Press Release Details

View all Press Releases

California Amplifier Reports FY 2004 First Quarter Results

06/19/03

CAMARILLO, Calif., June 19 /PRNewswire-FirstCall/ -- California Amplifier, Inc. (Nasdaq: CAMP) today reported results for its first quarter ended May 31, 2003.

Sales for the first quarter of fiscal 2004 were $18.6 million, compared to $22.5 million for the first quarter of the prior year. Net loss for the first quarter was $1.1 million, or $0.07 per diluted share, compared to net income of $1.5 million, or $0.10 per diluted share for the first quarter of fiscal year 2003. First quarter results include the effects of asset impairment charges of approximately $825,000 before income taxes related to manufacturing equipment and inventories within the Satellite business segment.

Fred Sturm, President and Chief Executive Officer, commented, "California Amplifier continues to reshape itself to compete in what remains a difficult market climate. During the quarter, we undertook several restructuring initiatives, including rationalizing our manufacturing capacity by consolidating two North American facilities, reducing our workforce and expanding our use of outsourced subassemblies. While our management team worked to contain costs and improve operating performance, we also maintained our focus on leveraging the Company's RF design expertise to new markets and products. We look forward to sharing the details on our progress as we meet significant milestones in terms of customer acceptance and market validation."

"Despite the challenging conditions, we remain optimistic about the long- term growth opportunities for our served markets and our balance sheet remains strong with nearly $22 million in cash," added Mr. Sturm. "Given the industry build-up of certain satellite products inventory and the continued uncertainty in the wireless market, we continue to closely monitor our cost structure and seek ways to improve the efficiency of our operations."

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 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 more information, contact:

     Crocker Coulson
     Partner
     Coffin Communications Group
     (818) 789-0100
     crocker.coulson@coffincg.com

     Rick Vitelle
     Chief Financial Officer
     California Amplifier, Inc.
     (805) 987-9000



     CONSOLIDATED STATEMENTS OF OPERATIONS
     (unaudited, in thousands, except per share data)

                                                       Three Months Ended
                                                     May 31,        May 31,
                                                       2003          2002

    Sales                                            $18,566        $22,482
    Cost of sales                                     17,260         16,638

    Gross profit                                       1,306          5,844

    Operating expenses:
      Research and development                         1,362          1,701
      Selling                                            494            730
      General and administrative                         844          1,050

    Total operating expenses                           2,700          3,481

    Operating income (loss)                           (1,394)         2,363

    Non-operating expense                                (53)            (1)

    Income (loss) before income taxes                 (1,447)         2,362

    Income tax (provision) benefit                       345           (896)

    Net income (loss)                                $(1,102)        $1,466

    Net income (loss) per share:
      Basic                                            $(.07)          $.10
      Diluted                                          $(.07)          $.10

    Shares used in per share
     calculations:
      Basic                                           14,745         14,373
      Diluted                                         14,913         14,756


    BUSINESS UNIT SALES INFORMATION:

                                                        Three Months Ended
                                                      May 31,        May 31,
                                                       2003           2002

    Satellite Products                               $16,621        $19,474
    Wireless Access Products                           1,945          3,008
    Total                                            $18,566        $22,482


    CONSOLIDATED BALANCE SHEETS
    (in thousands)
                                                     May 31,     February 28,
                                                       2003           2003
                                                    (unaudited)


                           ASSETS

    Current assets:
      Cash and cash equivalents                      $21,899        $21,947
      Accounts receivable, net                         6,680         16,053
      Inventories                                     14,103         12,862
      Deferred income tax assets                       1,454          1,130
      Prepaid expenses and other current assets        1,329          1,100
       Total current assets                           45,465         53,092

    Property and equipment, at cost, net of
     accumulated depreciation and amortization         7,929          9,322
    Deferred income tax assets, less current portion   5,400          5,400
    Goodwill                                          20,938         20,938
    Other assets                                         747            845
                                                     $80,479        $89,597

            LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Current portion of long-term debt               $3,425         $3,005
      Accounts payable                                 4,558         11,553
      Accrued payroll and employee benefits              798          1,649
      Other accrued liabilities                        2,275          2,198
        Total current liabilities                     11,056         18,405

    Long-term debt, net of current portion            11,899         12,569

    Stockholders' equity:
      Common stock                                       147            147
      Additional paid-in capital                      43,444         43,441
      Retained earnings                               14,734         15,836
      Accumulated other comprehensive loss              (801)          (801)
        Total stockholders' equity                    57,524         58,623

                                                     $80,479        $89,597

SOURCE California Amplifier, Inc.

Categories: Press Releases
View all Press Releases