[Q1 FY01 Press Release]
Dan Spalding, (408) 944 1817, dan_spalding@dmcwave.com
FOR IMMEDIATE RELEASE
DIGITAL MICROWAVE CORPORATION REPORTS FIRST QUARTER FINANCIAL
RESULTS FOR FISCAL YEAR 2001
Company Posts Record Quarterly Orders of $126 Million, EPS of $0.12
SAN JOSE, Calif., July 18, 2000 – Digital Microwave
Corporation (NASDAQ: DMIC), one of the world’s foremost
solutions providers for broadband wireless access, today
reported results for the first quarter of fiscal year 2001,
ended June 30, 2000. Sales were $86.7 million, compared to
sales of $66 million for the first quarter of the prior year,
a 31 percent increase.
Net income for the fiscal 2001 first quarter was $9 million,
or $0.12 per share, compared to the fiscal 2000 first
quarter’s income of $160,000, or $0.00 per share.
New orders for the fiscal 2001 first quarter were at
an all-time high for DMC. During the quarter, the company
received $126 million in new orders, compared to $67.8
million in the first quarter of fiscal 2000, an increase of
86 percent.
"DMC again posted record orders, and we are extremely pleased
with our substantial growth in sales and income from a year
ago, and continued strong upward momentum moving forward,"
said Sam Smookler, DMC President and CEO. "Demand for our
Altium™ high-capacity wireless SONET/SDH product line
continued to grow with orders of $40.7 million, up by 67
percent over last quarter and by more than 350 percent from a
year ago. Shipments of the Altium product line also
increased significantly to $24 million, an increase of 30
percent over last quarter and 350 percent over what was
shipped for last year’s first quarter. We believe these
orders and actual shipments clearly support our view that
Altium is the world’s most popular high-capacity broadband
wireless access and fiber compatible product of its kind.
"We have continued to stride forward with the plan we set in
place a few years ago, and are expanding our lead in serving
the rapidly growing broadband fixed wireless access and
mobile wireless markets," continued Smookler. The company’s
shift in revenue to our wireless broadband product lines, as
well as our focused efforts to reduce manufacturing product
cost, has resulted in improved product margins, which were
35.2 percent in the current quarter, compared to 27.5 percent
in the first quarter of the last fiscal year. While
industry-wide component shortages have presented short-term
challenges to certain product lines, we continue to ramp
capacity to meet customer demand with increasing
profitability."
With headquarters in San Jose, Calif., Digital Microwave is
one of the world’s foremost solutions providers for broadband
wireless access – enabling the development of complex
communications networks worldwide. Since its founding in
1984, the Company has achieved international recognition for
quality, innovation and technical superiority in delivering
data, voice and video communication systems, including
comprehensive service and support. Continuing its focus on
the wireless broadband networking market, DMC is
strategically positioned to continue its solutions-based
leadership in wireless high-capacity transmission technology.
Additional information can be found on the Company’s web site
at www.dmcwave.com or www.dmcstratexnetworks.com.
The statements in this press release that relate to demand
for the Company’s broadband wireless products, its
positioning for continued success, and continued 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 10-K filed with the
SEC on June 29, 2000.
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NOTE: Digital Microwave Corporation announced on May 16,
2000, that is changing its name to DMC Stratex Networks,
subject to stockholder approval. The Company currently
intends to legally change its name promptly following the
upcoming annual meeting of stockholders on Aug. 8, 2000.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
June 30,
2000 1999
(unaudited)
Net Sales $86,734 $65,954
Cost of Sales 56,223 47,837
Gross profit 30,511 18,117
Operating Expenses:
Research and development 6,282 5,768
Selling, general & administrative 14,598 11,513
Total operating expenses 20,880 17,281
Operating income 9,631 836
Other income (expense) 1,014 (636)
Income before income taxes 10,645 200
Provision for income taxes 1,597 40
Net Income $9,048 $160
Basic earnings per share $0.12 $0.00
Diluted earnings per share $0.12 $0.00
Basic weighted average shares outstanding
72,867 62,886
Diluted weighted average shares outstanding
77,149 68,060
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
June 30, March 31,
2000 2000
(unaudited)
Assets
Cash and short-terms investments $98,036 $123,942
Accounts receivable, net 117,330 98,520
Inventories 69,993 48,547
Other current assets 12,903 11,201
Total current assets 298,262 282,210
Property & equipment, net 44,818 43,801
Other Assets 10,300 11,430
Total assets $353,380 $337,441
Liabilities and Stockholders’ Equity
Current maturities of capital lease obligations
$85 $167
Accounts payable 45,497 39,582
Other current liabilities 32,061 33,300
Total current liabilities 77,643 73,049
Long-term liabilities 0 0
Total liabilities 77,643 73,049
Stockholders’ equity 275,737 264,392
Total liabilities and stockholders’ equity
$353,380 $337,441
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