BENSENVILLE, Ill., May 1 /PRNewswire/ -- M~Wave, Inc. (Nasdaq: MWAV), a
value-added service provider of high performance circuit boards used in a
variety of telecommunication applications for wireless and internet
applications, announced a net income of $2,076,000 or $0.45 per share, for the
first quarter ended March 31, 2001, compared with a net income of $168,000 or
$0.04 per share a year ago. Net sales for the first quarter of 2001 were
$22,526,000, up 319 percent from the first quarter of 2000.
Cash levels increased from $1,231,000 at December 31, 2000 to $3,584,000
at March 31, 2001. Accounts receivable and inventories were down $3,979,000
from year-end, which was partially offset by a decrease in accounts payable of
$976,000. Capital expenditures mainly relating to the new facility in West
Chicago were $1,558,000 in the first quarter of 2001. The company also reduced
debt by $2,885,000 in the first quarter.
Joseph A. Turek, chairman and chief executive officer, said: "Despite the
more difficult market conditions, we have been able to achieve solid growth
and good profitability. Although the current economic downturn will adversely
affect our revenues during the second quarter of 2001, with revenues ranging
from $8 million to $12 million, based on discussions with our customers we are
optimistic that we can still achieve our goal of increasing our annual
revenues from $57 million in 2000 to between $60 million and $70 million in
2001."
"We continue to see many opportunities in the market even with the current
economic uncertainty, and we will use our strengths to serve our customers in
the best possible way. For example, we have broadened our product offering to
our current customers while decreasing lead times, decreasing costs and
increasing capacity. At the same time we are moving into other markets
outside of telecommunications. This expands the market in which we compete to
a $10 billion market for printed circuit boards."
"We believe our marketing strategy will achieve $100 million in annual
revenues within the next two to three years. We expect to be completely
operational in our new West Chicago facility in the fourth quarter of 2001."
Join M~Wave on its quarterly Conference call on Wednesday, May 2, 2001 at
10:00 am CST at 703-871-3085 or 877-747-3510 at least five minutes before
start time or on www.vcall.com .
About M-Wave:
Established in 1988 and headquartered in the Chicago suburb of
Bensenville, Ill., M~Wave is a value-added service provider of high
performance circuit boards. 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; economic
conditions; 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 INCOME
(Unaudited)
Three months ended March 31,
2000 2001
Net sales $5,372,185 $22,526,120
Cost of goods sold 4,598,236 17,589,054
Gross profit 773,949 4,937,066
Operating expenses:
General and administrative 335,324 885,247
Selling and marketing 181,359 471,029
Total operating expenses 516,683 1,356,276
Operating income 257,266 3,580,790
Other income (expense):
Interest income 19,839 19,335
Interest expense (51,068) (217,958)
Rental income 51,000 51,000
Total other income (expense) 19,771 (147,623)
Income before income taxes 277,037 3,433,167
Provision for income taxes 109,518 1,357,192
Net income $167,519 $2,075,975
Weighted average shares outstanding 4,545,988 4,572,184
Basic earnings per share $0.04 $0.45
Diluted shares outstanding 4,595,988 4,651,423
Diluted earnings per share $0.04 $0.45
See notes to consolidated financial statements.
M~WAVE, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31 March 31
2000 2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,230,999 $3,583,763
Accounts receivable, net of
allowance for doubtful accounts,
2000- $100,000: 2001- $100,000 12,378,766 10,430,487
Inventories 8,859,795 6,828,900
Deferred income taxes 1,118,242 960,712
Prepaid expenses and other 47,688 112,392
Total current assets 23,635,490 21,916,254
PROPERTY, PLANT AND EQUIPMENT:
Land, buildings and improvements 6,488,057 7,095,538
Machinery and equipment 8,731,449 9,681,942
Total property, plant and
equipment 15,219,506 16,777,480
Less accumulated depreciation (6,914,345) (7,312,835)
Property, plant and
equipment-net 8,305,161 9,464,645
NOTE RECEIVABLE 195,391 191,558
OTHER ASSETS 54,915 54,730
TOTAL $32,190,957 $31,627,187
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $6,516,541 $5,540,434
Accrued expenses 1,603,474 1,684,884
Accrued income taxes 146,287 1,285,949
Current credit line debt 5,500,000 2,705,682
Current portion of long-term debt 3,229,580 3,153,880
Total current liabilities 16,995,882 14,370,829
DEFERRED INCOME TAXES 522,593 522,593
LONG-TERM DEBT166,506 151,814
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
6,179,112 shares issued and
4,572,184 shares outstanding
at December 31, 2000, 6,179,112
shares issued and 4,572,184
shares outstanding at March 31,
2001 30,895 30,895
Additional paid-in capital 8,439,072 8,439,072
Retained earnings 7,715,283 9,791,258
Treasury stock: 1,606,928
shares, at cost (1,679,274) (1,679,274)
Total stockholders' equity 14,505,976 16,581,951
TOTAL $32,190,957 $31,627,187
See notes to consolidated financial statements.
M~WAVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended March 31,
2000 2001
OPERATING ACTIVITIES:
Net income $167,519 $2,075,975
Adjustments to reconcile net loss
to net cash flows from operating
activities:
Depreciation and amortization $256,500 $398,490
Deferred income taxes $101,400 $0
Changes in assets and
liabilities:
Accounts receivable-trade ($10,228) $1,948,279
Inventories ($1,240,323) $2,030,895
Income taxes$8,116 $1,297,192
Prepaid expenses and other
assets ($5,221) ($60,686)
Accounts payable $941,353 ($976,107)
Accrued expenses $52,206 $81,410
Net cash flows provided by
operating activities $271,322 $6,795,448
INVESTING ACTIVITIES:
Purchase of property, plant and
equipment ($31,563) ($1,557,974)
Net cash flows used in
investing activities ($31,563) ($1,557,974)
FINANCING ACTIVITIES:
Common stock issued upon exercise
of stock options $47,125 $0
Payments on short and long term
debt ($90,390) ($2,884,710)
Net cash flows used in
financing activities ($43,265) ($2,884,710)
NET INCREASE IN CASH AND CASH
EQUIVALENTS $196,494 $2,352,764
CASH AND CASH EQUIVALENTS - Beginning
of period $2,586,885 $1,230,999
CASH AND CASH EQUIVALENTS - End of
period $2,783,379 $3,583,763
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for
interest ($51,068) ($217,958)
Income tax payments ($60,000) $0
to consolidated financial statements.
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SOURCE M-Wave, Inc.
-0- 05/01/2001
/CONTACT: Paul Schmitt, Chief Financial Officer of M~Wave, Inc.,
630-860-3560, or General, Tad Gage of The Financial Relations Board BSMG
Worldwide, 312-640-6745/
/Web site: mwav.com /
(MWAV)
CO: M-Wave, Inc.
ST: Illinois
IN: CPR
SU: ERN |
