Poet --
[OT]
I'm sure the negative EPS is misleading because of the reorganization. If you look at the figures for on-going operations, I believe they're actually profitable.
I'll post a few notes here since WJCI doesn't have a thread yet. If there's enough interest we could request one be started. (I'm still undecided if it's worth it.)
Product announcements from their website:
wjcommunications.com
wjcommunications.com
Product descriptions:
wjcommunications.com
A few examples:
OC-192 Products
Our fiber optic backbone products consist of highly stable oscillators. These products are used for OC-48 and OC-192 systems. Products are in development for next generation OC-768 systems.
CONVERTERS, RECEIVERS, TRANSCEIVERS
We produce a variety of frequency converters and transceivers for wireless network infrastructure. Frequency converters are used in virtually every communications system to translate signals from one frequency to another. The resulting frequency can either be higher than the original frequency, which is called up-conversion, or lower, which is called down-conversion. Up- and down-converters are required by systems because signal processors which are those parts of the system that encode and decode the signals, cannot operate at the high frequencies used to carry information over the air or through the network. We develop integrated assemblies for specific wireless requirements. Applications include a wide variety of base station infrastructure requirements. Several frequency converters for the cellular and PCS bands have been developed. WJ also utilizes its patented embedded circuit technology GaAs FET's, and MMIC's to offer low cost transceivers for high volume requirements. . . .
INDOOR REPEATERS, HIGH POWER REPEATERS
Our repeaters, for both outdoor and indoor applications, cover all three major wireless protocols CDMA, TDMA, and GSM, for PCS networks, and the major wireless protocols CDMA, TDMA, and AMPS for cellular networks. Repeaters are used primarily to extend the range of a particular cell site to cover areas where the signal does not currently reach without the need to either boost the power of a cell site or add an additional cell site. Typical applications include long stretches of highways and roads or in tunnels where coverage is difficult to achieve. Repeaters are most frequently used to supplement existing wireless networks at a lower cost than adding additional base stations by improving coverage, reducing dropped call rates and improving voice quality. Repeaters are also used to supplement existing networks by extending cell size in rural applications. Over-the-air in-building repeaters provide quick and easy coverage (up to 1 million square feet!) to shopping Malls, airports, multistory office buildings, and other indoor locations where signals are obstructed.
I honestly don't know if their products are unique in any way. In the following notes from the prospectus, you'll see a chart comparing their different product lines and fiber optics is definitely a growing segment.
>>>>>
Since our recapitalization merger, we have been focused exclusively on providing product solutions that enable and facilitate the development of fiber optic, broadband cable and wireless network infrastructure. In April 2000, we changed our name from Watkins-Johnson Company to WJ Communications, Inc. to highlight our focus on the commercial broadband communications markets. . . .
We design, develop and manufacture innovative, high quality broadband communications products that enable voice, data and image transport over fiber optic, broadband cable and wireless communications networks around the world. Our products are comprised of advanced, highly functional components and integrated assemblies which address the RF challenges of both current and next generation broadband communications networks. These products are used in the network infrastructure supporting and facilitating mobile communications, broadband high-speed data transmission and enhanced voice services. Our core expertise in gallium arsenide semiconductor and thin-film technology, coupled with our exceptional RF design and manufacturing capabilities, have enabled us to obtain a competitive advantage in these broadband communications markets. . . .
For the six months ended June 30, 2000, approximately 69% of our sales were to Nortel and Lucent, which were our only customers that accounted for more than 10% of our sales for that period. We have diversified our customer base over the last few years and we have expanded our product offering from wireless mobile infrastructure products to include fiber optic, broadband cable and fixed wireless products and intend to further diversify our customer base and product offering in the future.
YEAR ENDED DECEMBER 31, *************SIX MONTHS ENDED
1997 1998 1999************************** JUNE 25, 1999 JUNE 30, 2000
Sales:
Semiconductor...$ 3,651 $ 9,763 $15,625 *****$ 7,161 $10,074
Fiber optic...676 7,251 15,228 *****6,971 18,456
Wireless...26,847 46,554 51,551 *****33,084 16,148 -
Total sales...$31,174 $63,568 $82,404 *******$47,216 $44,678 ======= ======= ======= ======= =======
SALES. For the six-quarter period presented, sales were at relatively high levels during the first and second quarter of 1999, due primarily to large shipments of our fixed wireless products. These shipments and our customer requirements for them were completed in the second quarter 1999. Total sales for fiber optic and semiconductor products have grown on a quarter-by-quarter basis from the first quarter 1999, and for wireless products have grown since the third quarter 1999, with the exception of the first quarter 2000. In the first quarter 2000, our sales were negatively impacted as our contract with Lucent Technologies converted to a consignment arrangement under which title will not pass, and we will therefore not recognize sales, until Lucent Technologies utilizes our products in its production processes. Sales were at the highest level during the second quarter 2000.
>>>
I'll watch for analyst reports once the 30-day quiet period is over.
Pat |
