EXHIBIT 99-1
FOR IMMEDIATE RELEASE:
CalAmp Reports Fiscal 2004 Fourth Quarter and Year-End Results
* Fiscal 2004 sales reach record level
* Quarterly conference call to be held Tuesday 4/27/04
VENTURA COUNTY, CA, April 26, 2004 - California Amplifier, Inc. (Nasdaq:
CAMP) today reported results for its fourth quarter and fiscal year ended
February 28, 2004.
Sales for the fiscal 2004 fourth quarter were $41.6 million, an increase of
60% compared to $26.1 million for the fourth quarter of the prior year. Net
income for the fourth quarter increased by 200% to $3.0 million, or $0.18
per diluted share, compared to $1.0 million, or $0.06 per diluted share for
the fourth quarter of last year.
Sales for fiscal year 2004 were a record $128.6 million, compared to $100.0
million for fiscal year 2003. Net income for fiscal year 2004 was $5.7
million, or $0.37 per diluted share, compared to $5.2 million, or $0.35 per
diluted share for fiscal year 2003.
Fred Sturm, President and Chief Executive Officer commented, "We are pleased
with our overall financial performance for fiscal year 2004. Despite a
difficult start to the year in our core satellite business, we rebounded
strongly in the second half of the year and we were able to complete fiscal
2004 at a record level of sales and also post our fourth consecutive year of
profitability.
Mr. Sturm added, "During the year we also made significant progress in two
key aspects of our business. First, we reduced our fixed manufacturing
costs by subcontracting a significant portion of our manufacturing
operations. Second, we've begun the process of transforming our Company
into a communication solutions provider for both wired and wireless
applications with our recent acquisition of Vytek Corporation. This
acquisition enables diversification into markets we believe will provide
future growth and continued profitability. I'm excited about the
opportunities that I expect will be presented to us as a result of our
combined strength in engineering, marketing, manufacturing and professional
services."
Mr. Sturm also noted, "Based on our current visibility, we estimate fiscal
2005 first quarter revenues in the range of $43 to $50 million and earnings
in the range of $0.06 to $0.10 per diluted share. Our merger with Vytek
Corporation was completed on April 12, so our first quarter ending May 31
will include Vytek's operations for about one-half of the quarter. The
first quarter is expected to include the write-off of Vytek's in-process R&D
of approximately $500,000 pursuant to purchase accounting rules. Other
factors impacting this latest guidance are an anticipated increase in the
Company's effective tax rate in fiscal 2005 to approximately 38%, compared
to an effective rate of less than one percent in fiscal 2004, and the
impact of recent substantial increases in the cost of raw steel, which is a
key material for our satellite business. We are, however, taking steps to
minimize the impact of these cost increases."
As more fully described in a Form 8-K filed today, on April 21, 2004 the
Company was served with a complaint alleging certain violations of the
California labor code. The Company intends to defend itself vigorously
against these allegations and has established what management believes to be
an appropriate reserve in the quarter ended February 28, 2004.
In a change from the schedule previously announced, the Company will hold
its quarterly conference call on Tuesday, April 27, 2004 at 1:30 p.m.
Pacific Time to discuss its fiscal 2004 fourth quarter financial results and
current business status. A live audio webcast of the conference call can be
accessed on either the 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.
CalAmp offers service providers, enterprise customers and technology
developers a comprehensive range of communications access and content
delivery products, services and solutions. The Company leverages its
expertise in supplying cost-effective, high volume RF products, as a leading
provider of direct broadcast satellite (DBS) equipment to the U.S. DBS
market. Drawing upon its growing expertise in networking applications and
wireless technologies, the Company has developed solutions for digital
multimedia delivery, residential broadband data delivery, retailing
applications, public safety markets and wireless enterprise connectivity.
With diverse capabilities ranging from product development through cost-
effective, large-scale production, CalAmp provides valuable, high quality
solutions to a broad array of customers and markets. The Company is
headquartered in Ventura County, California and has approximately 800
employees. CalAmp was founded in 1981 and has been publicly traded since
1983. For more information visit: www.calamp.com.
Statements in this press release that are not historical in nature are
forward-looking statements, which involve known and unknown risks and
uncertainties. 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.
Actual results could differ materially from those implied by such forward-
looking statements due to a variety of factors, including, general and
industry economic conditions, competition, development factors, operating
costs, the Company's ability to integrate the Vytek acquisition successfully
and other risks and uncertainties that are detailed from time to time in the
Company's filings with the Securities and Exchange Commission. 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.
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 Year Ended
February 28, February 28,
------------------- -------------------
2004 2003 2004 2003
------- ------- ------- -------
Sales $41,605 $26,071 $128,616 $100,044
Cost of goods sold 35,179 22,115 110,950 79,511
------- ------- ------- -------
Gross profit 6,426 3,956 17,666 20,533
------- ------- ------- -------
Operating expenses:
Research and development 1,427 1,167 5,363 5,982
Selling 666 617 2,336 2,560
General and administrative 1,346 777 3,984 3,781
------- ------- ------- -------
Total operating expenses 3,439 2,561 11,683 12,323
------- ------- ------- -------
Operating income 2,987 1,395 5,983 8,210
Non-operating expense, net (49) (56) (243) (215)
------- ------- ------- -------
Income before income taxes 2,938 1,339 5,740 7,995
Income tax benefit (provision) 36 (368) (26) (2,835)
------- ------- ------- -------
Net income $ 2,974 $ 971 $ 5,714 $ 5,160
======= ======= ======= =======
Net income per share:
Basic $ 0.20 $ 0.07 $ 0.39 $ 0.35
Diluted $ 0.18 $ 0.06 $ 0.37 $ 0.35
Shares used in per share
calculations:
Basic 14,885 14,740 14,791 14,639
Diluted 16,179 14,960 15,390 14,870
BUSINESS UNIT SALES INFORMATION:
Three Months Ended Year Ended
February 28, February 28,
------------------- -------------------
2004 2003 2004 2003
------- ------- ------- -------
Satellite Products $39,750 $23,880 $121,000 $ 88,437
Wireless Access Products 1,855 2,191 7,616 11,607
------- ------- ------- -------
Total $41,605 $26,071 $128,616 $100,044
======= ======= ======= =======
<page>
CALIFORNIA AMPLIFIER, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited - in thousands)
February 28,
2004 2003
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 22,885 $ 21,947
Accounts receivable, net 18,579 16,053
Inventories 20,253 12,862
Deferred income tax assets 2,807 1,130
Prepaid expenses and other current assets 3,244 1,100
-------- --------
Total current assets 67,768 53,092
Property and equipment, at cost, net of
accumulated depreciation and amortization 4,381 9,322
Deferred income tax assets, less current portion 3,956 5,400
Goodwill 20,938 20,938
Other assets 599 845
-------- --------
$ 97,642 $ 89,597
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 3,527 $ 3,005
Accounts payable 17,395 11,553
Accrued payroll and employee benefits 1,513 1,649
Other accrued liabilities 2,078 2,198
-------- --------
Total current liabilities 24,513 18,405
-------- --------
Long-term debt, less current portion 7,766 12,569
-------- --------
Commitments and contingencies
Stockholders' equity:
Common stock 149 147
Additional paid-in capital 44,486 43,441
Retained earnings 21,550 15,836
Accumulated other comprehensive loss (822) (801)
-------- --------
Total stockholders' equity 65,363 58,623
-------- --------
$ 97,642 $ 89,597
======== ========
# # #