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California Amplifier Reports FY 2002 Second Quarter Results

09/20/01

·        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   

                                                                                                               $    54,869                     $   48,121

 

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   

                                                                                                               $    54,869                     $   48,121

 

 

 

 

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