Vari-L Company Announces Record Second Quarter Results
Net Income Increases 15% in Quarter, 22% at Six-Month Mark; Revenue Up 26% in Quarter, 29% Year-to-Date
DENVER, July 21 /PRNewswire/ -- Vari-L Company, Inc. (Nasdaq: VARL - news), a leading provider of advanced components for the wireless telecommunications industry, today announced record sales and earnings for the second quarter and six-month period ended June 30, 1999.
The Company reported record net income of $747,000, or 14 cents per basic share and 13 cents per diluted share, on revenue that advanced 26% to $5,460,000 in the second quarter versus net income of $652,000, or 12 cents per basic share and 11 cents per diluted share, on revenue of $4,331,000 in the same quarter a year ago.
For the six-month period, Vari-L reported a 22% rise in net income to $1,501,000, or 27 cents per basic and diluted share, on revenue of $10,773,000 versus net income of $1,231,000, or 23 cents per basic share and 21 cents per diluted share, on revenue of $8,376,000 in the same period last year.
''Second quarter financial results exceeded management's expectations, and we are pleased to have extended our track record of consistent sales and earnings growth,'' said Dave Sherman, president and CEO. ''In addition to increasing demand in our traditional infrastructure market, we are starting to see a rampup in commercial subscriber market activity, where we are ideally positioned with leading-edge technology, competitive pricing and high-volume manufacturing capability.''
Vari-L reported a 75% increase in firm customer orders in the second quarter, to nearly $3.9 million from $2.2 million in the same quarter last year. That surge in orders raised six-month order growth by 29% to $7.9 million. As expected, commercial orders led the way, advancing 126% to $3.1 million in the quarter and raising the year-to-date commercial order total to $6.1 million, up 34%. Commercial orders totaled 81% of overall orders in the quarter and 78% at the six-month mark. Military/aerospace orders, which are more prone to short-term fluctuation, declined 11% in the quarter but are up a healthy 14% at the mid-year point to $1.7 million.
Domestic customers accounted for 69% of overall orders in the second quarter and 65% of orders in the six-month period. However, orders from international customers are growing at a faster rate than domestic orders for the comparative three- and six-month periods. In the second quarter international orders grew by 85% compared with 71% growth in domestic orders; and in the six-month period international orders grew by 89% versus 10% growth in domestic orders.
Through its headquarters in Denver, Vari-L designs, manufactures and markets radio- and microwave-frequency signal source and processing components used in the wireless telecommunications industry. Vari-L's patented products are used in a variety of commercial, subscriber and military/aerospace applications, including emerging digital and broadband communications technologies. Vari-L serves a diverse customer base comprised of some of the world's leading technology companies, including California Microwave, Ericsson, Harris, Hughes, IBM, Lockheed Martin, Lucent Technologies, Mitsubishi, Motorola, NEC, Nokia, Northrop Grumman, Raytheon, Samsung, Siemens, Stanford Telecom and Wireless Access. |
