0.13 EPS -
Celeritek Reports First Quarter Results
SANTA CLARA, Calif., July 16 /PRNewswire/ -- Celeritek, Inc. (Nasdaq:CLTK), a manufacturer of GaAs RF ICs and
subsystems for the wireless communications market, today reported results for the first quarter of fiscal 1998.
For the quarter ended June 30, 1997, Celeritek reported revenues of $12,595,000 compared with revenues of $11,518,000
for the same period a year ago. Net income for the first quarter of fiscal 1998 was $956,000, or $0.13 per share, versus net
income of $905,000, or $0.12 per share, in the first quarter of fiscal 1997.
The company reported that sales from the commercial market in the first quarter of fiscal 1998 decreased by approximately 21
percent versus the same period a year ago, while revenues from the defense market increased by approximately 84 percent
over the same period a year ago.
``The company's defense business continued to benefit from its broad capabilities in space communications and ongoing
consolidation in the industry,'' said Tamer Husseini, president and chief executive officer. ``As we have indicated previously,
our commercial revenues have been impacted by the timing of orders received. However, several key orders that we received
and announced in late fiscal 1997 are in development and are currently expected to ship in the second half of fiscal 1998,'' he
added.
Husseini said that during the first quarter the company received $2.4 million in orders for the satellite market from Gilat and
Hughes Network Systems and a $2.5 million order from Sippican for microwave amplifiers. Celeritek also received
approximately $1 million in GaAs RF IC orders from Lucent and Motorola during the quarter. These orders are expected to
ship during the current fiscal year.
``We are making investments to expand the opportunities for our GaAs power amplifier MMIC Triniti DX(TM) product family
for the growing cellular and PCS phone markets,'' he said. He added that the company has hired Perry Denning as vice
president and general manager of the Semiconductor Division. Denning spent 13 years at VLSI Technology, most recently as
vice president, operations. The company's Triniti DX product line addresses the demand for linear, efficient power amplifiers
enabling lighter handset with longer talk times and offers solutions for cellular and PCS frequencies (dual band), and supports
TDMA, CMDA and GSM modulation schemes.
Celeritek designs and manufactures high frequency radio products that provide core transmit and receive functions for wireless
communications. The
company's products are used worldwide by leading manufacturers of wireless
communications systems.
This release contains forward-looking statements within the meaning of 27A of the Securities Act of 1933 and Section 21E of
the Securities Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a
result of known and unknown risk factors and uncertainties. Such factors may include, but are not necessarily limited to, the
ability of the company to complete its move to a new manufacturing facility on schedule; the risks involved in the start up of the
new facility, the timing, cancellation or delay of customer orders; the mix of products sold; changes in manufacturing capacities
and variations in the utilization of this capacity; market acceptance of the company's and its customers' products; variations in
manufacturing yields and other competitive factors. Reference is made to the discussion of risk factors detailed in the
company's filings with the Securities and Exchange Commission, including its reports on Form 10-K and 10-Q.
CELERITEK INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in Thousands, Except Per Share Amounts)
Three months Ended
June 30,
1997 1996
Total net sales $12,595 $11,518
Cost of goods sold 8,223 7,252
Gross profit 4,372 4,266
Operating expenses:
Research and development 1,208 1,081
Selling, general and administrative 1,795 1,869
Total operating expenses 3,003 2,950
Income from operations 1,369 1,316
Interest income (expense) and other, net 148 144
Income before income tax 1,517 1,460
Provision for income taxes 561 555
Net income $956 $905
Net income per share $0.13 $0.12
Shares used in per share calculations 7,391 7,322
CELERITEK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in Thousands)
June 30, March 31,
1997 1997
(unaudited) (Note)
ASSETS
Current assets:
Cash and cash equivalents $5,970 $7,033
Short-term investments 7,680 8,200
Accounts receivable, net 11,463 10,111
Inventories 8,709 7,318
Prepaid expenses and other current assets 346 270
Deferred tax assets 2,144 2,144
Total current assets 36,312 35,076
Property and equipment, net 6,866 6,038
Other assets 91 43
Total assets $43,269 $41,157
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,922 $3,889
Accrued payroll 1,870 1,190
Accrued liabilities 3,008 3,594
Total current liabilities 9,800 8,673
Shareholders' equity 33,469 32,484
Total liabilities and shareholders' equity $43,269 $41,157
NOTE: The balance sheet at March 31, 1997 has been derived from the audited financial statements at that date but does not
include all of the information and footnotes required by generally accepted accounting principles for complete financial
statements.
SOURCE: Celeritek Inc.
Contact: Peggy Smith of Celeritek Inc., 408-986-5060; or Neal Rosen of Kalt, Rosen & Associates, 415-397-2686, for Celeritek Inc. |
