions, the Company has decided to abandon its excess facility, located adjacent to its current corporate headquarters. This leased facility was originally developed to house additional administrative and corporate offices to accommodate planned expansion. The Company has been and will continue actively seeking sub-tenants for the excess space. WJ will take a charge of approximately $10.0 million in the third quarter of 2001, reflecting the cost of the lease less anticipated sub-lease income.
"This step will further lower our expenses as we move toward our goal of returning the Company to profitability on an EBITDA basis in the first half of next year," said Malcolm Caraballo, Chief Executive Officer of WJ Communications. "With over $60 million in cash as of July 1, 2001, no significant debt, and a number of recently introduced state-of-the-art products, we remain highly confident in our ability to continue to be an industry-leading broadband component supplier for wireless and fiber optic markets and position the Company for future growth opportunities."
WJ Communications, Inc., headquartered in San Jose, California, designs, develops and manufactures innovative broadband communications products for the current and next generation fiber optic, broadband cable and wireless communications networks.
This release contains forward-looking statements including statements as to the plans and objectives of management for future operations. These forward-looking statements are not historical facts but rather are based on current expectations. The Company's actual results may differ materially from those projected in these forward-looking statements as a result of a number of factors, including, but not limited to, the Company's actual performance for the first six months of 2002, the eventual actual cost to the Company related to the abandonment of the lease, technological innovation in the wireless communications markets, the availability and the price of raw materials and components used in the Company's products, the demand for wireless and fiber optic products generally as well as those of our customers, new product acceptance, general economic conditions and other factors including those identified in the Company's periodic filings with the SEC. Readers of this release are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise the forward-looking statements contained herein to reflect changed events or circumstances after the date of this press release.