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
/PRNewswire-FirstCall/ -- 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 Partner CCG Investor
Relations (818) 789-0100 Rick Vitelle Chief Financial Officer
CalAmp (805) 987-9000 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
amoritization 260 -- In-process research and development 471 --
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 income (loss) 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 Segment Revenue
Information (1) Three Months Ended May 31, 2004 2003 Products
Division $40,499 $18,566 Solutions Division 4,498 -- Total sales
$44,997 $18,566 (1) Effective with the acquisition of Vytek
Corporation on April 12, 2004, California Amplifier realigned its
operations into a divisional structure in which CalAmp's existing
Satellite and Wireless Access businesses were combined, together
with Vytek's products manufacturing business, into a new Products
Division. The remainder of Vytek's operations, consisting
principally of revenues generated by professional engineering
services and the development of software applications, comprise the
new Solutions Division. CALIFORNIA AMPLIFIER, INC. CONSOLIDATED
BALANCE SHEETS (Unaudited - In thousands) May 31, February 28, 2004
2004 (unaudited) 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
Equipment and improvements, net 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 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 current 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
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 DATASOURCE: California Amplifier, Inc. CONTACT: Crocker
Coulson of CCG Investor Relations, +1-818-789-0100, , for
California Amplifier, Inc.; or Rick Vitelle, Chief Financial
Officer of California Amplifier, Inc., +1-805-987-9000 Web site:
http://www.calamp.com/
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