Digital Microwave-DMIC .report four
Digital Microwave Corporation Reports Record Results For Third
Quarter Fiscal Year 1998
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 14, 1998--Digital Microwave Corporation (NASDAQ:DMIC - news) today reported record third quarter fiscal 1998 sales of $72.0 million, a 51% increase over sales of $47.8 million in the third quarter of the prior fiscal year.
Net income for third quarter fiscal 1998 was $8.9 million, an increase of 126% from net income of $3.9 million in the third quarter of the prior fiscal year. Diluted earnings per share doubled to $0.22 compared to diluted earnings per share of $0.11 in the third quarter of the prior fiscal year.
Sales increased 55% for the first nine months of fiscal 1998 to $195.8 million, compared to sales of $126.1 million for the first nine months of fiscal 1997. For the first nine months of fiscal 1998, the Company reported net income of $22.1 million and diluted earnings per share of $0.56, compared with net income of $7.2 million and diluted earnings per share of $0.22 for the first nine months of the prior fiscal year.
During the third quarter of fiscal 1998, the Company received $74.2 million in new bookings shippable over the next 12 months compared with $48.7 million in orders for the same period last year, an increase of 52%. The 12-month backlog at December 31, 1997 was $103.5 million.
''We continue to be pleased with the strong customer demand for our products,'' said Charles D. Kissner, Chairman and Chief Executive Officer. ''Our worldwide sales and customer support presence and broad product line have fueled another quarter of revenue and profitability increases. Despite obvious generic economic pressures in the Asia-Pacific region, total worldwide demand remains high. Asia-Pacific orders were healthy at $18.4 million. Orders in Europe were strong, as expected, at $29.0 Million, and include the first order for our new Altium high-capacity system. Our momentum in the Americas continued with $26.8 million in new orders, up 106% from Q3 of last year.''
''We announced last month our intention to merge with MAS Technology, Ltd. of New Zealand. This merger continues to be on track to close during Q4 of fiscal 1998,'' Kissner continued. ''Our Granger subsidiary, acquired approximately nine months ago, exhibited strong performance as its U.S. engineering and installation business grew. These recent developments, combined with increasing customer activity on new products, and other initiatives under way and under development, are moving the Company toward its long-term strategic vision of becoming the leader in wireless interconnection solutions.''
The statements in this press release that relate to future events or the Company's future performance 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. Also, there can be no assurance that the proposed merger with MAS Technology, Ltd. will be consummated during Q4 fiscal 1998, if at all. For a discussion of such factors, see the ''Risk Factors'' section of the Prospectus dated March 13, 1997 and ''Management's Discussion and Analysis of Financial Results - Factors That May Affect Future Financial Results'' in the Company's Form 10-K for the fiscal year ended March 31, 1997.
Headquartered in San Jose, Digital Microwave Corporation designs, manufactures, and markets advanced wireless solutions for worldwide telephone network interconnection and access. Transmitting and receiving multiple digital lines, Digital Microwave's high-performance radios carry voice, data, and digitized video signals across a full spectrum of frequencies and capacities.
Digital Microwave Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1997 1996 1997 1996
Net Sales $ 71,950 $ 47,760 $ 195,790 $ 126,092
Cost of Sales 45,675 31,862 126,298 84,547
Gross profit 26,275 15,898 69,492 41,545
Operating Expenses:
Research and
development 3,968 2,505 11,159 7,433
Selling, general
and administrative 12,141 9,076 33,811 25,705
Total operating
expenses 16,109 11,581 44,970 33,138
Operating income (loss) 10,166 4,317 24,522 8,407
Other income (expense) (318) 42 (3) (443)
Income before income tax 9,848 4,359 24,519 7,964
Tax provision 985 436 2,452 796
Net income $ 8,863 $ 3,923 $ 22,067 $ 7,168
Basic earnings
per share $ 0.23 $ 0.12 $ 0.59 $ 0.22
Diluted earnings
per share $ 0.22 $ 0.11 $ 0.56 $ 0.22
Basic weighted average
shares outstanding 38,009 32,194 37,634 31,941
Diluted weighted
average shares
outstanding 39,841 34,119 39,615 33,275
Digital Microwave Corporation
Condensed Consolidated Balance Sheets
(in thousands)
December 31, March 31,
1997 1997
(unaudited)
Assets
Cash and short-term investments $ 30,683 $ 58,314
Accounts receivable, net 65,459 44,623
Inventories, net 51,717 45,900
Other current assets 7,435 3,643
Total current assets 155,294 152,480
Property & equipment, net 22,128 17,726
Other Assets 15,553 --
Total assets $192,975 $170,206
Liabilities and Stockholders' Equity
Line of credit $ -- $ 2,016
Capital lease obligations - current 427 681
Accounts payable 23,979 22,890
Income taxes payable 1,318 1,649
Other accrued liabilities 21,363 25,284
Total current liabilities 47,087 52,520
Capital lease obligations - long term 156 158
Total liabilities 47,243 52,678
Stockholders' equity 145,732 117,528
Total liabilities and stockholders'
equity $192,975 $170,206
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