AML to Substantially Miss Estimates...
From the news wire:
AML Communications Inc. announces preliminary revenue and earnings
outlook for fiscal 1997 fourth quarter and full year
CAMARILLO, Calif.--(BUSINESS WIRE)--March 25, 1997-- AML Communications Inc Tuesday announced that based
on preliminary unaudited results of operations, it expects to report a 100 percent increase in revenues to approximately $14
million for the fiscal year ending March 31, 1997, compared with $6.98 million for the prior year.
For the fourth quarter ending March 31, 1997, the company anticipates reporting revenues of approximately $2.5 million
compared with $2.6 million for the same three-month period last year.
According to First Call, current analyst earnings estimates for the company reflect median earnings per share of 12 cents and
44 cents for the fourth quarter and fiscal year respectively. Management believes that the company will fall substantially short
of meeting these estimates.
Management noted that the 102 percent year-to-year increase in revenues is due primarily to increased sales of cellular and
wireless telephony multicarrier amplifiers. While the company realized a substantial increase in revenue on an annual basis and
measurable increases on a quarterly basis through the third quarter, sales of cellular products throughout the year have been
indicating a declining trend.
Management attributes the sharp decline in revenue for the fourth quarter to several factors. Foremost is a result of major
cellular infrastructure suppliers producing a more cost effective macrocell base station as well as improved multicarrier
amplifier-based microcells, both of which now compete directly with the company's multicarrier amplifier product line.
Specifically, as the result of these improved macrocell-based stations, the cellular industry's slow transition from macrocells to
microcells has impeded the company's ability to sustain its revenue growth rate throughout fiscal 1997.
A secondary factor affecting the company's revenue is the operator's reduced mindshare and budgets for the cellular
infrastructure in light of the preparation for the mass PCS deployment.
Commenting on this important announcement, Chairman and CEO Jacob Inbar said: "While we are not pleased with the
preliminary results of the quarter, we are encouraged by our future. We continue to create unique solutions where our
technological strengths, product diversification and customer relationships can be capitalized on.
"Anticipating changes in the cellular sector while PCS rolls out, we had made early decisions to diversify into markets such as
paging and satellite communications. Consequently, during the fourth quarter, we have delivered our first two-way paging
masthead amplifier and expect to deliver our first high-linearity amplifiers for a low-earth orbit satellite communication system."
Inbar continued discussing the company's plans: "Looking forward, we expect the demand for PCS equipment to increase
over the next several quarters. We see many near-term and future opportunities in this new emerging market and expect to
capitalize on our solution-oriented approach in selling directly to system operators as well as accelerating our marketing efforts
to original equipment manufacturers."
AML Communications will host a nationwide conference call at 1 p.m. EDT (10 a.m. PST) on Tuesday, March 25, to discuss
these developments. Those interested in participating in this teleconference may dial 212/346-0190 or 415/904-7358. Provide
the operator with call reservation No. 2611361.
AML Communications designs, manufactures and markets multicarrier amplifiers, masthead amplifiers and repeaters for the
cellular, PCS, paging and other communications markets.
Statements made in this news release that relate to future plans, financial results or projections, events or performance are
forward-looking statements and fall within the safe harbor of the Private Securities Litigation Reform Act of 1995.
The company's actual results and financial position could differ materially from those anticipated in the forward-looking
statements as a result of a number of factors, including but not limited to, economic conditions, changing trends within the
industry, impact of OEM competition, the successful execution of the company's product expansion plans and other risks and
uncertainties described in detail under the "Risk Factors" section and elsewhere in the company's prospectus dated Dec. 12,
1995, as well as in the company's other filings with the Securities and Exchange Commission.
CONTACT: AML Communications Inc., Camarillo
Kirk A. Waldron, 805/388-1345
or
Coffin Communications Group, Sherman Oaks, Calif.
Steven B. Johnson, 818/789-0100 |
