Alpha Industries Announces Fourth Quarter Earnings Up 42%; Record Year and Quarter for Sales and Earnings.WOBURN, Mass.--(BUSINESS WIRE)--April 29, 1999-- ALPHA INDUSTRIES Alpha Industries is a clothing manufacturer founded in 1959 in Knoxville, Tennessee. The company makes items such as flight jackets and vests, and has made jackets for the military of the United States like the M65 Jacket. Two models are the MA-1 and CWU-45/P pilot jackets. , INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AHAA AHAA Association of Hispanic Advertising Agencies AHAA American Hearing Aid Associates AHAA Adolescent Health and Academic Achievement Study ) today announced its results for the fiscal year and quarter ended March 28, 1999. The Company reported net income for the year of $21.5 million or $1.31 per share, compared with net income of $10.3 million or $0.66 per share for the prior year. Net income for the fourth quarter was $8.5 million or $0.51 per share, compared with net income of $3.7 million or $0.23 per share for the same period last year. Excluding a tax benefit of $3.3 million or $.20 per share in the fourth quarter, net income was up 77% for the year and up 42% for the quarter, compared with the same periods last year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the year were $126.3 million, compared with $116.9 million for the prior year. Net sales for the quarter were $34.3 million, compared with $31.9 million for the same period last year. New orders received in the quarter totaled $36.4 million, compared to $32.2 million for the same period last year. For the quarter, the Company's Wireless Semiconductors segment had sales of $19.5 million and generated $2.7 million in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. at a 45% gross margin. Application Specific Products had sales of $7.5 million and generated $2.1 million in operating profit at a 49% gross margin. Ceramic Products had sales of $7.3 million and generated $0.8 million in operating profit at a 37% gross margin. Driven by shipments for new digital handset platforms, deliveries to our largest customer accounted for 28% of sales for the year. Tom Leonard Tom Leonard is the name of several notable people:
"In Wireless Semiconductors, we are seeing strong demand growth from all of our top customers. Strong market acceptance of new Motorola digital handsets has been a primary driver of this growth, since Alpha's components are in nearly every new Motorola handset. As we have previously announced, our two highest content handsets are Motorola's CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. StarTAC(TM) and their dual-band GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. V-phone, the V3688." Company Summary - Alpha Industries designs and manufactures a broad range of products for microwave and radio frequency wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. applications. The Wireless Semiconductors segment provides gallium arsenide An alloy of gallium and arsenic compound (GaAs) that is used as the base material for chips. Several times faster than silicon, it is used in high frequency applications such as cellphones, DVD players and fiber optics. (GaAs) integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. and other semiconductors to the dynamic global market for wireless telephone handsets. The Application Specific Products (ASP) segment provides a broad range of GaAs and silicon devices to instrumentation, defense, satellite and other millimeter One thousandth of a meter, or 1/25th of an inch. See metric system. wave (MMW MMW Millimeter Wave MMW Medeski, Martin, and Wood MMW Magne Magler Wiggen (Norwegian architects) MMW Mark My Words MMW Making of the Modern World ) communications markets. The Ceramic Products segment provides technical ceramic products for wireless telephony telephony without wires, usually employing electric waves of high frequency emitted from an oscillator or generator, as in wireless telegraphy. A telephone transmitter causes fluctuations in these waves, it being the fluctuations only which affect the receiver. See also: Wireless infrastructure and other wireless markets. Additional information is available at Alpha's Website - www.alphaind.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement - Except for the historical information contained herein, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that constitute the Company's current intentions, hopes, beliefs, expectation or predictions of the future which are, therefore, inherently subject to risks and uncertainties. The Company's actual results could differ materially from those anticipated in the Company's forward-looking statements based on various factors, including without limitation: cancellation or deferral deferral - Waiting for quiet on the Ethernet. of customer orders, dependence on a small number of large customers, difficulties in the timely development and market acceptance of new products, market developments that vary from the current public expectations concerning the growth of wireless communications, difficulties in manufacturing new or existing products in sufficient quantity or quality, increased competitive pressures, decreasing selling prices for the Company's products, or changes in economic conditions. Further information on factors that could affect the Company's performance is included in the Company's periodic reports filed with the SEC, including but not limited to the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended March 29, 1998, and subsequent Forms 10-Q. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstance on which any such statement is based. -0-
ALPHA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(unaudited) Fourth Quarter Ended Fiscal Year Ended
(in thousands, except Mar. 28 Mar. 29 Mar. 28 Mar. 29
per share data) 1999 1998 1999 1998
Net sales $ 34,269 $ 31,854 $ 126,339 $ 116,881
Cost of sales 19,085 19,121 71,131 72,799
Research and
development expenses 3,576 2,749 12,886 10,035
Selling and
administrative
expenses 6,039 5,900 22,767 22,359
Operating income 5,569 4,084 19,555 11,688
Interest expense (36) (74) (267) (471)
Interest income and
other, net 290 92 937 230
Income before income
taxes 5,823 4,102 20,225 11,447
Provision (credit) for
income taxes (2,705) 410 (1,265) 1,145
Net income (1) $ 8,528 $ 3,692 $ 21,490 $ 10,302
Net income per share
diluted (1) $ 0.51 $ 0.23 $ 1.31 $ 0.66
Net income per share
basic $ 0.54 $ 0.24 $ 1.36 $ 0.67
Weighted average
common shares diluted 16,769 16,012 16,351 15,711
Weighted average
common shares basic 15,980 15,593 15,824 15,302
COMPARATIVE BALANCE SHEET
(unaudited) Mar. 28 Mar. 29
(in thousands) 1999 1998
Assets
Current assets
Cash, cash equivalents and
short-term investments $ 23,760 $ 15,849
Accounts receivable, net 22,972 18,500
Inventories 8,773 7,941
Prepaid expenses and other
current assets 7,318 883
Property, plant and equipment,
less accumulated
depreciation and amortization 42,497 32,664
Other assets 1,361 1,092
Total assets $106,681 $ 76,929
Liabilities and Equity
Current liabilities
Current portion of long-term debt $ 912 $ 1,884
Accounts payable 10,700 5,725
Accrued liabilities and other
current liabilities 8,524 9,503
Long-term debt 713 1,625
Other long-term liabilities 4,818 2,370
Stockholders' equity 81,014 55,822
Total liabilities and equity $106,681 76,929
(1) Reported earnings reflect a 10% tax rate, due to the utilization
of net operating loss carryforwards. Reported earnings for the
current quarter and the fiscal year also include a tax benefit of
$3.3 million or $0.20 per share, resulting from the expected use
of net operating loss tax carryforwards. Alpha will begin
reporting earnings on a fully taxed basis beginning with the
first quarter of Fiscal 2000, which ends June 1999. At the fully
taxed rate, assumed to be 36%, net income for the current quarter
would have been $3.7 million or $0.22 per share, compared with
$2.6 million or $0.16 per share for the comparable period last
year. At the fully taxed rate, net income for the fiscal year
would have been $12.9 million or $0.79 per share, compared with
$7.3 million or $0.47 per share for the comparable period last
year.
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