California Amplifier Reports Fiscal 2000 Second Quarter Results
CAMARILLO, Calif., Sept. 9 /PRNewswire/ -- California Amplifier, Inc. (Nasdaq: CAMP) today reported results for its fiscal year 2000 second quarter and six months ended August 28, 1999.
Second quarter sales increased $10,253,000, or 123%, to $18,575,000, compared to sales of $8,322,000 for the second quarter of fiscal year 1999. Second quarter net income was $901,000, or $0.07 per fully diluted share, compared to a net loss of $837,000, or $0.07 per diluted share, for the second quarter ended August 29, 1998.
Sales for the six month period increased $14,286,000, or 82%, to $31,668,000 compared to sales of $17,382,000 for the six month period of the prior year. Six month net income was $1,259,000, or $0.10 per fully diluted share, compared to a net loss of $1,322,000, or $0.11 per diluted share, for the six month period of fiscal year 1999.
The fully diluted earnings per share calculation includes the dilutive effects of stock options outstanding and assumes an additional 525,000 shares outstanding relating to the convertible debt issued in connection with the Company's acquisition of Gardiner Communications Corporation in April 1999.
Fred Sturm, Chief Executive Officer, commented, "The significant increase in sales and earnings both in the second quarter and in the first six months of fiscal year 2000 resulted primarily from strong shipments of U.S. DBS satellite products. Wireless product shipments continue to be weak, as the U.S. industry has reduced its MMDS video equipment purchases while it evaluates the roll-out of two-way voice and data and as many international markets cope with lack of capital availability. We are awaiting a definitive roll-out timeframe by U.S. operators as they finalize their two-way MMDS strategies and do not currently expect any meaningful demand for two-way wireless products before our fiscal year 2001, which begins in March 2000."
Mr. Sturm continued, "We continue to focus our design resources for future sales growth opportunities in two major market segments. Our development in fixed-point broadband wireless is centered on transceiver products for two-way telephony and Internet applications for businesses and consumers utilizing MMDS, WCS, MDS and ISM bands. In satellite communications our efforts are geared toward next generation satellite DBS products for video distribution and high-speed data delivery."
The statements with respect to sales and new product design discussed in this press release may be forward looking statements that involve risks and uncertainties, including without limitation, product demand, sales mix, competitive products, acceptance of new products, timing of new product introductions, and other risks and uncertainties that are detailed from time to time in the Company's SEC reports, including Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of the Company's most recent Form 10-Q and Form 10-K can be obtained from the Company on request.
California Amplifier, ISO 9001 certified, designs, markets and manufactures a broad line of microwave amplifiers, downconverters, antennas, and integrated fixed point solutions used primarily in conjunction with satellite video and terrestrial broadband applications. The Company's satellite business unit designs and markets reception components for the worldwide DBS television market as well as consumer and commercial products for both C-band and Ku band applications. The Wireless business unit designs and markets integrated reception solutions and MultiCipher(R), a proprietary broadband scrambling conditional access system, for the Wireless Cable (MMDS) industry. The Voice & Data business unit designs and markets two-way wireless solutions for voice, video, telephony, and networking applications. Micro Pulse, a consolidated 50.5% ownership investment, designs, markets and manufactures antennas for a broad range of wireless applications historically for GPS applications.
CALIFORNIA AMPLIFIER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)
Three Months Ended Six Months Ended
Aug. 28, Aug. 29, Aug. 28, Aug. 29,
1999 1998 1999 1998
Sales $18,575 $8,322 $31,668 $17,382
Cost of sales 13,331 6,383 22,511 12,650
Gross profit 5,244 1,939 9,157 4,732
Research and
development 1,331 1,271 2,530 2,487
Selling 1,217 1,155 2,337 2,401
General and
administrative 1,166 957 2,233 2,028
Income (loss)
from operations 1,530 (1,444) 2,057 (2,184)
Interest and
other, net (70) (11) (39) (17)
Minority interest's
share in (income) loss,
of Micro Pulse (53) 147 (51) 135
Income (loss) before
taxes 1,407 (1,308) 1,967 (2,066)
(Provision) benefit
for income taxes (506) 471 (708) 744
Net income (loss) $901 $(837) 1,259 $(1,322)
Net income (loss)
per share Basic $.08 $(.07) $.11 $(.11)
Diluted $.07 $(.07) $.10 $(.11)
Shares used
in per share
calculations Basic 11,894 11,785 11,849 11,782
Diluted 13,450 11,785 12,825 11,782
SALES BY PRODUCT LINE:
Three Months Ended Six Months Ended
Aug. 28, Aug. 29, Aug. 28, Aug. 29,
1999 1998 1999 1998
Satellite Products $13,000 $3,099 $20,031 $5,301
Wireless Products 3,984 4,210 8,953 9,762
Antenna Products 1,591 1,013 2,684 2,319
Total $18,575 $8,322 $31,668 $17,382
CALIFORNIA AMPLIFIER, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
Aug. 28, Feb. 27,
1999 1999
ASSETS
Current assets:
Cash and cash equivalents $7,186 $9,312
Accounts receivable, net 10,810 5,002
Inventories 4,887 3,974
Deferred tax asset 988 1,597
Prepaid expenses and
other current assets 552 446
Total current assets 24,423 20,331
Property and equipment, at cost,
net of accumulated depreciation
and amortization 5,986 4,498
Goodwill, net of amortization 3,748 --
Other assets 859 720
$35,016 $25,549
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,002 $2,644
Accrued liabilities 3,347 1,613
Short-term debt and current
portion of long-term debt 3,641 597
Total current liabilities 12,990 4,854
Long-term debt 275 516
Minority interest share in
net assets of Micro Pulse, Inc. 147 114
Stockholders' equity:
Preferred stock, 3,000 shares
authorized; no shares outstanding -- --
Common stock, $.01 par value;
30,000 shares authorized;
11,952 shares outstanding in
August 1999 and 11,785 shares
outstanding in February 1999 120 118
Additional paid-in capital 14,403 14,050
Accumulated other comprehensive income (245) (170)
Retained earnings 7,326 6,067
Total stockholders' equity 21,604 20,065
$35,016 $25,549
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SOURCE: California Amplifier, Inc.
CONTACT: Michael Ferron, Chief Financial Officer of California Amplifier, Inc., 805-987-9000; or Alex Wellins, or Jennifer Jarman, 415-296-7383, or Patricia Walsh, 212-850-5600, or Eric Gonzales, 212-850-5698, all of Morgen-Walke Associates, for California Amplifier |
