The second half of this release is very interesting:
Eagle Wireless Reports Second Quarter Fiscal 1999
Results
Sales and Earnings Rise in the First Half of Fiscal 1999
HOUSTON--(BUSINESS WIRE)--April 16, 1999--Eagle Wireless International, Inc. (OTC BB:EGLW) today reported its
unaudited results for the three and six months ended February 28, 1999.
Sales in the first half of fiscal 1999 rose slightly to $1,657,985 from $1,621,803 for the same period last year. Net income also
improved to $149,352, or $.01 per share, for the first half of fiscal 1999 as compared to $121,421, or $.01 per share, in the
same period last year.
Sales for the second quarter fiscal 1999 decreased to $727,087 versus $1,063,905 for the comparable period last year,
primarily due to a holiday season lull and lower sales to Eagle's largest customer, Link-Two Communications. Gross profit fell
to $321,068 for the quarter ended February 28, 1999 from $643,513 in the second quarter fiscal 1998, partly resulting from
greater warranty labor expenses associated with the failure of a vendor supplied component. The Company said it is working
with the vendor to eliminate the problem.
Net income for the second quarter fiscal 1999 was $53,597, or $.01 per share, as compared to $96,133, or $.01 per share,
for the same period last year. The decrease in earnings is partially attributed to greater R&D expenditures for the Company's
planned product expansion into the multi-billion dollar market for Internet set-top devices.
As of February 28, 1999, cash and receivables rose to $6,783,607, total assets increased to $8,769,902, and shareholders'
equity grew to $7,733,449. The Company had working capital of $7,053,131 and total long-term debt of $16,926 at the close
of the second quarter fiscal 1999.
''This quarter we continued our efforts to diversify our core product lines with the development of two-way messaging devices
that can be deployed within existing wireless networks, negotiated a $12.6 million purchase order from Utility Automation, and
laid the groundwork for our entrance into the Internet set-top device market,'' said Company President and CEO Dr. H. Dean
Cubley.
''We are continuing to work closely with Compaq Computer and hope to build on this and other contractual research and
development relationships over the next few years,'' Dr. Cubley added.
During the three months ended February 28, 1999, Eagle received a $12.6 million, three-year purchase order from Utility
Automation, Inc. for wireless residential water meters and wireless communication backups for home security systems. Also in
the second quarter fiscal 1999, the Company signed a $1.4 million agreement to provide R&D support to the Advanced
Engineering Group of Compaq Computer Corp. (NYSE:CPQ - news) and a letter of intent with Nikko Japan Company, Ltd.
to form a strategic alliance for the development and distribution of wireless personal communications devices.
-0-
Eagle Wireless International, Inc.
Condensed Consolidated Balance Sheet
As of February 28, 1999 and August 31, 1998
(Unaudited)
(in thousands) February 28, 1999 August 31, 1998
Total current assets $8,090 $7,832
Total assets $8,770 $8,550
Total current liabilities $1,019 $1,019
Total long-term debt $ 17 $ 15
Total shareholders' equity $7,734 $7,516
Eagle Wireless International, Inc.
Condensed Consolidated Statement of Operations
Three and Six Months Ended February 28, 1999 and 1998
(Unaudited)
Three months Three months Six months Six months
ended ended ended ended
Feb. 28, Feb. 28, Feb. 28, Feb. 28,
(in thousands) 1999 1998 1999 1998
Net sales $ 727 $ 1,064 $ 1,658 $ 1,622
Cost of goods sold $ 406 $ 421 $ 826 $ 648
Gross profit $ 321 $ 643 $ 832 $ 974
Operating expenses $ 431 $ 556 $ 967 $ 957
Net income $ 54 $ 96 $ 149 $ 121
EPS
- primary $ .01 $ .01 $ .01 $ .01
- diluted $ .00 $ .01 $ .01 $ .01
Weighted average
shares outstanding
- primary 11,685,157 11,605,334 11,677,656 11,573,667
- diluted 13,320,532 11,989,709 13,313,031 11,958,542
Eagle Wireless International, Inc. is a leading supplier of telecommunications equipment to the paging, specialized mobile radio
(SMR), one and two-way wireless messaging, remote data acquisition, and Internet access markets. The Company is
headquartered in Houston, Texas.
Forward-looking statements in this release are made pursuant to the ''safe harbor'' provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties,
including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products
and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights, and other risks
detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
For additional updates, see www.otcfn.com/eglw and www.eglw.com.
Contact:
Eagle Wireless International
Scott A. Cubley, Investor Relations
(800) 628-3910 / (281) 280-0488
scubley@eglw.com
or
OTC Financial Network
Mario "Ike" Iacoviello, Investor Relations
(800) 649-0983 / (760) 931-9211
ike@otcfn.com
|
