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California Amplifier Reports FY 2003 Fourth Quarter and Year End Results

04/22/03

CAMARILLO, Calif., April 22 /PRNewswire-FirstCall/ -- California Amplifier, Inc. (Nasdaq: CAMP) today reported results for its fourth quarter and fiscal year ended February 28, 2003.

Sales for the fourth quarter of fiscal 2003 were $26.1 million, compared to $22.5 million for the fourth quarter of the prior year. Income from continuing operations for the fourth quarter was $971,000, or $0.06 per diluted share, compared to $966,000, or $0.07 per diluted share for the fourth quarter of fiscal year 2002.

Sales for fiscal year 2003 were $100.0 million, compared to $100.7 million for fiscal year 2002. Income from continuing operations for fiscal year 2003 was $5.2 million, or $0.35 per diluted share, compared to $2.9 million, or $0.21 per diluted share for fiscal year 2002.

Fred Sturm, President and Chief Executive Officer commented, "In light of a continued weak economic environment, we are pleased with our overall financial performance for both fiscal year 2003 and the most recent quarter. Our primary markets are extremely competitive and our employees responded well to the ongoing challenge of maintaining our competitive position during the year."

Mr. Sturm added, "We continue our pursuit of new market opportunities that leverage our core RF design and manufacturing expertise. The Company is currently evaluating the best means to effectively bring to market RASTER(TM), a recently announced smart antenna technology which has the potential to significantly improve the performance of 802.11 networks. In addition, the Company believes that its continued development of broadband wireless products for licensed band applications will assist telecom service providers in reaching a suitable solution for broad scale deployment. We are encouraged that our portable customer premise equipment recently achieved FCC-type certification and is currently undergoing product interoperability testing with our technology partner, Navini Networks. California Amplifier has received a seed order for this product from a customer in South Asia."

"Results in the first quarter of fiscal 2004 are expected to be impacted by a recent reduction in demand for certain advanced satellite reception products as well as slower than expected industry subscriber growth," stated Mr. Sturm. "In addition, intense price competition has placed significant pressure on our overall gross margins. Based on our current market outlook we estimate fiscal 2004 first quarter revenue in the range of $17 to $20 million and a loss in the range of $0.03 to $0.06 per diluted share. We are currently reviewing our operations to more closely align our cost structure with expected near-term revenue. We remain optimistic that the Company's satellite markets will improve in the quarters ahead."

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 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," "optimistic," "potential," "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 further information please 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        Year ended
                                    February 28,          February 28,
                                  2003       2002       2003       2002

    Sales                        $26,071   $22,503   $100,044    $100,715
    Cost of sales                 22,115    18,113     79,511      78,342
    Gross profit                   3,956     4,390     20,533      22,373

    Research and development       1,167     1,552      5,982       7,337
    Selling                          617       146      2,560       3,456
    General and administrative       777     1,209      3,781       6,321
    Operating income               1,395     1,483      8,210       5,259

    Non-operating expenses           (56)     (150)      (215)     (1,078)

    Income before taxes            1,339     1,333      7,995       4,181
    Provision for income taxes      (368)     (367)    (2,835)     (1,307)

    Income from continuing
     operations                      971       966      5,160       2,874
    Income from discontinued
     operations, net of tax           --        --         --       1,590(A)

    Net income                      $971      $966     $5,160      $4,464

    Net income per share:
      Continuing operations
         Basic                      $.07      $.07       $.35        $.21
         Diluted                    $.06      $.07       $.35        $.21
      Discontinued operations
         Basic                       $--       $--        $--        $.12
         Diluted                     $--       $--        $--        $.11
      Total
         Basic                      $.07      $.07       $.35        $.33
         Diluted                    $.06      $.07       $.35        $.32

    Shares used in per share
     calculations:
         Basic                    14,740    13,738     14,639      13,727
         Diluted                  14,960    14,054     14,870      13,979

    SALES BY PRODUCT LINE:

                                Three months ended         Year ended
                                    February 28,          February 28,
                                   2003     2002        2003        2002

    Satellite Products           $23,880   $19,764    $88,437     $78,899
    Wireless Access Products       2,191     2,739     11,607      21,816

    Total                        $26,071   $22,503   $100,044    $100,715

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


                            CALIFORNIA AMPLIFIER, INC.

    CONSOLIDATED BALANCE SHEETS
    (in thousands)

                                                 February 28,    February 28,
                                                      2003           2002

                              ASSETS

    Current assets:
      Cash and cash equivalents                      $21,947        $23,156
      Accounts receivable, net                        16,053          8,219
      Inventories                                     12,862          9,472
      Deferred income tax assets                       1,130          3,580
      Prepaid expenses and other current assets        1,100          1,312
        Total current assets                          53,092         45,739

    Property and equipment, at cost, net of
     accumulated depreciation and amortization         9,322          7,375
    Goodwill, net of amortization                     20,938          3,287
    Deferred income tax assets,
     less current portion                              5,400             --
    Other assets                                         845            287

                                                     $89,597        $56,688

            LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Current portion of long-term debt               $3,005           $917
      Accounts payable                                11,553          5,713
      Accrued liabilities                              3,847          8,850
        Total current liabilities                     18,405         15,480

    Long-term debt, net of current portion            12,569          3,628

    Stockholders' equity:
      Common stock                                       147            136
      Additional paid-in capital                      43,441         27,569
      Retained earnings                               15,836         10,676
      Accumulated other comprehensive loss              (801)          (801)
        Total stockholders' equity                    58,623         37,580

                                                     $89,597        $56,688


SOURCE California Amplifier, Inc.

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