[Q3 FY00 Financial Results (Press Release)]
Wednesday January 19, 4:30 pm Eastern Time
Company Press Release
SOURCE: Digital Microwave Corporation
Digital Microwave Corporation Reports Third Quarter Financial
Results For Fiscal Year 2000
Substantial Increases in Revenues, Profits and New Orders
SAN JOSE, Calif., Jan. 19 /PRNewswire/ -- Digital Microwave
Corporation (Nasdaq: DMIC - news) today reported results for
the third quarter of fiscal year 2000, ended December 31,
1999. Sales were $77.4 million, a 33% increase compared to
sales of $58.3 million for the third quarter of the prior
year. Net income for the fiscal year 2000 third quarter was
$3.4 million ($0.05 per share) compared to a net loss of
$67.5 million ($1.09 per share), including merger,
restructuring and inventory revaluation charges of $60.5
million, in the third quarter of the prior year.
For the nine months ended December 31, 1999, sales were
$211.9 million, a 20% increase over sales of $176.8 million
for the same period a year ago. Net income for the nine month
fiscal year 2000 period was $4.8 million ($0.07 per share) as
compared to a loss of $94.1 million ($1.53 per share),
including merger, restructuring and inventory valuation
charges of $67.7 million, for the first nine months of fiscal
year 1999.
During the fiscal year 2000 third quarter, the Company
received $104.3 million in new orders, compared to $56.3
million for the third quarter of fiscal year 1999, an
increase of 85%. New orders for the nine months ended
December 31, 1999, totaled $243.3 million. As of December 31,
1999, backlog was $92.6 million.
In November 1999, the company sold 3,450,000 shares of stock
from a Shelf Registration filed previously with the SEC. The
Company received net proceeds of approximately $55.2 million
from the sale before expenses, intended for general corporate
purposes and potential strategic investments.
``The significant growth during this quarter confirms that
our product solutions have been developing strong momentum
across our markets, and especially in the fixed broadband
access and mobile communications markets,' commented
Chairman and CEO Charles Kissner. ``Orders in every
geographic area and across the entire line of Digital
Microwave's products and services increased significantly
this quarter. While orders were exceptionally strong overall,
we experienced a particularly rapid and significant increase
in business in the Americas. Our North American business was
especially robust due to significant orders and shipments to
support U.S. fixed broadband wireless infrastructure
buildouts. Altium and XP-4 orders were very strong.'
Sam Smookler, President and COO, commented, ``Shipments in
each product area also were strong and showed increases over
the prior quarter, the result of both high demand and
continued operational improvements.'
Mr. Kissner also remarked that during the quarter, the
Company stepped up activities in developing a new generation
of ultra-high capacity systems. ``In October, we announced
that we had completed development of a new chip set,
Velocity, part of a new generation of broadband products. We
also continued our program of selective technology
investments in companies that have strong promise of
complementing our business.'
The statements in this press release that relate to the
impact of new product introductions, market penetration,
restructuring and the Company's momentum are forward-looking.
These forward-looking statements are based on current
expectations and the Company assumes no obligation to update
this information. The Company's actual results could differ
materially from those anticipated in these forward-looking
statements as a result of certain factors, including the
volume and timing of orders for the Company's products, the
ability of the Company and its suppliers to respond to
changes made by customers in their orders, the ability of the
Company to bring its new products to market quickly at cost-
effective prices and to add innovative features that
differentiate its products from those of its competitors,
competition in the microwave and access business,
fluctuations in foreign currency exchange rates, regulatory
developments and general economic conditions. For a
discussion of such factors, see the ``Risk Factors' in the
Company's Form S-3, which was declared effective by the SEC
on October 1, 1999.
Headquartered in San Jose, California, Digital Microwave
Corporation provides microwave radio solutions to connect,
enable and grow communications networks worldwide. The
Company's industry-leading broadband, medium-capacity and
low-capacity radios transport data, voice, and video for
public and private networks in a wide range of global
environments. Digital Microwave Corporation brings value to a
diverse range of customers through its vast array of quality
systems, services and support.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1999 1998 1999 1998
Net sales $77,435 $58,278 $211,915 $176,774
Cost of sales 54,013 46,513 149,760 141,491
Inventory valuation
charges -- 37,739 -- 37,739
Gross profit (loss) 23,422 (25,974) 62,155 (2,456)
Operating expenses:
Research and
development 6,149 5,231 18,253 18,118
Selling, general and
administrative 13,382 12,611 37,128 43,881
Merger and restructuring
charges -- 22,728 -- 29,941
Total operating expenses 19,531 40,570 55,381 91,940
Operating income (loss) 3,891 (66,544) 6,774 (94,396)
Other income (expense) 355 (505) (749) 848
Income (loss) before
income taxes 4,246 (67,049) 6,025 (93,548)
Provision for income taxes 849 425 1,205 522
Net income (loss) $3,397 $(67,474) $4,820 $(94,070)
Basic earnings (loss)
per share $0.05 $(1.09) $0.07 $(1.53)
Diluted earnings (loss)
per share $0.05 $(1.09) $0.07 $(1.53)
Basic weighted average
shares outstanding 66,316 61,713 64,391 61,519
Diluted weighted average
shares outstanding 71,513 61,713 69,439 61,519
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, March 31,
1999 1999
(Unaudited)
Assets
Cash and short-terms investments $64,456 $27,263
Accounts receivable, net 85,217 60,253
Inventories 48,038 50,610
Other current assets 12,098 15,836
Total current assets 209,809 153,962
Property & equipment, net 43,457 43,025
Other assets 12,755 5,177
Total assets $266,021 $202,164
Liabilities and Stockholders' Equity
Current portion of long-term liabilities $519 $1,587
Accounts payable 32,400 25,116
Income taxes payable and other current
liabilities 31,682 42,012
Total current liabilities 64,601 68,715
Long-term liabilities 20 2,236
Total liabilities 64,621 70,951
Stockholders' equity 201,400 131,213
Total liabilities and stockholders' equity $266,021 $202,164
SOURCE: Digital Microwave Corporation |
