EXHIBIT 99-1
FOR IMMEDIATE RELEASE:
California Amplifier Reports FY 2005 First Quarter Results
* Q1 revenues up 140% from prior year to $45 million
* Q1 net income improves $2.4 million from prior year
Oxnard, Calif., July 13, 2004 - California Amplifier, Inc. (NASDAQ: CAMP)
today reported results for its first quarter ended May 31, 2004.
Revenue for the first quarter of fiscal 2005 was $45.0 million, compared
to $18.6 million for the first quarter of the prior year. The period over
period increase in revenue is due primarily to the improvement in the
satellite product sales which began late in the Company's fiscal 2004
second quarter. Net income for the first quarter was $1.3 million, or
$0.07 per diluted share, compared to a net loss of $1.1 million, or $0.07
per diluted share for the first quarter of fiscal year 2004.
Fred Sturm, President and Chief Executive Officer, commented, "CalAmp is
in the early stages of re-defining the Company beyond its historical set
of customers and markets. Integration of the Vytek business is well
underway and we are actively pursuing opportunities which will capitalize
on our combined strengths in RF and embedded software design, development
and manufacturing to provide a complete content delivery or communication
solution. The newly formed Solutions Division had revenues of $4.5 million
for the seven week period included in this quarter. The Solutions Division
experienced a loss of approximately $1.5 million during this period
including pre-tax charges arising from the acquisition for writing off in-
process research and development of $471,000 and an intangible asset
amortization expense of $234,000. We anticipate that with the major
elements of the integration effort being concluded during the second
quarter we will begin to see improving operational contribution from this
segment of our business during the second half of our fiscal year. I am
also pleased to report that the consolidation of Vytek's product
manufacturing operation into CalAmp's Ventura County facility is
substantially ahead of plan and expected to be completed in July which
should further help to reduce costs going forward."
Mr. Sturm added, "During the quarter we continued to make progress in two
key product developments. Beta testing of our "Directed AP" product for
the enterprise WiFi Access Point market is expected to begin during August.
Also, customer testing is underway of our satellite product targeted to
support improved Digital Video Recorder market penetration by one of our
major customers. This product, which substantially reduces the cost and
complexity of installation of Digital Video Recorders, is undergoing set
top box compatibility and stress testing. These tests are expected to be
complete in August, with production starting in our fiscal third quarter."
Mr. Sturm also noted, "Based on our current visibility, we estimate fiscal
2005 second quarter revenues in the range of $48 to $55 million and
earnings in the range of $0.05 to $0.09 cents per diluted share. Included
in these estimates are charges of $434,000 for amortization of intangible
assets."
About CalAmp
- ------------
CalAmp is a leading provider of wired and wireless communication solutions
with comprehensive capabilities ranging from product design and consulting
services through high volume manufacturing and support. CalAmp is a
trusted partner delivering cost-effective, high quality solutions to a
broad array of customers and markets including direct broadcast satellite
(DBS), digital multimedia content delivery, health care, retailing, public
safety, and both residential and enterprise connectivity. The Company is
headquartered in Ventura County, California and has approximately 800
employees. Founded in 1981, CalAmp has been publicly traded since 1983 as
NASDAQ: CAMP.
Forward Looking Statement
- -------------------------
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 amounts)
Three Months Ended
May 31,
-------------------
2004 2003
------- -------
Revenue $44,997 $18,566
Cost of revenue 36,696 17,260
------- -------
Gross profit 8,301 1,306
------- -------
Operating expenses:
Research and development 1,807 1,362
Selling 1,072 494
General and administrative 2,445 844
Intangible asset amortization 260 -
In-process research and
development 471 -
------- -------
Total operating expenses 6,055 2,700
------- -------
Operating income (loss) 2,246 (1,394)
Non-operating expense, net (64) (53)
------- -------
Income (loss) before income
taxes 2,182 (1,447)
Income tax (provision) benefit (873) 345
------- -------
Net income (loss) $ 1,309 $(1,102)
======= =======
Net (loss) income per share:
Basic $ 0.07 $ (0.07)
Diluted $ 0.07 $ (0.07)
Shares used in per share
calculations:
Basic 18,755 14,745
Diluted 19,750 14,745
BUSINESS UNIT SALES INFORMATION:
Three Months Ended
May 31,
-------------------
2004 2003
------- -------
Products Division $40,499 $18,566
Solutions Division 4,498 -
------- -------
Total $44,997 $18,566
======= =======
<page>
CALIFORNIA AMPLIFIER, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited - in thousands)
May 31, Feb. 28,
2004 2004
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 23,640 $ 22,885
Accounts receivable, net 20,931 18,579
Inventories 23,408 20,253
Deferred income tax assets 3,018 2,404
Prepaid expenses and other current assets 5,130 3,244
-------- --------
Total current assets 76,127 67,365
Property and equipment, at cost, net of
accumulated depreciation and amortization 5,309 4,381
Deferred income tax assets, less current portion 2,936 4,359
Goodwill 100,562 20,938
Other intangible assets, net 5,261 200
Other assets 2,455 399
-------- --------
$192,650 $ 97,642
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 3,774 $ 3,603
Accounts payable 20,570 17,395
Accrued payroll and employee benefits 3,403 1,513
Other accrued liabilities 4,517 2,078
Deferred revenue 1,075 -
-------- --------
Total current liabilities 33,339 24,589
-------- --------
Long-term debt, less current portion 9,077 7,690
-------- --------
Commitments and contingencies
Stockholders' equity:
Common stock 231 149
Additional paid-in capital 137,539 44,486
Common stock held in escrow (9,594) -
Retained earnings 22,859 21,550
Accumulated other comprehensive loss (801) (822)
-------- --------
Total stockholders' equity 150,234 65,363
-------- --------
$192,650 $ 97,642
======== ========
# # #