·
Q2 revenues
increase 19 percent from prior quarter
·
Income from
continuing operations of $465,000 or $0.03 per diluted share
CAMARILLO, Calif., September 20, 2001 --- California Amplifier,
Inc. (Nasdaq: CAMP) today reported results for its second quarter and six
months ended September 1, 2001.
Revenues for the
second quarter of fiscal year 2002 were $24.7 million, compared to $20.8
million in the first quarter of fiscal year 2002 and $31.7 million in the
second quarter of the previous year.
Income from continuing operations in the second quarter was $465,000, or
$0.03 per diluted share, as compared to a profit of $91,000, or $0.01 per
diluted share, in the previous quarter and $1,349,000, or $0.09 per diluted
share, in the second quarter of last year.
Total reported net income for the second quarter was $2,075,000, or
$0.15 per diluted share, which includes recognition of a gain of $1,615,000, or
$0.12 per diluted share, related to the sale of the Company’s investment in
Micro Pulse, Inc.
For the six months
ended September 1, 2001 revenues were $45.5 million, as compared to $61.6
million in the prior year. Income from
continuing operations during the first six months of fiscal year 2002 was
$556,000, or $0.04 per diluted share, as compared to $2,799,000, or $0.20 per
diluted share, in fiscal year 2001.
Fred Sturm,
President and Chief Executive Officer commented, “We are pleased that in the
current economic and market environment California Amplifier was able to
achieve sequential revenue growth of 19% and continued profitability, driven by
demand for our Satellite products.
Wireless Access revenues experienced a 9% sequential decline during the
quarter due to the telecom industry slowdown and a less aggressive roll out
pattern by carriers in anticipation of second generation fixed broadband
wireless technology. Additionally, as a
result of the ongoing financial uncertainty with regard to Look Communications
(CDNX: LKC) we have fully reserved its outstanding accounts receivable of $1.2
million, which reduced our second quarter operating results by $0.05 per
diluted share.
Mr. Sturm added, “As
we moved into the third quarter our backlog indicated another 15%-20% sequential
increase in revenues due to continued demand for our Satellite products. Unfortunately, the potential impact of
recent national tragedies on consumer spending and the interrupted availability
of raw materials due to shipping interruptions have reduced near-term
visibility. Therefore, we now estimate third quarter revenues in the range of
$25-$30 million and earnings in the range of $0.06-$0.09 per diluted share,
depending on the magnitude of the aforementioned factors. Visibility beyond the fiscal third quarter
remains limited at this point.”
“Today, according to
International Data Corporation, less than 13% of U.S. households with
web-enabled PCs enjoy broadband access. California Amplifier, together with our
technology partners, continues to work to develop a cost-effective platform to
bridge the critical ‘last mile’ of the broadband network. In the second
quarter, investment in R&D increased 29% to $2.1 million as compared to the
prior year. Our proven manufacturing
capabilities and technology leadership have enabled the Company to remain a
market share leader in both major business segments in which we participate. We
remain focused on executing our strategy of working closely with our customers
to develop innovative customer premise fixed-point wireless solutions.”
About California Amplifier, Inc.
California Amplifier designs, markets and manufactures
a broad line of integrated microwave fixed point solutions used primarily in
conjunction with satellite and terrestrial broadband applications. The
Company’s wireless access business unit designs and markets integrated
reception and two-way transmission fixed wireless solutions for video, voice,
data, telephony and networking applications. The satellite business unit
designs and markets reception components for the worldwide DBS television
market as well as a full line of consumer and commercial products for video and
data reception. California Amplifier is an ISO 9001 certified Company.
For additional information, visit California Amplifier’s web site at www.calamp.com.
Statements in this release
about the Company’s future financial performance, customer relationships,
initiatives to develop innovative fixed-point wireless solutions, and the
market potential of new products are forward-looking statements and are subject
to risks and uncertainties that could cause actual results to differ materially
from expectations. Words such as “may,” “will,” “expects,” “intends,” “plans,”
“believes,” “seeks,” “could,” “estimates”
and variations of these words and similar expressions are intended to identify
forward-looking statements. Factors
that could impact California Amplifier’s future results include changes in
product demand and market growth rates, the effect of competition, pricing
pressures, supplier constraints, manufacturing yields, market acceptance of new
products and the viability and market acceptance of new technologies. Although the Company believes the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that its expectations will be
attained. The Company undertakes no
obligation to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. More information about
California Amplifier’s risks is available in the Company’s annual report on
Form 10-K and other filings made from time to time with the Securities and
Exchange Commission. Special attention
is directed to the portions of those documents entitled “Risk Factors.”
For more information, contact:
Crocker Coulson Richard K. Vitelle
Partner Chief
Financial Officer
Coffin Communications Group California Amplifier, Inc.
(818) 789-0100 (805)
987-9000
crocker.coulson@coffincg.com
[TABLES FOLLOW]
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
Sept.
1, Aug. 26, Sept. 1, Aug. 26,
2001 2000 2001 2000
Sales $24,654 $31,738 $45,456 $61,604
Cost of
sales 18,502 25,638 34,525 49,658
Gross
profit 6,152 6,100 10,931 11,946
Research
and development 2,059 1,601 3,720 3,055
Selling 592 988 1,226 1,824
General
and administrative 2,775 1,356 5,118 2,578
Operating
income 726 2,155 867 4,489
Interest
and other, net 11 (32) 1 (92)
Income
before taxes 737 2,123 868 4,397
Provision for income taxes (272) (774) (312) (1,598)
Income
from continuing operations 465 1,349 556 2,799
Income from discontinued operations,
net of tax 1,610A 70 1,590A 160
Net income $ 2,075 $ 1,419 $2,146 $2,959
Net income per share:
Continuing
operations Basic $ .03 $ .10 $ .04 $ .21
Diluted $ .03 $ .09 $ .04 $ .20
Discontinued
operations Basic $ .12 $ .01 $ .12 $ .01
Diluted $ .12 $ .01 $ .11 $ .01
Total Basic $ .15 $ .11 $ .16 $ .22
Diluted $ .15 $ .10 $ .15 $ .21
Shares used in per share
calculations: Basic 13,601 13,382 13,601 13,168
Diluted 14,000 14,354 13,979 14,250
SALES BY
PRODUCT LINE:
Three Months Ended Six Months Ended
Sept.
1, Aug. 26, Sept. 1, Aug. 26,
2001 2000 2001 2000
Satellite
Products $18,730 $24,363 $33,015 $48,818
Wireless
Access Products 5,924 7,375 12,441 12,786
Total $24,654 $31,738 $45,456 $61,604
A Includes a
gain of $1,615 on the sale of Micro Pulse, Inc.
CALIFORNIA
AMPLIFIER, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
Sept.
1, Mar. 3,
2001 2001
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 18,021 $ 9,778
Accounts receivable, net 11,712 11,382
Inventories 9,407 9,676
Deferred tax asset 2,134 2,222
Prepaid expenses and other current assets 667 1163
Total current assets 41,941 34,221
Property
and equipment, at cost, net of
accumulated depreciation and amortization 9,018 9,885
Goodwill,
net of amortization 3,411 3,557
Other
assets 499 458
LIABILITIES
AND STOCKHOLDERS' EQUITY
Current
liabilities:
Current portion of long-term debt $ 940 $ 644
Accounts payable 9,222 5,103
Accrued payroll and benefits 1,335 1,467
Accrued liabilities 6,538 6,783
Total current liabilities 18,035 13,997
Long-term
debt, net of current portion 4,118 4,500
Stockholders'
equity:
Common stock 136 136
Additional paid-in capital 25,050 23,975
Retained earnings 8,358 6,212
Accumulated other comprehensive income (828) (699)
Total stockholders' equity 32,716 29,624
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