Performance Technologies Updates Guidance for the Second Quarter 2009

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Tue Jul 7, 2009 10:12am EDT

ROCHESTER, N.Y., July 7 /PRNewswire-FirstCall/ -- Performance Technologies,
Inc. (Nasdaq: PTIX) today updated its guidance for the second quarter 2009.  

For the second quarter 2009, the Company expects to report a loss in the range
of ($.08) per share to ($.10) per share.  This updated guidance includes a
discrete income tax benefit of $.01 per share but does not include stock
compensation expense of $.01 per share.  The Company's guidance had indicated
a range of loss between ($.06) per share and ($.01) per share, not including
stock compensation expense.  The larger than expected loss is due to lower
than anticipated revenue.  When it reports, the Company expects second quarter
revenue to be in the range of $6.2 million to $6.6 million.  

"When we issued our guidance for the second quarter, we noted that although
the predictability of the timing of customer orders in the present economic
climate was most challenging, we would continue to provide our best forward
view to our stockholders," said John Slusser, president and chief executive
officer. "Unfortunately, while product interest remains strong, several
anticipated orders were delayed past quarter end.  In these ongoing difficult
economic conditions, we will continue to prudently manage our costs while we
also invest in our strategic initiatives for the future."

The Company's balance sheet continues to be very strong with cash and
investments amounting to approximately $31.6 million, or $2.85 per share, and
the Company had no long-term debt at June 30, 2009.

Management will provide more details surrounding this guidance update on the
Performance Technologies' second quarter earnings conference call which will
be scheduled later this month.

About Performance Technologies (pt.com)

Performance Technologies (Nasdaq: PTIX) is a global supplier of advanced
network communications and control solutions to end users, application
developers and original equipment manufacturers that serve mission critical
telecommunications, aerospace and defense markets. The Company provides
remotely manageable, IP-centric network elements specifically engineered for
high availability, scalability, and long life cycle deployments. Its products
are built upon its own U.S. manufactured hardware combined with the Company's
NexusWare(R) Carrier Grade Linux(R) operating system and software development
environment plus a broad suite of communications protocols and high
availability middleware. Performance Technologies' product portfolio includes
the SEGway(TM) suite of Signaling (SS7/SIP) Transfer Points, Signaling
Gateways and Bridges, and its IPnexus(R) family of COTS-based application
ready systems, WAN gateways, and multi-protocol communications servers. 

Performance Technologies maximizes the value proposition of its products by
leveraging its field proven systems, software and hardware technologies
developed over a twenty-eight year record of demonstrated innovation. A
tightly integrated combination of these technologies results in measurable
benefits to its customers through compelling return-on-investment and
substantially accelerated time to market metrics. The Company is headquartered
in Rochester, New York and maintains centers of engineering excellence in San
Diego and San Luis Obispo, California, and Kanata, Ontario, Canada. It has
sales and marketing offices in the U.S. in Raleigh, Chicago, Dallas, and San
Jose and international offices in London, England and Shanghai, China. 

Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. This press release contains
forward-looking statements which reflect the Company's current views with
respect to future events and financial performance, within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and is subject to the safe harbor provisions of those
Sections. The Company's future operating results are subject to various risks
and uncertainties and could differ materially from those discussed in the
forward-looking statements and may be affected by various trends and factors
which are beyond the Company's control. These risks and uncertainties include,
among other factors, business and economic conditions, rapid technological
changes accompanied by frequent new product introductions, competitive
pressures, dependence on key customers, inability to gauge order flows from
customers, fluctuations in quarterly and annual results, the reliance on a
limited number of third party suppliers, limitations of the Company's
manufacturing capacity and arrangements, the protection of the Company's
proprietary technology, the dependence on key personnel, changes in critical
accounting estimates, potential impairments related to goodwill and
investments, foreign regulations, and potential material weaknesses in
internal control over financial reporting. In addition, during weak or
uncertain economic periods, customers' visibility deteriorates causing delays
in the placement of their orders. These factors often result in a substantial
portion of the Company's revenue being derived from orders placed within a
quarter and shipped in the final month of the same quarter. The Company
undertakes no obligation to publicly update any forward-looking statement or
risk factor, whether as a result of new information, future events, or
otherwise. Forward-looking statements should be read in conjunction with the
audited Consolidated Financial Statements, the Notes thereto, Risk Factors,
and Management's Discussion and Analysis of Financial Condition and Results of
Operations of the Company as of December 31, 2008, as contained in the
Company's Annual Report on Form 10-K, and other documents filed with the
Securities and Exchange Commission.



SOURCE  Performance Technologies, Inc.

Dorrance W. Lamb, Senior Vice President and Chief Financial Officer of
Performance Technologies, +1-585-256-0200 ext. 7276, finance@pt.com
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