Vari-L Company Announces Increased Sales And Earnings For Third Quarter And
Nine Month Period
PR Newswire, Friday, November 01, 1996 at 08:43
DENVER, Colo., Nov. 1 /PRNewswire/ -- Vari-L Company, Inc.
(Nasdaq-NNM: VARL), a provider of radio frequency (RF) and microwave signal
processing components used in the wireless telecommunications industry, today
announced financial results for the third quarter and nine month period ended
September 30, 1996.
Third quarter net income increased 8% to $192,000, or 5 cents per share,
on sales that increased 17% to $2,601,000 as compared to net income of
$177,000, or 5 cents per share, on sales of $2,232,000 in the third quarter a
year ago.
Net income for the nine-month period grew 23% to $638,000, or 16 cents per
share, on sales that advanced 20% to $7,783,000 as compared to net income of
$517,000, or 17 cents per share, on sales of $6,480,000 in the same period
last year.
Gross margins exceeded 49% for both the three- and nine-month periods.
Earnings per share in the nine-month period were impacted by an increase in
the number of shares outstanding resulting primarily from the Company's
successful warrant solicitation ended July 1995.
Vari-L received $1.6 million in firm customer orders during the third
quarter, which gave the Company a backlog of $12.6 million, down slightly from
its recent high of approximately $14 million. The decline in backlog reflects
reduced OEM orders due to ongoing delays in rollout of the domestic personal
communications services (PCS) market. Management expressed confidence,
however, that when the domestic PCS market rollout begins to accelerate, the
Company's order flow and backlog will increase correspondingly.
"While Vari-L again reported increased revenue and earnings, our short-
term performance continues to be impacted by delays in the domestic PCS market
rollout," said Dave Sherman, President. "For the long term, however, we
believe demand for our products will increase steadily both domestically and
worldwide as new wireless applications and networks come on stream."
Sherman noted that Vari-L's recent announcement of a planned joint venture
with the People's Republic of China underscores the vast potential of the
growing worldwide move to wireless technologies. Terms of the proposed
agreement call for Vari-L and China to jointly manufacture PCS components for
distribution to Chinese markets and throughout the world.
INCOME STATEMENT DATA
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Net Sales $2,601,000 $2,232,000 $7,783,000 $6,480,000
Net Income $192,000 $177,000 $638,000 $517,000
Earnings Per Share $.05 $.05 $.16 $.17
Wgt. Avg. Shares
Outstanding 3,830,000 3,706,000 3,884,000 3,105,000
BALANCE SHEET DATA
September 30 December 31,
1996 1995
Working Capital $9,018,000 $10,416,000
Total Assets $26,735,000 $22,240,000
Non-current Liabilities $4,331,000 $1,937,000
Shareholders' Equity $17,667,000 $16,241,000
Through its headquarters in Denver, Vari-L designs, manufactures and
markets a wide range of RF and microwave signal processing components used in
the wireless telecommunications industry for both commercial and military
applications. Vari-L serves a diverse customer base comprised of some of the
world's leading technology companies including AT&T, Ericsson, Hughes, IBM,
Lockheed, Lucent Technologies, Magnavox, Motorola, Nokia, Northern Telecom,
QUALCOMM, Raytheon, Samsung, Steinbrecher, and Texas Instruments.
Some of the statements contained in this news release are forward-looking
statements. The accuracy of these statements cannot be guaranteed as they are
subject to a variety of risks including, but not limited to, future economic
conditions, competitive products and pricing, new product development, the
delivery of products under existing contracts and other factors.
SOURCE Vari-L Company, Inc.
-0- 10/31/96
/CONTACT: Dave Sherman, President of Vari-L Company, Inc., 303-371-1560;
or Jay Pfeiffer or Lillian Craze, 303-393-7044, both of Pfeiffer Public
Relations, Inc./ |
