One more interesting tid-bit.
<< Thursday April 29, 4:16 pm Eastern Time
Company Press Release
Adaptive Broadband Corporation, Formerly Known
as California Microwave, Reports Results for Third
Quarter FY'99
Name Change Effective Today; Wireless Broadband Market Heating
Up
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 29, 1999-- Adaptive Broadband Corporation (Nasdaq/NMS:ADAP -
news) today reported results for its fiscal 1999 third quarter ended March 31, 1999. Excluding a $2.1 million net-of-tax charge
for restructuring and other items, the company reported a net loss from continuing operations of $5.4 million, or $.36 per share.
Including the $2.1 million charge, the net loss totaled $7.5 million, or $.51 per share, compared to net income from continuing
operations of $1.7 million, or $.10 per share for the third quarter of fiscal 1998.
The loss resulted primarily from a dip in third-quarter revenue, to $38.6 million, caused by weakness in the company's
international satellite communications business area. The company reported revenue of $44.3 million for its third quarter last
year. Additionally, the operating loss includes $1.9 million, after-tax, in excess manufacturing costs related directly to factory
floor reductions, inventory reductions and manufacturing process changes primarily at the company's Tempe, AZ, satellite
communications operations.
Future Results to Benefit from Factory Optimization Activities
As indicated in its April 26, 1999, announcement related to the sale of its Government business, during the third quarter,
Adaptive Broadband continued the consolidation of all company manufacturing operations under new leadership and installed a
new management team in its Tempe operation. The new team has begun outsourcing the manufacturing of certain new products,
has reduced the Tempe factory floor space and substantially reduced the manufacturing operations headcount. By transitioning
to build-to-order, and through improvements in bills of materials, inventory has also been reduced. The actions resulted in a
total of $6.3 million, pre-tax, in restructuring, other items and excess manufacturing costs in the quarter. An additional $1
million, pre-tax, in excess manufacturing costs will be recognized in the company's fourth quarter as the transition is completed
in the April timeframe.
Order Flow Improving; Wireless Broadband Market Heating Up
New orders booked in the third quarter improved sequentially to $41.7 million, compared to $38.5 reported last quarter, for a
book-to-bill ratio of 108% this quarter. ''We are encouraged by the improving order trend in our core businesses. Momentum
is also building in the wireless broadband market, as evidenced by customer activity and new market research reports. Just in
the month of April, we've seen huge industry movements as telecommunications carriers and high-tech leaders have either
acquired or partnered with wireless broadband companies. Of particular interest to us is the rush by some carriers to acquire
frequency spectrum in the MMDS frequency band, which is the next extension of our AB-Access(TM) point-to-multipoint
wireless broadband access product family. This industry activity validates the market, and we're committed to developing
products that serve our customers' wireless broadband needs,'' commented Fred Lawrence, chairman and chief executive
officer of Adaptive Broadband Corporation.
Statements made in this press release that are not historical facts, including any statements about expectations for fiscal year
1999 and beyond, are forward-looking statements, involving certain risks and uncertainties. Factors that could cause the
company's actual results to differ materially from management's projections, estimates and expectations include, but are not
limited to, delays in the receipt of orders or in the shipment of products, the company's success in implementing its strategic
plan, and other factors referred to in the company's Securities and Exchange Commission filings.
Adaptive Broadband (http://www.adaptivebroadband.com) is a leading supplier of terrestrial wireless and satellite-based
systems to support ultra-high speed Internet access, broadcast digital TV transport and worldwide Internet backbones. The
company also provides industry-leading solutions for satellite-based data communications and terrestrial wireless telemetry
networks.
-0-
ADAPTIVE BROADBAND CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
Revenue $ 38,553 $ 44,340 $ 116,458 $ 129,553
Costs of revenue 27,442 27,037 77,477 77,845
------- ------- ------- -------
Gross margin 11,111 17,303 38,981 51,708
Expenses:
Research & development 6,784 4,459 18,179 13,203
Sales, marketing &
administration 10,953 9,055 32,524 29,113
Amortization of intangible
assets 540 344 1,408 1,032
Purchased in-process research
& development -- -- 11,775 --
Restructuring and other
charges 3,325 -- 3,325 --
------- ------- ------- -------
Total expenses 21,602 13,858 67,211 43,348
------- ------- ------- -------
Operating income (loss) (10,491) 3,445 (28,230) 8,360
Interest expense, net (1,245) (880) (3,224) (2,886)
------- ------- ------- -------
Income (loss) from
continuing operations
before income taxes (11,736) 2,565 (31,454) 5,474
Provision for (benefit from)
income taxes (4,226) 912 (8,494) 1,960
------- ------- ------- -------
Income (loss) from
continuing operations (7,510) 1,653 (22,960) 3,514
Discontinued operations:
Income from discontinued
operations, net
of income taxes -- 1,452 1,963 3,775
Gain (loss) on disposal,
net of income taxes -- (12,500) -- (12,500)
------- ------- ------- -------
$ -- $ (11,048) $ 1,963 $ (8,725)
------- ------- ------- -------
Net income (loss) $ (7,510) $ (9,395) $ (20,997) $ (5,211)
======= ======= ======= =======
Basic earnings (loss)
per share:
Income (loss) from
continuing operations $ (0.51) $ 0.10 $ (1.54) $ 0.21
Income (loss) from
discontinued operations -- (0.67) 0.13 $ (0.53)
------- ------- ------- -------
Net income (loss) $ (0.51) $ (0.57) $ (1.40) $ (0.32)
======= ======= ======= =======
Weighted average shares 14,779 16,505 14,953 16,509
Diluted earnings (loss)
per share:
Income (loss) from
continuing operations $ (0.51) $ 0.10 $ (1.54) $ 0.21
Income (loss) from
discontinued operations -- (0.66) 0.13 (0.52)
------- ------- ------- -------
Net income (loss) $ (0.51) $ 0.56 $ (1.40) $ (0.31)
======= ======= ======= =======
Weighted average shares
and dilutive equivalents 14,779 16,780 14,953 16,753
======= ======= ======= =======
ADAPTIVE BROADBAND CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, June 30,
1999 1998
Assets:
Cash and cash equivalents $ 4,638 $ 24,630
Receivables 35,040 35,918
Inventories 24,258 25,710
Deferred income taxes 39,744 32,162
Net assets of discontinued businesses 17,400 18,294
Property, plant and equipment (net) 20,345 19,065
Intangible assets 32,607 27,887
Other assets 10,696 6,846
------- -------
$184,728 $190,512
======== ========
Liabilities and Shareholders' Equity:
Accounts payable and accruals $ 43,808 $ 45,359
Borrowings 85,736 60,600
Shareholders' equity 55,184 84,553
------- -------
$184,728 $190,512
======== ========
ADAPTIVE BROADBAND CORPORATION
SEGMENT INFORMATION
(Dollars in millions)
Fiscal 1999 Fiscal 1998
Q1 Q2 Q3 9M YTD Q3 9M YTD
---- ---- ---- ------ ---- ------
BOOKINGS
Satellite(1) 18.0 20.7 20.8 59.5 23.0 70.5
Terrestrial 19.1 17.8 20.9 57.8 20.7 63.6
---- ---- ---- ---- ---- ----
Total 37.1 38.5 41.7 117.3 43.7 134.1
BOOKINGS MIX
International 43% 43% 35% 40% 47% 48%
Domestic 57% 57% 65% 60% 53% 52%
---- ---- ---- ---- ---- ----
Total 100% 100% 100% 100% 100% 100%
BOOK-TO-BILL
Satellite 111% 90% 105% 101% 100% 104%
Terrestrial 103% 89% 112% 101% 97% 102%
---- --- ---- ---- --- ----
Total 107% 89% 108% 101% 99% 103%
BACKLOG
Satellite(1) 15.2 12.8 11.1 13.7
Terrestrial 13.2 10.9 13.1 13.2
---- ---- ---- ----
Total 28.4 23.7 24.2 26.9
REVENUE
Satellite 16.2 23.1 19.9 59.2 23.0 67.5
Terrestrial 18.5 20.1 18.7 57.3 21.3 62.1
---- ---- ---- ---- ---- ----
Total 34.7 43.2 38.6 116.5 44.3 129.6
REVENUE MIX
International 45% 44% 39% 43% 49% 50%
Domestic 55% 56% 61% 57% 51% 50%
---- ---- ---- ---- ---- ----
Total 100% 100% 100% 100% 100% 100%
GROSS MARGIN PERCENTAGE
Total 34% 38% 29% 33% 39% 40%
(1) Satellite includes gross bookings for Q3 FY 99 before debookings
of $2.6 million relating to canceled orders from FY 98 and FY 97.
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