EXHIBIT 99-2
FOR IMMEDIATE RELEASE:
California Amplifier Reports FY 2004 Third Quarter Results
* Company generates record sales of $44.2 million in latest quarter
* Q3 diluted EPS of 22 cents, up from 6 cents a year ago
CAMARILLO, California, December 23, 2003 --- California Amplifier, Inc.
(Nasdaq: CAMP) today reported results for its third quarter ended November
30, 2003.
Sales for the third quarter of fiscal 2004 were $44.2 million, compared to
$24.2 million for the immediately preceding quarter and $24.0 million for
the third quarter of the prior year. Net income for the third quarter was
$3.5 million, or $0.22 per diluted share, compared to net income of $391,000,
or $0.03 per diluted share in the immediately preceding quarter, and net
income of $905,000, or $0.06 per diluted share, in the third quarter of last
year.
"We are pleased with our overall performance during the third quarter,
during which we successfully responded to the substantial increase in market
demand for our satellite television reception products," stated Fred Sturm,
President and Chief Executive Officer. "Our third quarter revenue, which
increased over 80% on both a sequential quarter and prior year basis,
represents a record level for our Company, greatly surpassing the previous
record for quarterly revenue of $32.8 million set two years ago. The
performance in the latest quarter was made possible by the outstanding
efforts of our employees and our supply chain partners."
Mr. Sturm continued, "In addition to increased market demand, our record
revenues in the third quarter were the result of higher average selling
prices on our latest generation satellite television products. We remain
encouraged by the continued growth in subscriber base by the U.S. satellite
television providers, and we are continuing our efforts to support their
product requirements."
For the nine months ended November 30, 2003 sales were $87.0 million,
compared to $74.0 million in the prior year. Net income for the first nine
months of fiscal year 2004 was $2.7 million, or $0.18 per diluted share,
compared to net income of $4.2 million, or $0.28 per diluted share, in the
first nine months of fiscal year 2003. Net income for the latest nine
month period is down from the prior year because of manufacturing
inefficiencies associated with substantial quarter-to-quarter changes in
customer demand and production volume, material expedite costs associated
with the significant ramp-up in production volume beginning in the second
quarter, and increased competitive pricing pressures in the Satellite
products business.
Mr. Sturm also noted, "Based on our current visibility, we estimate fourth
quarter sales in the range of $40 to $48 million and earnings in the range
of $0.18 to $0.24 per diluted share."
As separately announced today, the Company has entered into an agreement to
acquire Vytek Corporation, a privately-held company engaged in providing
software and hardware solutions and services that enable wired and wireless
access to information.
Conference Call
The Company will conduct a conference call to discuss its third quarter
results and the planned acquisition of Vytek, Inc. on Tuesday, December 23,
2003 at 1:30 p.m., Pacific Time that will be available as a live audio
webcast at Company's web site, www.calamp.com, or on the web site
www.prnewswire.com under the Multimedia News section. Both links require
listeners to install either RealPlayer or Windows Media Player to access the
event. A replay of the audio broadcast will be available for 14 days after
the call's completion.
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 Nine Months Ended
November 30, November 30,
------------------- -------------------
2003 2002 2003 2002
------- ------- ------- -------
Sales $44,248 $23,965 $87,011 $73,973
Cost of goods sold 37,514 19,587 75,771 57,396
------- ------- ------- -------
Gross profit 6,734 4,378 11,240 16,577
------- ------- ------- -------
Operating expenses:
Research and development 1,338 1,391 3,936 4,815
Selling 627 469 1,670 1,943
General and administrative 925 902 2,638 3,004
------- ------- ------- -------
Total operating expenses 2,890 2,762 8,244 9,762
------- ------- ------- -------
Operating income 3,844 1,616 2,996 6,815
Non-operating expense, net (12) (79) (194) (159)
------- ------- ------- -------
Income before income taxes 3,832 1,537 2,802 6,656
Income tax provision (380) (632) (62) (2,467)
------- ------- ------- -------
Net income $ 3,452 $ 905 $ 2,740 $ 4,189
======= ======= ======= =======
Net income (loss) per share:
Basic $ 0.23 $ 0.06 $ 0.19 $ 0.29
Diluted $ 0.22 $ 0.06 $ 0.18 $ 0.28
Shares used in per share
calculations:
Basic 14,788 14,720 14,760 14,605
Diluted 15,555 14,850 15,128 14,840
BUSINESS UNIT SALES INFORMATION:
Three Months Ended Nine Months Ended
November 30, November 30,
------------------- -------------------
2003 2002 2003 2002
------- ------- ------- -------
Satellite Products $42,607 $20,443 $81,250 $64,557
Wireless Access Products 1,641 3,522 5,761 9,416
------- ------- ------- -------
Total $44,248 $23,965 $87,011 $73,973
======= ======= ======= =======
<page>
CALIFORNIA AMPLIFIER, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
November 30, February 28,
2003 2003
-------- --------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 25,286 $ 21,947
Accounts receivable, net 17,399 16,053
Inventories 13,875 12,862
Deferred income tax assets 2,576 1,130
Prepaid expenses and other current assets 935 1,100
-------- --------
Total current assets 60,071 53,092
Property and equipment, at cost, net of
accumulated depreciation and amortization 7,887 9,322
Deferred income tax assets, less current portion 4,098 5,400
Goodwill 20,938 20,938
Other assets 668 845
-------- --------
$ 93,662 $ 89,597
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 3,375 $ 3,005
Accounts payable 15,671 11,553
Accrued payroll and employee benefits 1,311 1,649
Other accrued liabilities 1,488 2,198
-------- --------
Total current liabilities 21,845 18,405
-------- --------
Long-term debt, less current portion 9,874 12,569
-------- --------
Commitments and contingencies
Stockholders' equity:
Common stock 148 147
Additional paid-in capital 44,024 43,441
Retained earnings 18,576 15,836
Accumulated other comprehensive loss (805) (801)
-------- --------
Total stockholders' equity 61,943 58,623
-------- --------
$ 93,662 $ 89,597
======== ========
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