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California Amplifier Reports FY 2002 Third Quarter Results

12/20/01

·   Income from continuing operations of $1,352,000 or $0.10 per share

 

CAMARILLO, Calif., December 20, 2001 --- California Amplifier, Inc. (Nasdaq: CAMP) today reported results for its third quarter and nine months ended November 30, 2001.

 

Revenues for the third quarter of fiscal year 2002 were $32.8 million, compared to $24.7 million in the immediately preceding quarter and $30.9 million in last year's third quarter.  Income from continuing operations was $1,352,000, or $0.10 per diluted share, in the latest quarter, compared to $465,000, or $0.03 per diluted share, in the immediately preceding quarter and $1,816,000, or $0.13 per diluted share, in the third quarter of last year.  Third quarter income from continuing operations includes a one-time, pre-tax charge of $925,000, or $0.04 per diluted share, related to the settlement of various litigation matters which was announced separately.

 

For the nine months ended November 30, 2001 revenues were $78.2 million, compared to $92.5 million in the prior year.  Income from continuing operations during the first nine months of fiscal year 2002 was $1,908,000, or $0.14 per diluted share, compared to $4,615,000, or $0.33 per diluted share, in fiscal year 2001.

 

Fred Sturm, President and Chief Executive Officer commented, “The sequential improvement in revenues and profitability in the quarter was primarily related to seasonal strength in our satellite products segment.  Wireless access product sales largely reflected shipments to Sprint to support their broadband wireless access program.  However, Sprint recently placed this program on hold.  Following Sprint’s announcement, the Company implemented cost reduction measures in order to better align its operations with anticipated lower wireless access revenue in the near term.”

 

Mr. Sturm added, “Looking to fiscal 2003, we remain optimistic about the potential of MMDS spectrum to provide broadband services to underserved markets and expand consumer choice. However, it is clear that sustainable market penetration for wireless broadband services in North America will need to be supported by a viable carrier business model.  We believe the criteria for success in this marketplace include true non-line-of-sight (NLOS) capabilities, standards-based modulation schemes and cost-effective, consumer installable customer premise equipment (CPE).

 

“California Amplifier’s decade of experience in the MMDS industry, coupled with our RF manufacturing and design expertise, provides us with significant advantages in delivering on these requirements. We are working intensively with leading service providers and technology companies, including our recently announced agreement with Navini Networks, to develop innovative next generation CPE that will support reliable, high speed access and attractive service provider return on investment.”

 

Commenting on the proposed acquisition of DirecTV by EchoStar Communications Corp., Mr. Sturm said that there had been no material impact on California Amplifier’s satellite products sales to date.  “We enjoy long-standing relationships with both companies, and look forward to continued development of solutions that increase the functionality and reduce the total installation cost of satellite broadcast services.”

 

“Due to the anticipated decline in wireless access revenues and a seasonally slow period for satellite products, we currently estimate fiscal fourth quarter revenue in the range of $18 to $22 million and earnings in the range of $0.01-$0.04 per diluted share.” 

 

Mr. Sturm also noted, “California Amplifier continued to generate positive cash flow during the quarter and its financial condition remains strong.   As of the end of the quarter, the Company had nearly $20 million in cash on the balance sheet, an increase of $10 million from the beginning of the fiscal year, and a low debt-to-equity ratio of 0.14:1.”

 

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.”

 

For more information, contact:

Crocker Coulson                                               Rick 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                      Nine months ended              

                                                                                 November 30,                              November 30,          

                                                                           2001                 2000                   2001                2000            

 

Sales                                                                  $32,756             $30,902             $78,212             $92,506          

Cost of sales                                                         25,210              24,223              59,735              73,881          

Gross profit                                                             7,546                6,679              18,477              18,625          

 

Research and development                                       2,276                1,435                5,996                4,490          

Selling                                                                       622                   692                1,848                2,516          

General and administrative                                       1,739                1,672                6,857                4,250          

Operating income                                                    2,909                2,880                3,776                7,369          

 

Litigation settlement                                                  (925)                                       (925)                    

Interest and other, net                                                   (4)                   (35)                    (3)                 (127)         

 

Income before taxes                                                1,980                2,845                2,848                7,242

Provision for income taxes                                         (628)              (1,029)                 (940)              (2,627)         

 

Income from continuing operations                            1,352                1,816                1,908                4,615

Income from discontinued operations,

   net of tax                                                                                        34                1,590A                  194                        

 

Net income                                                          $  1,352            $  1,850             $ 3,498             $ 4,809                       

 

Net income per share:

    Continuing operations                Basic             $       .10            $      .14            $      .14            $      .35          

                                                   Diluted           $       .10            $      .13            $      .14            $      .33          

 

    Discontinued operations            Basic             $                      $                     $      .12            $      .01          

                                                   Diluted           $                      $                     $      .11            $      .01          

 

    Total                                        Basic             $       .10            $      .14            $      .26            $      .36          

                                                   Diluted           $       .10            $      .13            $      .25            $      .34          

 

Shares used in per share

  calculations:                               Basic                 13,602              13,549              13,601            13,279 

                                                   Diluted               13,906              14,298              13,955            14,237 

 

SALES BY PRODUCT LINE:

                                                                         Three months ended                      Nine months ended              

                                                                                 November 30,                              November 30,  _    

                                                                           2001                 2000                   2001                2000             

 

Satellite Products                                                $26,120             $20,739             $59,135             $69,557          

Wireless Access Products                                       6,636              10,163              19,077              22,949          

 

Total                                                                   $32,756             $30,902            $78,212 $92,506

 

A Includes a gain of $1,615 on the sale of Micro Pulse, Inc.

       


CALIFORNIA AMPLIFIER, INC.

 

CONSOLIDATED BALANCE SHEETS

(in thousands)

                                                           

                                                                                                            November 30,              February 28,

                                                                                                                  2001                             2001       

                                                                                                             (unaudited)                    (audited)    

 

ASSETS

 

Current assets:

   Cash and cash equivalents                                                                     $    19,812                     $     9,778

   Accounts receivable, net                                                                              15,581                         11,382

   Inventories                                                                                                  10,547                           9,676

   Deferred tax asset                                                                                         2,252                          2,222

   Prepaid expenses and other current assets                                                        360                           1,163

     Total current assets                                                                                   48,552                         34,221

 

Property and equipment, at cost, net of

   accumulated depreciation and amortization                                                     8,419                           9,885

Goodwill, net of amortization                                                                             3,354                           3,557

Other assets                                                                                                      440                              458   

                                                                                                               $    60,765                     $   48,121

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Current liabilities:

   Current portion of long-term debt                                                              $        908                     $       644

   Accounts payable                                                                                       11,829                           5,103

   Accrued payroll and benefits                                                                          2,149                           1,467

   Accrued liabilities                                                                                          7,106                           6,783   

     Total current liabilities                                                                                21,992                         13,997

 

Long-term debt, net of current portion                                                                 3,889                           4,500

 

Stockholders' equity:

   Common stock                                                                                                136                              136

   Additional paid-in capital                                                                              25,804                         23,975

   Retained earnings                                                                                         9,710                           6,212   

   Accumulated other comprehensive loss                                                           (766)                            (699)   

 

     Total stockholders' equity                                                                           34,884                         29,624   

                                                                                                               $    60,765                     $   48,121

 

 

 

 

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