EAGLE WIRELESS INT'L REPORTS FIRST QUARTER FISCAL 1999 RESULTS
-- Net Income up Nearly Six-fold on a 67% Increase in Sales --
HOUSTON, TX -- January 11, 1999 -- Eagle Wireless International, Inc. (OTC BB: EGLW) today reported its unaudited results for the three months ended November 30, 1998.
Sales rose 67% to $931,000 for the first quarter fiscal 1999 from $558,000 for the same period last year. Gross profit margin was 55% with total gross profit of $511,000 for the three months ended November 30, 1998, up from $342,000 for the comparable quarter in fiscal 1998. Net income grew nearly six-fold from $17,000, or $.00 per share on a diluted basis, for the first three months in fiscal 1998 to $96,000, or $.01 per share on a diluted basis, for the comparable quarter in fiscal 1999.
The first quarter fiscal 1999 improvements in sales and net income are attributed to timing constraints on major project shipments and are expected to be ongoing. The majority of the Company's revenues during the first three months of the current fiscal year originated from shipments for a two-way messaging system that Eagle is installing for Link-Two Communications in the Houston and Dallas metroplexes as well as contract research and development services.
As of November 30, 1998, cash and receivables rose to $6,623,000, total assets increased to $8,660,000, and shareholders' equity grew to $7,612,000. The Company had working capital of $6,917,000 and total long-term debt of $22,000 at the close of the first quarter fiscal 1999.
“The R&D agreement we entered into with Compaq Computer and the product distribution agreements with Nikko Japan and Multitone Electronics over the past five months are in line with our two-fold strategy to leverage our presence in the wireless messaging industry and diversify the Eagle product and service offering with non-paging infrastructure products for multi-national sales, manufacturing, and distribution corporations,” explained Company President and CEO Dr. H. Dean Cubley.
“By expanding revenues from consulting and contract R&D services while simultaneously reducing support and administrative expenses through the use of contract labor, we are focused on optimizing shareholder value by continuing to significantly improve bottom line results and shareholders' equity,” Cubley added.
During the first quarter fiscal 1999 the Company signed a letter of intent to form a strategic alliance to develop, manufacture, and distribute wireless messaging products with Multitone Electronics plc, a wholly-owned subsidiary of a multinational telecommunications company. The alliance is expected to facilitate Eagle's efforts to rapidly expand the scope of its market presence in the European Union and Asia, provide an additional source of revenue growth, and leverage the return on its continued R&D investments.
Subsequent to November 30, 1998 the Company signed a letter of intent to form a strategic alliance to develop and distribute wireless personal communications devices with Nikko Japan Company, Ltd., a leading manufacturer of wireless communications equipment and devices with $243 million in annual sales. Also following the close of the first quarter fiscal 1999, Eagle signed a $1.4 million agreement to provide R&D support to the Advanced Engineering Group of Compaq Computer (NYSE: CPQ).
(Financial Statements Follow)
Eagle Wireless International, Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
(in thousands) Three months ended
November 30, 1998 Three months ended
November 30, 1997
Total current assets $7,943 $7,832
Total assets $8,660 $8,550
Total current liabilities $1,026 $1,019
Total long-term debt $22 $15
Total shareholders' equity $7,612 $7,516
Eagle Wireless International, Inc.
Condensed Consolidated Statement of Operations
(Unaudited)
(in thousands) Three months ended
November 30, 1998 Three months ended
November 30,1997
Net sales $931 $558
Total cost of goods sold $420 $216
Gross profit $511 $342
Total operating expenses $535 $411
Net income $96 $17
Net income per common share
- primary
- diluted
$.01
$.01
$.00
$.00
Weighted average shares outstanding
- primary
- diluted
11,670,155
11,750,530
11,542,001
11,549,876
Eagle Wireless International, Inc. is a leading supplier of telecommunications equipment to the paging, specialized mobile radio (SMR), one and two-way wireless messaging, and remote data acquisition markets. The Company is headquartered in Houston, Texas.
Forward-looking statements in this release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. |
