To All:
The third quarter 1997 earnings report is in so here it is.
Celeritek Reports Third Quarter Results
SANTA CLARA, Calif., Jan. 14 /PRNewswire/ -- Celeritek Inc , a manufacturer of products for the wireless communications
market, today reported financial results for the third quarter and first nine months of fiscal 1997.
For the quarter ended December 31, 1996, Celeritek reported revenues of $10,565,000 compared with revenues of
$10,150,000 for the same period a year ago. Net income for the third quarter was $712,000, or $0.10 per share, versus net
income of $633,000, or $0.11 per share, for the same period a year ago.
For the first nine months of fiscal 1997, the company reported revenues of $33,740,000 compared with revenues of
$26,884,000 for the first nine months of fiscal 1996. Net income for the period increased to $2,643,000, or $0.36 per share,
versus net income of $1,232,000, or $0.23 per share, for the first nine months of fiscal 1996. Per share amounts for the third
quarter and first nine months of fiscal 1997 reflect the effect of the company's initial public offering of two million shares which
was completed in December, 1995, and increased weighed average shares by approximately 32 and 34 percent respectively
compared to the same periods in fiscal 1996.
Celeritek said sales from the commercial market in the third quarter of fiscal 1997 decreased 36 percent over the same period
in the prior year and increased seven percent during the first nine months of fiscal 1997 over the comparable period a year ago.
Sales from this sector accounted for approximately 64 percent of total sales in the first nine months of fiscal 1997 compared
with 75 percent for the same period in fiscal 1996. Commercial sales in the third quarter were impacted by later than expected
placement of several key orders.
"As we indicated last month, we expect this to impact revenues and net income for the next two quarters," said Tamer Husseini,
president and chief executive officer of Celeritek.
"However, I continue to be optimistic about the markets we serve and the technical quality of our products," he continued. "We
are gearing up to produce the $13 million in new orders we announced last month."
In December, 1996, Celeritek announced a $5 million agreement with a major VSAT (very small aperture terminal) network
provider to produce VSAT transmitters. This agreement expands upon a development contract announced in October and
shipments of the product are expected to begin in mid-1997. The company also announced an $8 million order from P Com
Inc to produce 38 GHz outdoor units (ODUs) for use in P-COM's high density, high volume, point-to-point data transmission
radio systems. This order was an expansion of a manufacturing contract Celeritek received in April.
"These orders represent the significant opportunities available to the company in that they are for higher level assembly products
in growing markets and with industry leaders," Husseini noted.
Celeritek, Inc., designs and manufactures high frequency radio products that provide core transmit and receive functions for
wireless communications. The company's products are used worldwide by leading manufacturers of wireless communications
systems.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Act of 1934. Actual results could differ materially from those projected in the forward-looking statements
as a result of known and unknown risk factors and uncertainties. Such factors may include, but are not necessarily limited to,
the timing, cancellation or delay of customer orders; the mix of products sold; changes in manufacturing capacities and
variations in the utilization of this capacity; market acceptance of the company's and its customers' products; variations in
manufacturing yields and other competitive factors. Reference is made to the discussion of risk factors detailed in the
Company's filings with the Securities and Exchange Commission, including its reports on Form 10-K and 10-Q.
CELERITEK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1996 1995 1996 1995
Total Net Sales $10,565 $10,150 $33,740 $26,884
Cost of Goods Sold 7,013 6,480 21,620 17,219
Gross Profit 3,552 3,670 12,120 9,665
Operating expenses:
1996
(Unaudited) (Note)
ASSETS
Current assets:
Cash and cash equivalents $4,789 $3,311
Short-term investments 8,750 7,500
Accounts receivable, net 11,282 9,675
Inventories 6,592 6,398
Prepaid expenses and
other current assets 336 126
Deferred tax assets 1,703 1,703
Total current assets 33,452 28,713
Property and equipment, net 6,349 5,121
Other assets 43 43
Total assets $39,844 $33,877
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,057 $2,145
Accrued payroll 1,513 1,156
Accrued liabilities 4,135 2,657
Total current liabilities 8,705 5,958
Shareholders' equity 31,139 27,919
Total liabilities and
shareholders' equity $39,844 $33,877
NOTE: The balance sheet at March 31, 1996 has been derived from the audited financial statements at that date but does not
include all the information and footnotes required by generally accepted accounting principles for complete financial statements.
SOURCE Celeritek Inc. |
