IRVINE, Calif., March 2, 2000 (PRIMEZONE) -- Litronic, Inc. (Nasdaq:LTNX), a leader in professional Internet data security services and secure electronic commerce applications, announced today that, based on preliminary estimates, it expects the net revenues for the fourth quarter 1999 to be between $11 to $12 million and the net loss for the fourth quarter 1999 to be between $0.25 to $0.30 per share. These results do not include recognition of any tax benefits that may or may not be recognizable in the future. Estimates are based on preliminary results and are subject to final audit. The company expects to report its audited 1999 fourth quarter and full year financial results at the end of March.
Kris Shah, Litronic's chief executive officer, said, "Our fourth quarter results were below expectations due to a number of factors. The Internet security sales and deployment cycle has changed over the past six months. Today, we are finding that companies and organizations conduct more complex Internet security audits and analysis before making a buying decision. While this will slow our growth in the short term, the opportunity for Internet security products and solutions is strong and Litronic continues to be competitively positioned at the center of this growing demand."
About Litronic
Litronic provides professional Internet data security services and develops and markets software and microprocessor-based products needed to secure electronic commerce business transactions and communications over the Internet and other communications networks based on Internet protocols. Litronic's primary data security products use an advanced form of computer security technology referred to as PKI. Litronic's Internet security products can be used with world-wide-web browsers, including Netscape Communicator and Microsoft Internet Explorer. Further, Litronic provides the PKI hardware and software components that enable software applications developers to incorporate robust data security into applications such as data base management, e-mail, e-commerce, financial, medical, legal and other sensitive data systems.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this news release relating to the projected growth of e-commence and of the Internet security market; and to Litronic's ability to penetrate the Internet security market, to integrate our June 1999 acquisition and to transition to commercial markets are forward-looking statements that involve a number of risks and uncertainties, including competition from companies with greater financial and technical resources than Litronic, the difficulty in continuing technical innovation (particularly in light of the competitive market for technical personnel), the effect of differing corporate cultures on the integration of our June 1999 acquisition and the acceptance of Litronic's products in the commercial marketplace. Other risks inherent in Litronic's business are described in its Securities and Exchange Commission filings, including the Company prospectus. Litronic undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.