Alpha Industries Announces Third Quarter Earnings Up 51%, With EPS of $0.44; Record Quarter for Sales and Earnings.WOBURN, Mass.--(BUSINESS WIRE)--Jan. 12, 1999--ALPHA INDUSTRIES, 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 third fiscal quarter ended December 27, 1998. The Company reported net income for the third quarter of $4.8 million or $0.44 per share, up 51% compared with net income of $3.2 million or $0.30 per share for the comparable period 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 quarter were $32.5 million compared with $30.8 million for the same period last year. New orders received in the quarter totaled $32.7 million. The Company's Wireless Semiconductor segment had sales of $17.9 million and generated $2.5 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 (ASP) had sales of $7.7 million and generated $1.9 million in operating profit at a 49% gross margin. Ceramic Products had sales of $6.9 million and generated $734 thousand in operating profit at a 36% gross margin. Driven by shipments for new digital handset platforms, deliveries to the Company's largest customer accounted for 27% of year to date sales. For the first time, sales in the quarter to an additional major wireless OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and exceeded 10% of total sales. Tom Leonard Tom Leonard is the name of several notable people:
To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of new orders that began in September continued to strengthen during the quarter. Shipments for new Motorola and Ericsson digital handsets fueled the growth in our Wireless Semiconductor sector, which experienced a 26% increase in sales and a 20% gain in orders over the prior quarter. We also received orders for two exciting new product areas -- 3Com's Palm(TM) VII wireless PDA (Personal Digital Assistant) A handheld computer for managing contacts, appointments and tasks. It typically includes a name and address database, calendar, to-do list and note taker, which are the functions in a personal information manager (see PIM). and an upcoming home wireless networking See wireless network. system. These two orders support our expanded focus on the emerging markets for wireless data applications. "As we look forward, we see great opportunities for Alpha. The 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 markets are growing faster than previously forecast. We are increasing our penetration of major wireless OEMs, and new digital handsets from Motorola and Ericsson are ramping up unusually fast. The emerging markets for millimeter wave applications, such as broadband access See broadband and wireless broadband. equipment, are showing buoyant activity, and the market for new satellite applications continues to grow. We are introducing new products that support our growth in these wireless telephony and data markets. "We are working to augment our technology portfolio through strategic alliances that will bring additional semiconductor technologies. At the same time, we are driving to identify opportunities for acquisitions that will further strengthen Alpha and enhance shareholder value." Company Summary - 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. designs and manufactures a broad range of products for microwave and radio frequency wireless communications applications. The Wireless Semicon-ductor segment provides gallium arsenide (GaAs) integrated circuits 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 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 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 that constitute the Company's current intentions, hopes, beliefs, expectations or predictions of the future and are, therefore, inherently subject to risks and uncertainties. The Company's results could differ materially based on various factors, including without limitation: cancellation or deferral 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 financial results is included in the Company's periodic reports filed with the S.E.C., 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. -0-
ALPHA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
--------
(unaudited) Third Quarter Ended Nine Months Ended
--------
Dec. 27 Dec. 28 Dec. 27 Dec. 28
(in thousands, except
per share data) 1998 1997 1998 1997
--------
Net sales $ 32,489 $ 30,751 $ 92,070 $ 85,027
Cost of sales 18,151 18,928 52,046 53,678
Research and
development expenses 3,397 2,545 9,310 7,286
Selling and
administrative expenses 5,809 5,684 16,728 16,459
Operating income 5,132 3,594 13,986 7,604
Interest expense (61) (126) (231) (397)
Interest income
and other, net 231 39 647 138
Income before
income taxes 5,302 3,507 14,402 7,345
Provision for
income taxes 530 351 1,440 735
Net income (1) $ 4,772 $ 3,156 $ 12,962 $ 6,610
Net income per
share diluted (1) $ 0.44 $ 0.30 $ 1.20 $ 0.63
Net income
per share basic $ 0.45 $ 0.31 $ 1.23 $ 0.65
Weighted average
common shares diluted 10,935 10,641 10,807 10,414
Weighted average
common shares basic 10,557 10,280 10,515 10,136
COMPARATIVE BALANCE SHEET
(unaudited) Dec. 27 March 29
(in thousands) 1998 1998
Assets
Current assets
Cash, cash equivalents
and short-term investments $22,755 $15,849
Accounts receivable, net 19,318 18,500
Inventories 8,883 7,941
Prepaid expenses and
other current assets 2,178 883
Property, plant and equipment,
less accumulated
depreciation and amortization 37,975 32,664
Other assets 1,258 1,092
Total assets $92,367 $76,929
Liabilities and Equity
Current liabilities
Current portion of
long-term debt $ 1,325 $ 1,876
Current maturities of
capital lease obligations -- 8
Accounts payable 7,228 5,725
Accrued liabilities and
other current liabilities 10,998 9,503
Long-term debt 769 1,625
Other long-term liabilities 1,882 2,370
Stockholders' equity 70,165 55,822
Total liabilities and equity $92,367 $76,929
-0- (1) Reported earnings reflect a 10% tax rate, due to utilization of net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. tax carryforwards. Alpha will begin reporting earnings on a fully taxed basis, assumed to be 36%, beginning with the first quarter of Fiscal 2000, which ends June 1999. At the fully taxed rate, net income for the current quarter was $3.4 million or $0.31 per share, compared with $2.2 million or $0.21 per share for the comparable period last year. |
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