Applied Signal Technology, Inc. provides advanced digital signal processing products, systems and services used in reconnaissance of telecommunication signals for intelligence gathering, a process referred to as signal intelligence.

According to a press release dated March 11, 2005, the complaint charges Applied Signal and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company, despite representations to the contrary, lacked the staffing necessary to execute on current projects while bidding for new business; (2) that the Company struggled to maintain adequate levels of backlog; and (3) as a consequence of the foregoing defendant's positive statements about managing Applied Signal's workflow and growth while maintaining the Company's profitability were lacking in all material basis when made. Further on or around February 22, 2005, Applied Signal announced its operating results for the first quarter of fiscal year 2005 ended January 28, 2005. The results were below expectations. News of this shocked the market. As a result, shares of Applied Signal fell $4.28 per share or 15.55 percent, on February 23, 2005, to close at $23.24 per share.

If you bought Applied Signal Technology, Inc. securities between May 25, 2004 and February 22, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.