· 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
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
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