Spectrian announces (lousy) earnings/authorizes stock repurchase.
biz.yahoo.com
Wednesday April 29, 4:45 pm Eastern Time
Company Press Release
Spectrian Announces Fiscal 1998 Fourth Quarter and
Year End Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 29, 1998--Spectrian (NASDAQ:SPCT -
news), the leading independent supplier of ultra linear, high power RF amplification systems, today announced financial results for the quarter and fiscal year ended March 31, 1998.
The Company reported revenues for the fourth quarter of fiscal 1998 of $27.6 million, down from $31.6 million for the same period a year ago. The Company incurred a net loss for the fourth quarter of $10.2 million which represented a net loss per share of $0.93 on both a basic and diluted loss per share basis. This loss compares with net income of $1.5 million, or $0.18 per share on both a basic and diluted basis, for the same quarter a year ago.
Commenting on the quarter, Spectrian president and chief executive officer Garrett A. Garrettson stated, ''While we are disappointed with the financial results of the fourth quarter, fiscal 1998 was an outstanding year with an increase of almost 91 percent in revenue.''
A negative gross margin of 17.4 percent was incurred for the fourth quarter as compared to a positive gross margin of 27.2 percent in the same quarter a year ago. This lower gross margin was largely attributable to weaker market demand, especially in Korea, increased material, warranty, excess and obsolete inventory costs, and an overhead structure designed to support higher revenue levels. In aggregate these charges totaled slightly over $7 million in the fourth quarter. On a more normalized operating basis with these charges excluded, gross margins would have been about 8.5 percent with a loss per share of $0.27 in the fourth quarter.
For the twelve months ended March 31, 1998, revenues totaled $168.8 million, an increase of 91 percent from $88.3 million for the total year in fiscal 1997. Net income for fiscal 1998 totaled $8.9
million. Basic earnings per share for the twelve month period were $0.90 and diluted earnings per share for the twelve month period were $0.83. These figures compare to a net loss of $4.0 million, or $0.49 per share on both a basic and diluted basis for fiscal 1997.
Spectrian's balance sheet at March 31, 1998 included $95.6 million in cash, cash equivalents and short-term investments, an increase of $89.4 million from the Company's fiscal 1997 ending balances at March 31, 1997. The increase was substantially attributable to the Company's two million share equity offering during the second quarter.
Looking forward Mr. Garrettson noted, ''Fiscal 1999 will be the year for Spectrian to focus on operational excellence as we work our way through the current pause in our growth. While we expect that revenues will remain relatively low for another two quarters, our goal is to reduce operating expenses and improve profitability as the year progresses.''
The Company also announced today, in a separate press release, that the Board of Directors has authorized a stock repurchase program. Under the program the Company can buy up to one million
shares representing about 9.2 percent of outstanding common shares.
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 CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Twelve months ended
March 31, March 31,
1998 1997 1998 1997
------------------ -------------------
Revenues $ 27,633 $ 31,572 $168,798 $88,252
Costs and expenses:
Cost of product sales 32,451 22,981 132,684 65,322
Research and
development 5,190 4,394 18,644 17,230
Selling, general and
administrative 3,078 2,679 13,013 9,299
-------- -------- -------- --------
40,719 30,054 164,341 91,851
-------- -------- -------- --------
Operating income (loss) (13,086) 1,518 4,457 (3,599)
Interest income 1,330 3 3,335 (392)
(expense), net
Other income, net -- -- 1,530 --
-------- -------- -------- --------
Income (loss) before
income taxes (11,756) 1,521 9,322 (3,991)
Income tax expense (1,589) -- 400 --
-------- -------- -------- --------
Net income (loss) $(10,167) $ 1,521 $ 8,922 $ (3,991)
======== ======== ========== ========
Net income (loss) per
share
Basic $(0.93) $0.18 $0.90 $(0.49)
Diluted $(0.93) $0.18 $0.83 $(0.49)
Shares used in computing
per share amounts:
Basic 10,898 8,255 9,881 8,150
Diluted 10,898 8,422 10,701 8,150
SPECTRIAN CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, March 31,
1998 1997
--------- ----------
Assets
Current assets:
Cash and cash equivalents $ 31,460 $ 6,240
Short-term investments 68,128 --
Accounts receivable, less allowance for
doubtful accounts of $376 and $365,
respectively 21,123 15,825
Inventories 15,362 17,301
Prepaid expenses and other current assets 6,202 1,806
-------- -------
Total current assets 142,275 41,172
Property and equipment, net 32,776 25,461
-------- -------
$175,051 $ 66,633
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of debt obligations $ 1,360 $ 1,588
Accounts payable 10,456 8,101
Accrued liabilities 12,981 7,421
-------- -------
Total current liabilities 24,797 17,110
Debt obligations, net of current portion 5,912 7,057
-------- -------
Total liabilities 30,709 24,167
-------- -------
Stockholders' equity:
Common stock, $0.001 par value, 20,000,000
shares authorized; 10,904,077 and 8,265,230
shares issued and outstanding, respectively 11 8
Additional paid-in capital 146,217 53,387
Unrealized gain on short-term investments 121 --
Retained earnings (accumulated deficit) (2,007) (10,929)
-------- -------
Total stockholders' equity 144,342 42,466
-------- -------
175,051 66,633
======== =======
Contact:
Spectrian, Sunnyvale
Peter McIntyre, 408/745-5437
peter_mcintyre@spectrian.com |
