Jenna,
AHAA
Tuesday July 13, 4:01 pm Eastern Time
Company Press Release
Alpha Industries Announces Record-Level Financial
Performance in First Quarter
WOBURN, Mass.--(BUSINESS WIRE)--July 13, 1999--ALPHA INDUSTRIES, INC. (NASDAQ:AHAA - news) today announced its results for
the first fiscal quarter ended June 27, 1999.
The Company reported net income for the first quarter of $4.4 million or $0.25 per share, up more than 55% compared with adjusted net income
for the same period last year. Adjusted net income for last year's period of $2.8 million or $0.18 per share assumes a tax rate of 36%, the same
as for this year's quarter. Reported net income for last year's period was $4.0 million or $0.25 per share.
Net sales for the quarter were $38.6 million, up by 29% over $30.0 million for the same period last year. New orders received in the quarter
totaled $42.0 million, up from $27.7 million for the same period last year.
The Company's Wireless Semiconductors segment had sales of $24.0 million and generated $3.7 million in operating profit at a 45.7% gross
margin. Application Specific Products had sales of $6.6 million and generated $1.7 million in operating profit at a 50.4% gross margin. Ceramic
Products had sales of $8.0 million and generated $900 thousand in operating profit at a 35.2% gross margin. Deliveries to one major customer
were 32.2% of total sales for the quarter.
Tom Leonard, President and CEO of Alpha, stated, ''This has been an outstanding quarter for Alpha. Our markets are strong, our products
meet the markets' needs, and we have been winning new orders from a wide range of customers. Wireless Semiconductors grew its sales by
70% and its operating income by 350% over last year. We are increasing our penetration of major wireless equipment OEMs. We see
continued strength in the wireless telephony markets.
''Wireless voice and data applications are converging, and we have made the strategic decision to focus on this dynamic market opportunity.
Wireless OEMs have already begun introducing a stream of innovative wireless phones with data capabilities, as well as new data
applications. These new products will increase the size of our target markets, and their RF complexity will increase the need for Alpha's
products. We expect this trend to continue and strengthen, and we intend to be a major supplier to the markets it will create.
Company Summary - Alpha Industries designs, develops, manufactures and markets proprietary radio frequency, microwave frequency and
millimeter wave frequency integrated circuits and discrete semiconductors for wireless voice and data communications. The primary
applications for our products include wireless handsets for cellular and personal communications services, or PCS. We also produce
integrated circuits, discrete components and ceramic resonators and ferrites used in wireless base station equipment, cable television,
wireless local loop, wireless personal digital assistants and wireless local area networks. Additional information is available at Alpha's
Website - www.alphaind.com.
Safe Harbor Statement - Except for the historical information contained herein, this news release contains forward-looking statements that
constitute the Company's current intentions, hopes, beliefs, expectation or predictions of the future which are, therefore, inherently subject to
risks and uncertainties. The Company's actual results could differ materially from those anticipated in the Company's forward-looking
statements based on various factors, including without limitation: cancellation or deferral of customer orders, dependence on a small number
of large customers, difficulties in the timely development and market acceptance of new products, market developments that vary from the
current public expectations concerning the growth of wireless communications, difficulties in manufacturing new or existing products in
sufficient quantity or quality, increased competitive pressures, decreasing selling prices for the Company's products, or changes in economic
conditions. Further information on factors that could affect the Company's performance is included in the Company's periodic reports filed
with the SEC, including but not limited to the Company's Form 10-K for the year ended March 28, 1999, and subsequent Forms 10-Q. The
Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The
Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect
any change in the Company's expectations or any change in events, conditions or circumstance on which any such statement is based.
-0-
ALPHA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(unaudited) First Quarter Ended
June 27, June 28,
(in thousands, except per share data) 1999 1998
Net sales $ 38,605 $ 29,955
Cost of sales 21,500 17,132
Research and development expenses 4,386 3,022
Selling and administrative expenses 6,434 5,497
Operating income 6,285 4,304
Interest expense (57) (89)
Interest income and other, net 630 201
Income before income taxes 6,858 4,416
Provision for income taxes 2,469 442
Net income(a) $ 4,389 $ 3,974
Net income per share basic(a) $ 0.26 $ 0.25
Net income per share diluted(a) $ 0.25 $ 0.25
Weighted average common shares basic 16,932 15,708
Weighted average common shares diluted 17,866 16,098
COMPARATIVE BALANCE SHEET
(unaudited) June 27, March 28,
(in thousands) 1999 1999
Current assets
Cash, cash equivalents and
short-term investments $129,619 $ 23,760
Accounts receivable, net 24,682 22,972
Inventories 9,928 8,773
Prepaid expenses and other current assets 5,728 7,318
Property, plant and equipment, less
accumulated depreciation and amortization 46,209 42,497
Other assets 1,432 1,361
Total assets $217,598 $106,681
Liabilities and Equity
Current liabilities
Current portion of long-term debt $ 387 $ 912
Accounts payable 9,523 10,700
Accrued liabilities and other current
liabilities 6,860 8,524
Long-term debt 462 713
Other long-term liabilities 4,991 4,818
Stockholders' equity 195,375 81,014
Total liabilities and equity $217,598 $106,681
(a) Note - Alpha began reporting earnings on a fully taxed basis at an effective rate of 36%, beginning with the first quarter of fiscal 2000.
Reported earnings for the first quarter of fiscal 1999 reflect a 10% tax rate, due to the utilization of net operating loss carryforwards. At an
assumed tax rate of 36%, net income for the first quarter of fiscal 1999 would have been $2.8 million or $0.18 per share.
Contact:
Alpha Industries, Inc.
James C. Nemiah, Investor Relations
(617) 824-4426
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