The school takes the position that the SAT does not really matter or measure anything substantive.
Personally, I think that's just silly. Of course it is at least ONE indicator, and it's not comppletely random, right? However, even at our large school, there are only a handful of kids a year, so I wouldn't necessarily assume a deficit. I also think that you need to look at the entire picture: AP scores (not just number taking them, but % scoring 4s or 5s), average ACT/SAT scores, college acceptances, etc... I would almost be more worried about their statement that it's pointless - THAT sounds like CYA. In the end, though, it only really matters how your kids do. If there are enough peers for them to have some like-minded, like-qualified students in their honors/AP classes, it doesn't matter how the "average" student does. I always like to ask, "how many kids are performing at/close to my child's level?" I don't need names, or test scores, but I want to have some sense that my kids won't be outliers. Even if that isn't ideal, is it a small, caring community with teachers willing to mentor/challenge your kids if they ARE alone intellectually? That can make up for a lot. 
