Spectrian Announces Second Quarter Fiscal 1998 Results
Business Wire - October 23, 1997 16:15
SPECTRIAN SPCT %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %EARNINGS
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SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 23, 1997--Spectrian (NASDAQ:SPCT), the leading
independent supplier of ultra linear, higher power RF amplification systems, today announced financial
results for the quarter ended September 28, 1997.
The Company reported record revenues for the second quarter of fiscal 1998 of $48.2 million, an increase
of 117% from $22.3 million for the same period a year ago. Net income for the second quarter was $6.3
million, or $0.60 per share, as compared to a net loss of $336,000, or $0.04 per share, in the same
quarter a year ago.
Gross margin during the second quarter was 29 percent as compared to 25 percent in the same quarter
last year. The increase in gross margin reflects improved production yields and the benefits of spreading
the Company's fixed manufacturing costs over doubled shipment volumes.
"We continue to ride the wireless wave generated by our customers' successes in the infrastructure
market," stated Garrett A. Garrettson, president and CEO. "Spectrian's second fiscal quarter saw
continued growth in both our digital cellular and PCS product lines. Revenue from those two areas
increased 130% and 235% respectively over the same quarter one year ago."
"Operating expenses continue to decrease as a share of revenue," continued Garrettson. "Research and
Development decreased to 8.6% of revenues from 16.9% a year ago while Sales, General and
Administrative expenses declined to 6.3%, down from 8.7%"
For the six months ended September 28, 1997, revenues totaled $94.0 million, compared to $32.2 million
for the same period in fiscal 1997. Net income for the first six months of fiscal 1998 totaled $12.7 million,
or $1.30 per share, as compared to a net loss of $5.7 million, or $0.70 per share, for the same period a
year ago.
Spectrian's balance sheet at September 28, 1997 included $94.6 million in cash, cash equivalents and
short-term investments, an increase of $88.3 million from the Company's fiscal 1997 ending balances at
March 31, 1997. The increase was primarily attributable to the Company's two million share equity
offering during the second quarter.
The Company notes that any forward-looking statements are subject to risks and uncertainties. The
Company's results could differ materially based on various factors including, and without limitation, the
cancellation or deferral of customer orders; the timely development and market acceptance of new
products: continued growth in wireless communication, including PCS; the ability to manufacture new or
existing products in sufficient quantity or quality; and economic conditions. Further information on factors
which could affect the Company's financial results are included in the Company's 1997 Form 10-K and
the Company's Prospectus dated August 14, 1997.
Spectrian is the leading independent supplier of ultra linear, high power RF power amplifiers to wireless
communication infrastructure manufacturers and service providers worldwide. As an ISO 9001 quality
system-certified company, Spectrian designs and manufactures power amplifiers for use in microcell and
macrocell base stations for cellular, PCS and Wireless Local Loop networks. Spectrian is located at 350
West Java Drive, Sunnyvale, Calif., 94089. For more information, contact the Company's Web Site at
www.spectrian.com or call 408/745-5400.
SPECTRIAN CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data and per share data)
(unaudited)
Three months Six months
ended ended
Sept. 28, Sept. 28,
1997 1996 1997 1996
---- ---- ---- ----
Revenues $ 48,242 $ 22,272 $ 94,008 $ 32,195
Costs and expenses:
Cost of product sales 34,481 16,639 66,532 25,130
Research and development 4,139 3,770 8,380 8,063
Selling, general and
administrative 3,046 1,946 6,507 4,325
-------- -------- -------- --------
41,666 22,355 81,419 37,518
-------- -------- -------- --------
Operating income (loss) 6,576 (83) 12,589 (5,323)
Interest income (expense), net 595 (251) 576 (325)
Other income (expense), net -- -- 1,530 --
-------- -------- -------- --------
Income (loss) before income taxes 7,171 (334) 14,695 (5,648)
Income tax expense 859 2 1,989 2
-------- -------- -------- --------
Net income (loss) $ 6,312 $ (336) $ 12,706 $ (5,650)
======== ======== ======== ========
Net income (loss) per share
Primary $ 0.60 $ (0.04) $ 1.30 $ (0.70)
Fully diluted $ 0.59 $ (0.04) $ 1.26 $ (0.70)
Shares used in computing
per share amounts:
Primary 10,603 8,147 9,760 8,093
Fully diluted 10,744 8,147 10,067 8,093
SPECTRIAN CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
Sept. 28, March 31,
Assets 1997 1997
-------- --------
(Unaudited)
Current Assets:
Cash and cash equivalents $ 14,478 $ 6,240
Short-term investments 80,105 --
Accounts receivable, less allowance for
doubtful accounts of $370 and $365,
respectively 27,270 15,825
Inventories 23,589 17,301
Prepaid expenses and other current assets 4,234 1,806
------- -------
Total current assets 149,676 41,172
Property and equipment, net 27,154 25,461
======= =======
$ 176,830 $ 66,633
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of debt obligations $ 1,506 $ 1,588
Accounts payable 9,498 8,101
Accrued liabilities 12,192 7,421
------- -------
Total current liabilities 23,196 17,110
Debt obligations, net of current portion 6,607 7,057
------- -------
Total liabilities 29,803 24,167
------- -------
Shareholders' equity:
Common Stock, no par value, 20,000,000
shares authorized; 10,725,010 and 8,265,230
shares issued and outstanding, respectively 145,183 53,395
Unrealized gain on short term investments 67 --
Retained earnings (accumulated deficit) 1,777 (10,929)
------- -------
Total shareholders' equity 147,027 42,466
======= =======
$ 176,830 $ 66,633
CONTACT: Spectrian Corp.
Bruce R. Wright, 408/543-5929
spct_ir@spectrian.com |
