[DMIC Q4 EPS of $0.10 beats consensus analyst estimates by 25%.]
Wednesday April 26, 4:30 pm Eastern Time
Company Press Release
SOURCE: Digital Microwave Corporation
Digital Microwave Corporation Reports Fourth Quarter and Fiscal Year 2000 Results
Company Posts Record Quarterly Orders of $107.8 Million, Net Income Of $7.3 Million
SAN JOSE, Calif., April 26 /PRNewswire/ -- Digital Microwave Corporation (Nasdaq: DMIC)
today reported financial results for the fourth quarter and fiscal year 2000 ended
March 31, 2000. Net sales for the fourth quarter totaled $88.6 million, a 48 percent
increase compared to sales of $59.7 million in the fourth quarter of fiscal 1999.
Net income for the fiscal 2000 fourth quarter was $7.3 million, or $0.10 per share,
compared to the fiscal 1999 fourth quarter's net loss of $2.7 million, or $0.04 per share.
For the fiscal year 2000, DMC reported sales of $300.5 million, a 27 percent increase
compared to $236.5 million in fiscal year 1999. Net income for fiscal year 2000 was
$12.1 million, or $0.17 per share compared to a net loss of $96.7 million, or $1.57
per share, including merger, restructuring and inventory valuation charges of
$67.7 million, for fiscal year 1999.
New orders for the fiscal 2000 fourth quarter were at an all-time high for DMC. During
the fiscal 2000 fourth quarter, the company received $107.8 million in new orders,
compared to $65.2 million in the fourth quarter of fiscal 1999, an increase of 65 percent.
New orders for the year were $351.1 million, an increase of 49 percent compared to orders
during fiscal year 1999 of $234.9 million. The backlog as of March 31, 2000, was $111.8 million.
In March 2000, the Company sold 1,347,368 shares of stock from a shelf registration filed
previously with the SEC. The Company received net proceeds of approximately $44.8 million
from the sale before expenses, intended for general corporate purposes and potential
strategic investments. For fiscal year 2000, the Company sold 4,797,368 shares of
stock and received approximately $100 million in net proceeds before expenses, from
the shelf registration.
``We are extremely pleased with the dramatic improvement of DMC's business results over
last year,'' said Charles D. Kissner, DMC Chairman and CEO. ``These results are an
accumulation of our focused efforts over the past few years to turn the company into
the exciting, dynamic and growing organization that it is today.''
``Demand for the Altium(TM) high-capacity SONET/SDH radio was strong with orders of
$24.4 million, up by 33 percent over the third quarter and by six-fold compared to Q4
of fiscal year 1999,'' said Sam Smookler, DMC President and COO. ``With the shipment
of the 38 GHz Altium in March, combined with our vast array of other broadband wireless
access products now shipping, we have the leading broadband wireless access product set
available.''
``With this solid financial performance, broad solutions and global strength, we are
well positioned for continued success in the markets we serve, which are forecast to
grow substantially over the next three to five years,'' said Kissner.
Headquartered in San Jose, Calif., DMC provides wireless solutions to connect, enable
and grow communications networks worldwide. The company's industry-leading broadband,
medium-capacity and low-capacity radios transport data, voice and video for public and
private networks in a wide range of global environments. DMC brings value to a diverse
range of customers through its vast array of quality systems, services and support.
Additional information on DMC can be found on the Company's web site at www.dmcwave.com.
The statements in this press release that relate to demand for the Company's broadband
wireless products, its positioning for continued success, and forecasts for market
growth 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, and competition
in the microwave and access business. For a discussion of such factors, see the ``Risk
Factors'' in the Company's Form S-3, which was declared effective by the SEC on
October 1, 1999.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
March 31, March 31,
2000 1999 2000 1999
(unaudited)
Net Sales $88,588 $59,725 $300,503 $236,499
Cost of Sales 59,893 44,002 209,653 185,493
Inventory Valuation
Charges 0 0 0 37,739
Gross profit 28,695 15,723 90,850 13,267
Operating Expenses:
Research and
development 6,119 6,014 24,372 24,131
Selling, general
and administrative 14,825 11,461 51,953 55,342
Merger and
Restructuring charges 0 0 0 29,941
Total operating expenses 20,944 17,475 76,325 109,414
Operating income (loss) 7,751 (1,752) 14,525 (96,147)
Other income (loss) 1,394 (823) 645 25
Income (loss) before
income taxes 9,145 (2,575) 15,170 (96,122)
Provision for
income taxes 1,829 85 3,034 607
Net Income (loss) $7,316 ($2,660) $12,136 ($96,729)
Basic earnings (loss)
per share $0.10 ($0.04) $0.18 ($1.57)
Diluted earnings
(loss) per share $0.10 ($0.04) $0.17 ($1.57)
Basic weighted average
shares outstanding 70,548 61,849 65,922 61,601
Diluted weighted
average shares
outstanding 76,010 61,849 71,642 61,601
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, March 31,
2000 1999
Assets
Cash and short-terms
investments $123,942 $27,263
Accounts receivable, net 98,520 60,253
Inventories 48,547 50,610
Other current assets 11,201 15,836
Total current assets 282,210 153,962
Property & equipment, net 43,801 43,025
Other assets 11,430 5,177
Total assets $337,441 $202,164
Liabilities and Stockholders' Equity
Current maturities of
capital lease obligations
and notes payable $167 $1,587
Accounts payable 39,582 25,116
Other current liabilities 33,300 42,012
Total current liabilities 73,049 68,715
Long-term liabilities 0 2,236
Total liabilities 73,049 70,951
Stockholders' equity 264,392 131,213
Total liabilities and
stockholders' equity $337,441 $202,164
SOURCE: Digital Microwave Corporation |
