bobp, I have 4, too, but you will soon beat me. ;o)
MWAV report card and future looks good.
Hope MWAV will multiply and grow 4 fold every year <g>
----------------
Tuesday April 25, 5:10 pm Eastern Time
Company Press Release
SOURCE: M~Wave, Inc.
M~Wave Announces First Quarter Results
BENSENVILLE, Ill., April 25 /PRNewswire/ -- M~Wave, Inc. (Nasdaq: MWAV -
news), a manufacturer of high performance printed circuit boards used in wireless communications, announced a net income of
$167,000 or $0.07 per share, for the first quarter ended March 31, 2000, compared with a net income of $10,000 or $0.00
per share a year ago. Net sales for the first quarter of 2000 were $5,372,000 up 46% from the first quarter of 1999.
``We remain excited about our future in 2000,'' said Joseph A. Turek, Chairman and Chief Executive Officer, ``we are on
track to exceed 1999 revenues by up to 100% with sales ranging from $15,000,000 to $25,000,000.''
Cash levels increased to $2,783,000 at March 31, 2000, up $196,000 from the year ended December 31, 1999. Inventories
increased to $3,271,000, up $1,240,000 from the year ended December 31, 1999. ``The increase in inventory was no
surprise since it was a direct result of increased sales and an inventory consignment agreement with Lucent,'' said Paul Schmitt,
Chief Financial Officer, ``we expect our investment in inventory to again increase in the second quarter of 2000.''
Capital expenditures were approximately $32,000 for the first quarter of 2000. M~Wave expects to spend an additional
$700,000 in the next nine months to improve our manufacturing processes. The planned capital expenses will be funded by
operations.
Join M~Wave on its quarterly Conference call at 4 pm CST at 703-736-7293 or on the internet by Vcall. For information on
how to ``attend'' this virtual conference call, log in at vcall.com .
About M~Wave:
Established in 1988 and headquartered in the Chicago suburb of Bensenville, Ill., M~Wave is a manufacturer of high
performance printed circuits through its wholly owned subsidiary Poly Circuits. The Company's products are used in a variety
of telecommunications applications for wireless and Internet communications. M~Wave services customers like Lucent
Technologies and Motorola, Inc. with its patented bonding technology, Flexlink IITM. The Company trades on the Nasdaq
SmallCap market under the symbol ``MWAV.'' Visit the Company on its web site at www.mwav.com .
This news release contains predictions, estimates and other forward-looking statements that involve a number of risks and
uncertainties. While this outlook represents our current judgement on the future direction of the business, such risks and
uncertainties could cause actual results to differ materially from any future performance suggested above. Factors that could
cause actual results to differ include the following: dependence on suppliers and subcontractors for circuit board components;
successful award of contracts under bid; a highly competitive environment; design and production delays; cancellation or
reductions of contract orders; effective utilization of existing and new manufacturing resources; pricing pressures by key
customers; and other factors detailed in the Company's Securities and Exchange Commission filings.
For more information on M~Wave via fax, free of charge, dial 1-800-PRO-INFO and enter the ticker ``MWAV''
M~WAVE, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended March 31,
1999 2000
Net sales $3,682,818 $5,372,185
Cost of goods sold 2,906,236 4,598,236
Gross profit 776,582 773,949
Operating expenses:
General and administrative 437,159 335,324
Selling and marketing 175,284 181,359
Total operating expenses 612,443 516,683
Operating income 164,139 257,266
Other income (expense):
Interest income 32,280 19,839
Interest expense (46,391) (51,068)
Rental income 8,000 51,000
Gain (loss) on disposal of assets (135,084) 0
Total other income (expense) (141,195) 19,771
Income before income taxes 22,944 277,037
Provision for income taxes 13,204 109,518
Net income $9,740 $167,519
Net income per share basic and diluted $0.00 $0.07
Weighted average shares 2,267,842 2,272,994
M~WAVE, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, March 31
1999 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $2,586,885 $2,783,379
Accounts receivable, net of allowance
for doubtful accounts,
1999- $10,000: 2000 $10,000 2,520,070 2,530,298
Inventories 2,030,417 3,270,740
Deferred income taxes 1,080,940 793,475
Prepaid expenses and other 71,957 76,883
Total current assets 8,290,269 9,454,775
PROPERTY, PLANT AND EQUIPMENT:
Land, buildings and improvements 4,863,247 4,863,247
Machinery and equipment 7,934,816 7,966,379
Total property, plant and
equipment 12,798,063 12,829,626
Less accumulated depreciation (5,855,688) (6,112,188)
Property, plant and equipment-net 6,942,375 6,717,438
NOTE RECEIVABLE 645,391 645,391
OTHER ASSETS 4,700 4,995
TOTAL $15,882,735 $16,822,599
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $1,974,067 $2,915,420
Accrued expenses 508,456 560,662
Accrued income taxes 0 8,116
Current portion of long-term debt 361,563 361,563
Total current liabilities 2,844,086 3,845,761
DEFERRED INCOME TAXES 676,273 490,208
LONG-TERM DEBT 1,886,799 1,796,409
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; authorized,
1,000,000 shares; no shares issued 0 0
Common stock, $.01 par value; authorized,
10,000,000 shares
3,069,806 shares issued and 2,266,342
shares outstanding at December 31, 1999,
3,084,306 shares issued and 2,280,842
shares outstanding at March 31, 2000 30,698 30,843
Additional paid-in capital 8,348,832 8,395,812
Retained earnings 3,775,321 3,942,840
Treasury stock: 803,464 shares,
at cost (1,679,274) (1,679,274)
Total stockholders' equity 10,475,577 10,690,221
TOTAL $15,882,735 $16,822,599
M~WAVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended March 31,
1999 2000
OPERATING ACTIVITIES:
Net loss $9,740 $167,519
Adjustments to reconcile net loss to
net cash flows from operating activities:
Gain (loss) on disposal of property,
plant and equipment $135,084 $0
Depreciation and amortization $249,460 $256,500
Deferred income taxes $87,168 $101,400
Changes in assets and liabilities:
Accounts receivable-trade ($209,705) ($10,228)
Inventories $296,091 ($1,240,323)
Income taxes ($73,962) $8,116
Prepaid expenses and other assets ($47,623) ($5,221)
Accounts payable $155,349 $941,353
Accrued expenses ($31,495) $52,206
Net cash flows from
operating activities $570,107 $271,322
INVESTING ACTIVITIES:
Purchase of property, plant and equipment ($163,921) ($31,563)
Purchase marketable securities $4,619 $0
Proceeds from sale of PC Dynamics property,
plant and equipment $581,965 $0
Proceeds from sale of PC Dynamics net
working capital and other $311,354 $0
Net cash flows from investing activities $734,017 ($31,563)
FINANCING ACTIVITIES:
Common stock issued upon exercise
of stock options $0 $47,125
Payments on long term debt ($100,932) ($90,390)
Net cash flows from financing activities ($100,932) ($43,265)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS $1,203,192 $196,494
CASH AND CASH EQUIVALENTS
- Beginning of period $3,712,537 $2,586,885
CASH AND CASH EQUIVALENTS
- End of period $4,915,729 $2,783,379
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for interest ($46,391) ($51,068) |
