I have no special insight, but here's the numbers:
ANTA CLARA, Calif., Jan. 13 /PRNewswire/ -- Celeritek, Inc. (Nasdaq: CLTK - news), a manufacturer of GaAs RF ICs
and subsystems for the wireless communications market, today reported results for the third quarter and first nine months of
fiscal 1998.
For the quarter ended December 31, 1997, Celeritek reported revenues of $14,412,000 compared with revenues of
$10,565,000 for the third quarter of fiscal 1997. Net income for the third quarter of 1998 was $1,170,000, or $0.16 of diluted
earnings per share, versus net income of $712,000, or $0.10 of diluted earnings per share, for the same period a year ago.
For the first nine months of fiscal 1998, Celeritek reported revenues of $40,536,000 compared with revenues of $33,740,000
in the same period a year ago. The company reported net income of $3,179,000, or $0.43 of diluted earnings per share,
compared with net income of $2,643,000, or $0.36 of diluted earnings per share, for the first nine months of fiscal 1997.
The results for the third quarter and nine months of fiscal 1998 include a one-time charge of approximately $320,000, or
approximately $0.04 per share, related to a potential acquisition that was subsequently terminated.
The company reported that sales from the commercial market in the third quarter of fiscal 1998 increased 68 percent versus
the third quarter a year ago, while revenues from the defense market increased three percent versus the third quarter of last
year.
''Celeritek continued to experience solid growth in the commercial arena. Our GaAs RF IC semiconductor sales volume grew
by approximately 50 percent over the third quarter of last year and we received a $2.1 million order for RF IC power
amplifiers for cellular handsets from Phillips,'' said Tamer Husseini, president and chief executive officer.
''We have been encouraged by the positive response to our recently introduced Triniti DX(TM) PRO line of 3.0 volt power
amplifiers for cellular, PCS, CDMA/TDMA and GSM 1800/1900 phones,'' Husseini said. ''We have won six new design-ins
since its introduction with various manufacturers for handset and wireless local loop applications and believe these products are
technically superior to any other solution currently in the market place.''
''We remain very dedicated to the GaAs market and are investing in people and capital equipment to grow that business,'' he
continued. ''While the transaction we pursued would have accelerated that process, we are on track with our long-term plans.
We expect that our expanded production capabilities will be on line during the first few weeks of fiscal 1999,'' he continued.
Husseini said other segments of the company's commercial business experienced growth and that during the quarter Celeritek
received a $2.2 million order from GE Spacenet for satellite ground equipment. Subsequent to the end of the quarter, the
company received a $3.5 million order from P- Com for outdoor units (ODUs).
''While our defense revenues were, as expected, relatively flat compared with the third quarter of last year, a significant portion
of that business was in the satellite area which contributed to improved gross margins during the quarter,'' he noted.
Regarding the company's balance sheet, Husseini said, ''Our financial condition remains strong and we have minimal long-term
debt. The increase in accounts receivable reflects the timing of payments at the end of the calendar year and our inventories
included increased material for subsystem commercial products.''
Celeritek designs and manufactures GaAs RF ICs and high frequency radio products for wireless communications. The
company's products are used worldwide by leading manufacturers of wireless communications systems.
...Hope this helps, I'm thinking of adding to my position at this price! Richard. |
