EXHIBIT 99-1
FOR IMMEDIATE RELEASE:
California Amplifier Reports Fiscal 2004 Second Quarter Results
* Sales increase 30% from preceding quarter
* Company returns to profitability in fiscal second quarter
CAMARILLO, California, October 2, 2003 --- California Amplifier, Inc.
(Nasdaq: CAMP) today reported results for its second quarter ended August 31,
2003.
Sales for the second quarter of fiscal 2004 were $24.2 million, compared to
$18.6 million for the first quarter of fiscal year 2004 and $27.5 million or
the second quarter of the prior year. Net income for the second quarter was
$390,000, or $0.03 per diluted share, compared to a net loss of $1.1 million,
or ($0.07) per diluted share in the previous quarter, and net income of $1.8
million, or $0.12 per diluted share, in the second quarter of last year.
For the six months ended August 31, 2003 sales were $42.8 million, compared
to $50.0 million in the prior year. The net loss during the first six
months of fiscal year 2004 was $712,000, or ($0.05) per diluted share,
compared to net income of $3.3 million, or $0.22 per diluted share, in the
first six months of fiscal year 2003.
Fred Sturm, President and Chief Executive Officer commented, "Our Satellite
Products business has experienced a dramatic improvement in recent months.
Market activity with our key customers has increased substantially, driven
primarily by their promotional programs and seasonal demand entering the
holiday season. In order to satisfy our customers' higher volume
requirements, we are rapidly ramping up our production capability, thereby
reversing the contraction which occurred in the first quarter. However, we
are incurring additional costs as a result of this ramp-up, principally due
to the expedited procurement of materials."
Mr. Sturm continued, "In our Wireless Access business the development of
Ecco[TM], our PCS repeater product, is progressing well. A small number of
pre-production units have already been supplied to a major wireless service
provider for testing and evaluation purposes. We are also in discussion
with other prospective customers who have expressed interest in the potential
of our economical, integrated repeater design to improve in-building
wireless coverage and increase subscriber satisfaction."
Mr. Sturm also noted, "Based on our current visibility, we estimate third
quarter sales in the range of $30 to $36 million and earnings in the range
of $0.07 to $0.12 per diluted share. The range of expectations reflects the
fact that results for the third quarter will depend to a large degree on the
Company's ability to economically procure materials in sufficient quantities
to fulfill existing orders."
About California Amplifier, Inc.
California Amplifier designs, manufactures and markets a broad line of
integrated microwave equipment used primarily in conjunction with satellite
television and terrestrial wireless broadband and video applications. The
Company's Satellite business unit designs and markets outdoor reception
equipment for the U.S. Direct Broadcast Satellite (DBS) television market as
well as a broad line of consumer and commercial satellite products for video
and data reception. The Wireless Access business unit designs and markets
integrated reception and two-way transmission fixed wireless equipment for
broadband data and video 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", "estimate" 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
CCG Investor Relations California Amplifier, Inc.
(818) 789-0100 (805) 987-9000
crocker.coulson@coffincg.com
[TABLES FOLLOW]
<page>
CALIFORNIA AMPLIFIER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
August 31, August 31,
------------------- -------------------
2003 2002 2003 2002
------- ------- ------- -------
Sales $24,197 $27,526 $42,763 $50,008
Cost of goods sold 20,997 21,171 38,257 37,809
------- ------- ------- -------
Gross profit 3,200 6,355 4,506 12,199
------- ------- ------- -------
Operating expenses:
Research and development 1,236 1,723 2,598 3,424
Selling 549 744 1,043 1,474
General and administrative 869 1,052 1,713 2,102
------- ------- ------- -------
Total operating expenses 2,654 3,519 5,354 7,000
------- ------- ------- -------
Operating income (loss) 546 2,836 (848) 5,199
Non-operating expense, net (129) (79) (182) (80)
------- ------- ------- -------
Income (loss) before
income taxes 417 2,757 (1,030) 5,119
Income tax benefit (provision) (27) (939) 318 (1,835)
------- ------- ------- -------
Net income (loss) $ 390 $ 1,818 $ (712) $ 3,284
======= ======= ======= =======
Net income (loss) per share:
Basic $ 0.03 $ 0.12 $ (0.05) $ 0.23
Diluted $ 0.03 $ 0.12 $ (0.05) $ 0.22
Shares used in per share
calculations:
Basic 14,747 14,720 14,746 14,547
Diluted 14,916 14,914 14,746 14,835
BUSINESS UNIT SALES INFORMATION:
Three Months Ended Six Months Ended
August 31, August 31,
------------------- -------------------
2003 2002 2003 2002
------- ------- ------- -------
Satellite Products $22,022 $24,640 $38,643 $44,114
Wireless Access Products 2,175 2,886 4,120 5,894
------- ------- ------- -------
Total $24,197 $27,526 $42,763 $50,008
======= ======= ======= =======
<page>
CALIFORNIA AMPLIFIER, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
August 31, February 28,
2003 2003
-------- --------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 23,080 $ 21,947
Accounts receivable, net 12,884 16,053
Inventories 11,700 12,862
Deferred income tax assets 2,846 1,130
Prepaid expenses and other current assets 1,387 1,100
-------- --------
Total current assets 51,897 53,092
Property and equipment, at cost, net of
accumulated depreciation and amortization 7,550 9,322
Deferred income tax assets, less current portion 3,973 5,400
Goodwill 20,938 20,938
Other assets 980 845
-------- --------
$ 85,338 $ 89,597
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 3,438 $ 3,005
Accounts payable 11,105 11,553
Accrued payroll and employee benefits 823 1,649
Other accrued liabilities 1,238 2,198
-------- --------
Total current liabilities 16,604 18,405
-------- --------
Long-term debt, less current portion 10,835 12,569
-------- --------
Commitments and contingencies
Stockholders' equity:
Common stock 147 147
Additional paid-in capital 43,453 43,441
Retained earnings 15,124 15,836
Accumulated other comprehensive loss (825) (801)
-------- --------
Total stockholders' equity 57,899 58,623
-------- --------
$ 85,338 $ 89,597
======== ========
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