Wednesday July 14, 4:30 pm Eastern Time
Company Press Release
SOURCE: Digital Microwave Corporation
Digital Microwave Corporation Reports First Quarter Financial Results For
Fiscal Year 2000
Profitable; Orders and Sales Increase
SAN JOSE, Calif., July 14 /PRNewswire/ -- Digital Microwave Corporation (Nasdaq: DMIC - news)
today reported results for the first quarter of fiscal year 2000, ended June 30, 1999. Sales
were $66.0 million, compared to sales of $63.2 million for the first quarter of the prior year.
Net income for the first quarter of fiscal year 2000 was $160,000 ($0.00 per share) compared
with a net loss of $15.5 million ($0.25 per share), including restructuring charges, for the
first quarter of the prior year. Without the restructuring charges, the fiscal 1999 first
quarter net loss was $8.3 million ($0.13 per share).
As a result of the merger with Innova Corporation on October 8, 1998, which was accounted for
as a pooling of interests, the financial results for prior periods have been restated.
During the first quarter of fiscal year 2000, the Company received $67.8 million in new orders,
compared to $54.3 million in the first quarter of fiscal year 1999, an increase of 25%.
The backlog at June 30, 1999, was $65.7 million.
''We are extremely pleased to report our return to profitability this quarter,'' commented
Charles D. Kissner, chairman and chief executive officer. ''Our improved financial performance,
together with meaningful top-line growth, is an indication that our new product introductions,
market penetration, and restructuring are working as planned.
''This quarter represented the strongest level of orders in the last five quarters, with new
products (Altium(TM), DART(TM), XP4, and DXR(TM) 700 radios) representing 47% of the total.
Demand also continued to be robust for our Spectrum(TM) II radios. Orders were strong in all
geographic areas. In particular, Asia orders were the strongest we have seen for some time.
An increasing number of combined products orders, in particular Altium(TM)/XP4, Altium(TM)/DART(TM),
and Altium(TM)/DXR(TM) 700 demonstrated the leverage of our new, broader product line offerings.
''We also began shipments of our new ProVision(TM) network management system, the software
solution that unifies network management of all Digital Microwave products in one system.
''During the quarter, we opened a new Service Center for our Asia/Pacific customers in the
Clark Economic Zone in the Philippines. A key addition to our Scotland and California
centers, it enhances our full-service support to our many customers worldwide.
''These and other accomplishments by our dedicated global team lay the foundation for continued
financial progress and increasing support to our growing customer base. We believe momentum is
growing, and we plan to capitalize on that momentum with additional new products and market
initiatives during this fiscal year.''
The statements in this press release that relate to the impact of new product introductions,
market penetration, restructuring and the Company's momentum 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. For a discussion of such factors, see the ''Risk
Factors'' in the Company's Form 10-K filed with the SEC on June 29, 1999.
Headquartered in San Jose, California, Digital Microwave Corporation provides microwave radio
solutions to connect, enable and grow communications networks worldwide. The Company's broadband
to medium- and low-capacity radios transport data, voice, and video for public and private
networks in metropolitan to rural environments. Digital Microwave Corporation brings value to
customers through its vast array of quality systems, services and support.
For more information, visit the Company's web site at www.dmcwave.com.
NOTE: Altium, DART, DXR and ProVision are trademarks of Digital Microwave Corporation.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
June 30,
1999 1998
(unaudited)
Net Sales $65,954 $63,211
Cost of Sales 47,837 49,502
Gross profit 18,117 13,709
Operating Expenses:
Research and development 5,768 6,583
Selling, general and administrative 11,513 16,272
Merger and Restructuring charges 0 7,213
Total operating expenses 17,281 30,068
Operating income (loss) 836 (16,359)
Other income (expense) (636) 905
Income (loss) before income taxes 200 (15,454)
Provision for income taxes 40 28
Net Income (loss) $160 ($15,482)
Basic earnings (loss) per share $0.00 ($0.25)
Diluted earnings (loss) per share $0.00 ($0.25)
Basic weighted average shares outstanding 62,886 61,351
Diluted weighted average shares outstanding 68,060 61,351
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
June 30, March 31,
1999 1999
(unaudited)
Assets
Cash and short-terms investments $23,383 $27,263
Accounts receivable, net 75,659 60,253
Inventories 46,922 50,610
Other current assets 10,695 15,836
Total current assets 156,659 153,962
Property & equipment, net 42,216 43,025
Other Assets 5,037 5,177
Total assets $203,912 $202,164
Liabilities and Stockholders' Equity
Current maturities of capital lease
obligations and notes payable $1,574 $1,587
Accounts payable 29,646 25,116
Other current liabilities 37,390 42,012
Total current liabilities 68,610 68,715
Long-term liabilities 2,039 2,236
Total liabilities 70,649 70,951
Stockholders' equity 133,263 131,213
Total liabilities and stockholders' equity $203,912 $202,164
SOURCE: Digital Microwave Corporation |
