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Andrew to record special charge in 2Q for product defect

ORLAND PARK, Ill.-Andrew Corp. said it expects to record a fiscal second-quarter charge of between $15 million and $20 million for the cost to replace and repair a defective component supplied by a third party in certain base station subsystem product lines.

“We have identified the defective component and are moving quickly to analyze and satisfy the needs of our customer,” said Ralph Faison, president and chief executive officer at Andrew Corp.

The company said it is reviewing the data provided by the customer on Feb. 4, and is discussing with “appropriate third parties, including the specific component supplier and the company’s primary contract manufacturer, to ascertain potential recovery costs.”

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