CAMP crossed 16 this morn, another monster from that scan, called it around 4, sold way too early...
Message 19115377
California Amplifier Earnings/Vytek: Deal To Close 1Q
Tuesday December 23, 4:55 pm ET
CAMARILLO, Calif. (Dow Jones)--California Amplifier Inc. (NasdaqNM:CAMP - News) boosted its outlook on a big improvement in third-quarter earnings and said it will acquire privately held Vytek Corp. for stock worth $76.8 million.
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In a press release Tuesday, California Amplifier posted net income of $3.5 million, or 22 cents a share, four cents higher than expectations and up from year-ago net income of $905,000, or 6 cents a share.
Sales were $44.2 million, compared to $24 million for last year.
The company expects fourth-quarter earnings of 18 to 24 cents a share, on sales of $40 million to $48 million. Analysts expected fourth-quarter earnings of 9 cents a share.
California Amplifier said it expects to acquire Vytek in the first quarter of 2004. Vytek, in the first 11 months of 2003, had revenues of $38.4 million, 40% of which were from wireless products and 60% from software development and professional services.
Vytek, San Diego, a software and hardware provider, is backed by private equity investors including Charterhouse Group International, CIBC Capital Partners, Frontenac Company, Goldman Sachs, Mission Ventures and Mobius Venture Capital.
California Amplifier shares were halted and last changed hands at $10.05 a share, up 7.4%, on volume of 528390 shares. Average daily volume is 265.531 shares.
California Amplifier said higher demand and prices helped third-quarter results.
The company expects the Vytek acquisition will boost earnings in fiscal 2006.
California Amplifier, which has 15 million shares outstanding, agreed to acquire Vytek in exchange for 8.2 million California Amplifier common shares valued at $76.8 million based on the closing stock price Dec. 22.
There will also be a 15-month escrow of shares with an initial value of $8 million to support any post-closing claims that California Amplifier may have. The escrowed shares could be sold under certain circumstances during the escrow period and replaced with an equivalent amount of cash.
Vytek shareholders with 32% of Vytek voting power have committed to support the merger and will sign lock-up agreements not to sell shares of California Amplifier received in the merger for 6 to 12 months after the closing. |
