California Amplifier Reports FY 2004 First Quarter Results
Thursday June 19, 4:15 pm ET
CAMARILLO, Calif., June 19 /PRNewswire-FirstCall/ -- California Amplifier, Inc. (Nasdaq: CAMP - News) today reported results for its first quarter ended May 31, 2003.
Sales for the first quarter of fiscal 2004 were $18.6 million, compared to $22.5 million for the first quarter of the prior year. Net loss for the first quarter was $1.1 million, or $0.07 per diluted share, compared to net income of $1.5 million, or $0.10 per diluted share for the first quarter of fiscal year 2003. First quarter results include the effects of asset impairment charges of approximately $825,000 before income taxes related to manufacturing equipment and inventories within the Satellite business segment.
Fred Sturm, President and Chief Executive Officer, commented, "California Amplifier continues to reshape itself to compete in what remains a difficult market climate. During the quarter, we undertook several restructuring initiatives, including rationalizing our manufacturing capacity by consolidating two North American facilities, reducing our workforce and expanding our use of outsourced subassemblies. While our management team worked to contain costs and improve operating performance, we also maintained our focus on leveraging the Company's RF design expertise to new markets and products. We look forward to sharing the details on our progress as we meet significant milestones in terms of customer acceptance and market validation."
"Despite the challenging conditions, we remain optimistic about the long- term growth opportunities for our served markets and our balance sheet remains strong with nearly $22 million in cash," added Mr. Sturm. "Given the industry build-up of certain satellite products inventory and the continued uncertainty in the wireless market, we continue to closely monitor our cost structure and seek ways to improve the efficiency of our operations."
About California Amplifier, Inc.
California Amplifier designs, manufactures and markets a broad line of integrated microwave solutions used primarily in conjunction with satellite television and terrestrial broadband wireless applications. The Company's Satellite business unit designs and markets reception components for the Direct Broadcast Satellite television market as well as a full line of consumer and commercial products for video and data reception. The Wireless Access business unit designs and markets integrated wireless solutions for video and data applications. California Amplifier is an ISO 9001 certified company. For additional information, visit California Amplifier's web site at www.calamp.com .
Statements in this release about the Company's future financial performance, customer relationships, initiatives to develop innovative wireless solutions, and the market potential of new products are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Words such as "may," "will," "expects," "intends," "plans," "believes," "seeks," "could," "optimistic," "potential," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Factors that could impact California Amplifier's future results include changes in product demand and market growth rates, the effect of competition, pricing pressures, supplier constraints, manufacturing yields, market acceptance of new products and the viability and market acceptance of new technologies. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. More information about California Amplifier's risks is available in the Company's annual report on Form 10-K and other filings made from time to time with the Securities and Exchange Commission."
For more information, contact:
Crocker Coulson
Partner
Coffin Communications Group
(818) 789-0100
crocker.coulson@coffincg.com
Rick Vitelle
Chief Financial Officer
California Amplifier, Inc.
(805) 987-9000
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
Three Months Ended
May 31, May 31,
2003 2002
Sales $18,566 $22,482
Cost of sales 17,260 16,638
Gross profit 1,306 5,844
Operating expenses:
Research and development 1,362 1,701
Selling 494 730
General and administrative 844 1,050
Total operating expenses 2,700 3,481
Operating income (loss) (1,394) 2,363
Non-operating expense (53) (1)
Income (loss) before income taxes (1,447) 2,362
Income tax (provision) benefit 345 (896)
Net income (loss) $(1,102) $1,466
Net income (loss) per share:
Basic $(.07) $.10
Diluted $(.07) $.10
Shares used in per share
calculations:
Basic 14,745 14,373
Diluted 14,913 14,756
BUSINESS UNIT SALES INFORMATION:
Three Months Ended
May 31, May 31,
2003 2002
Satellite Products $16,621 $19,474
Wireless Access Products 1,945 3,008
Total $18,566 $22,482
CONSOLIDATED BALANCE SHEETS
(in thousands)
May 31, February 28,
2003 2003
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $21,899 $21,947
Accounts receivable, net 6,680 16,053
Inventories 14,103 12,862
Deferred income tax assets 1,454 1,130
Prepaid expenses and other current assets 1,329 1,100
Total current assets 45,465 53,092
Property and equipment, at cost, net of
accumulated depreciation and amortization 7,929 9,322
Deferred income tax assets, less current portion 5,400 5,400
Goodwill 20,938 20,938
Other assets 747 845
$80,479 $89,597
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $3,425 $3,005
Accounts payable 4,558 11,553
Accrued payroll and employee benefits 798 1,649
Other accrued liabilities 2,275 2,198
Total current liabilities 11,056 18,405
Long-term debt, net of current portion 11,899 12,569
Stockholders' equity:
Common stock 147 147
Additional paid-in capital 43,444 43,441
Retained earnings 14,734 15,836
Accumulated other comprehensive loss (801) (801)
Total stockholders' equity 57,524 58,623
$80,479 $89,597
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