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California Amplifier Reports FY 2003 Second Quarter Results

09/19/02

- Revenues Increase 22% From Prior Quarter

- Second Quarter Sales of $27.5 Million and EPS of $0.12

CAMARILLO, Calif., Sept. 19 /PRNewswire-FirstCall/ --
California Amplifier, Inc. (Nasdaq: CAMP) today reported results for its second quarter ended August 31, 2002.

Sales for the second quarter of fiscal 2003 were $27.5 million, compared to $22.5 million for the first quarter of fiscal year 2003 and $24.7 million for the second quarter of the prior year.  Income from continuing operations for the second quarter was $1.8 million, or $0.12 per diluted share, compared to $1.5 million, or $0.10 per diluted share in the previous quarter, and $465,000, or $0.03 per diluted share in the second quarter of last year.

For the six months ended August 31, 2002 revenues were $50.0 million, compared to $45.5 million in the prior year.  Income from continuing operations during the first six months of fiscal year 2003 was $3.3 million, or $0.22 per diluted share, as compared to $556,000, or $0.04 per diluted share, in fiscal year 2002.

Fred Sturm, President and Chief Executive Officer commented, We are pleased to have achieved our eleventh consecutive quarter of operating profitability with revenue and earnings performance exceeding our previous guidance.  These improved results were related primarily to a stronger than originally anticipated demand for certain higher value-added satellite products and also continued tight control of expenses.

North American satellite television program providers continue to make steady gains in new subscriber acquisitions.  We believe our sustained product development efforts to further integrate additional features such as multi- satellite reception and multi-room distribution will provide opportunities for additional revenue growth.  Additionally, our wireless access business unit continues investment in products and technologies to support future deployments of broadband wireless services.

Mr. Sturm also noted, We currently estimate fiscal third quarter revenue in the range of $24 to $28 million and earnings in the range of $0.04-$0.08 per diluted share.  The range of expectations reflects timing issues with regard to the production ramp of next-generation satellite products, competitive pricing pressures on mature product lines and cost increases on certain raw materials.

About California Amplifier, Inc.

California Amplifier designs, manufactures and markets a broad line of integrated microwave solutions used primarily in conjunction with satellite television and terrestrial broadband wireless applications.  The Company's satellite business unit designs and markets reception components for the worldwide Direct Broadcast Satellite television market as well as a full line of consumer and commercial products for video and data reception.  The wireless access business unit designs and markets integrated wireless solutions for video, voice and data applications.  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 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, Partner, Coffin Communications Group, +1-818-789-0100, crocker.coulson@coffincg.com, for California Amplifier, Inc.; or Rick Vitelle, Chief Financial Officer of California Amplifier, Inc., +1-805-987-9000.

CALIFORNIA AMPLIFIER, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share data)

                                Three Months Ended       Six Months Ended
                                     August 31               August 31
                                   2002      2001        2002       2001
    Sales                        $27,526   $24,654     $50,008    $45,456
    Cost of sales                 21,171    18,502      37,809     34,525
    Gross profit                   6,355     6,152      12,199     10,931
    Research and development       1,723     2,059       3,424      3,720
    Selling                          744       592       1,474      1,226
    General and administrative     1,052     2,775       2,102      5,118
    Operating income               2,836       726       5,199        867

Non-operating income

     (expense)                       (79)       11         (80)         1
    Income before taxes            2,757       737       5,119        868

Provision for income taxes      (939)     (272)     (1,835)      (312)

Income from continuing

     operations                    1,818       465       3,284        556

Income from discontinued

     operations, net of tax          ---     1,610(A)      ---      1,590(A)
    Net income                    $1,818    $2,075      $3,284     $2,146

Earnings per share:

Continuing operations

         Basic                      $.12      $.03        $.23       $.04
         Diluted                    $.12      $.03        $.22       $.04

Discontinued operations

         Basic                     $----      $.12       $----       $.12
         Diluted                   $----      $.12       $----       $.11

Total

         Basic                      $.12      $.15        $.23       $.16
         Diluted                    $.12      $.15        $.22       $.15

Shares used in per share

calculations:

         Basic                    14,720    13,723      14,547     13,723
         Diluted                  14,914    14,000      14,835     13,979

SALES BY BUSINESS SEGMENT:

Three Months Ended      Six Months Ended

                                      August 31              August 31
                                   2002       2001       2002       2001
    Satellite Products           $24,640   $18,730     $44,114    $33,015
    Wireless Access Products       2,886     5,924       5,894     12,441
         Total                   $27,526   $24,654     $50,008    $45,456

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

CALIFORNIA AMPLIFIER, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

August 31,    February 28,

                                                    2002            2002

ASSETS

Current assets:

      Cash and cash equivalents                    $23,507        $23,156
      Accounts receivable, net                      11,236          8,219
      Inventories                                    7,877          9,472
      Deferred tax asset                             4,870          3,580
      Prepaid expenses and other current assets      1,076          1,312
        Total current assets                        48,566         45,739

Property and equipment, at cost, net of

     accumulated depreciation and amortization      10,153          7,375
    Goodwill, net of accumulated amortization       20,992          3,287
    Other assets                                       894            287
                                                   $80,605        $56,688

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

      Current portion of long-term debt             $1,962           $917
      Accounts payable                               5,981          5,713
      Accrued liabilities                            4,748          8,850
        Total current liabilities                   12,691         15,480
    Long-term debt, net of current portion          14,100          3,628

Stockholders' equity:

      Paid-in capital                               40,864         27,705
      Retained earnings                             13,960         10,676
      Accumulated other comprehensive loss          (1,010)          (801)
        Total stockholders' equity                  53,814         37,580
                                                   $80,605        $56,688

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SOURCE  California Amplifier, Inc.

    -0-                             09/19/2002

/CONTACT:  Crocker Coulson, Partner, Coffin Communications Group, +1-818-789-0100, crocker.coulson@coffincg.com, for California Amplifier, Inc.; or Rick Vitelle, Chief Financial Officer of California Amplifier, Inc., +1-805-987-9000/

/Web site:  http://www.calamp.com  /

(CAMP)

CO:  California Amplifier, Inc.
ST:  California
IN:  TLS CPR CSE TVN
SU:  ERN

 

LP-MV
-- LATH065 --
9507 09/19/2002 16:20 EDT http://www.prnewswire.com

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