Alpha Industries announces third quarter results.WOBURN, Mass.--(BUSINESS WIRE)--Jan. 30, 1997--Alpha Industries, Inc. (AMEX AMEX See: American Stock Exchange Symbol: AHA) today announced the results for the third quarter ended December 29, 1996. Third quarter earnings showed a net loss for the quarter of $2.1 million or $0.21 per share, compared with net income of $1.4 million or $0.16 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 $22.3 million, compared with $25.2 million for the same period last year. New orders received in the third quarter totaled $24.1 million, compared with $26.6 million for the same period last year. The loss for the quarter is attributable to a disappointing shortfall of orders and sales at Trans-Tech, Inc., the Company's ceramics subsidiary in Maryland. Although order volume is increasing, the rate of increase is not yet satisfactory, and as a result, Trans-Tech has significant unused capacity. Trans-Tech is addressing this situation in two initiatives. As previously announced, Trans-Tech is divesting its European manufacturing operation. A number of alternatives are being explored, and it appears likely that the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). will be finalized soon. Trans-Tech will consolidate manufacturing to its Maryland facilities. This divestiture will reduce Trans-Tech's operating costs operating costs npl → gastos mpl operacionales by almost $500,000 per quarter on an ongoing basis. In addition, the Company is finalizing a program to resize Verb 1. resize - change the size of; make the size more appropriate size - make to a size; bring to a suitable size rescale - establish on a new scale Trans-Tech's operations in Maryland to match the current order flow, so as to provide the basis for a quick return to profitability and stable future operations. This resizing will occur within the next few weeks and is expected to involve a significant reduction in force, some consolidation of operations into Trans-Tech's main facility, and an adjustment of the investment in certain products. The Company expects that the Trans-Tech consolidation and the European divestiture will be complete in the fourth quarter. Under current accounting guidelines, the Company will report in the fourth quarter most of the costs in connection with these actions, which, under the least favorable of the alternatives being considered, are not expected to exceed $4.9 million. As the Company announced separately yesterday, Trans-Tech has a new President and General Manager, Rick Langman, who started work at Trans-Tech earlier this week. Mr. Langman was previously the Director of Operations/Electronics, and before that Director of Sales and Marketing/Electronics, at Coors Ceramics Company. At Alpha Microwave, new orders for the semiconductor and MMIC (Monolithic Microwave IC) An integrated circuit used in high-frequency applications such as mobile phones. Also known as "monolithic microwave/millimeter-wave IC," MMICs combine transistors and passive devices (resistors, capacitors, etc. operations continue a strong ramp and are now approaching the high levels achieved in the previous year's third quarter. Semiconductor and MMIC shipments in the December quarter were strong enough to return the Massachusetts operations to profitability, and the Company expects the shipment rate to continue to rise in line with orders. In particular, 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) MMICs, which is the Company's fastest growing segment, showed new order strength that confirms our decision to invest in expanded manufacturing capacity. Our previously announced measures to double GaAs production capacity are being put in place. The 4 inch GaAs wafer line is now up and running, in parallel with our existing 3 inch line, and the conversion is showing encouraging results. The third shift on the GaAs operation has been hired and is being phased in, with some of our best production cell leaders guiding the new personnel. Our optimism for the semiconductor and MMIC business is strengthened by continued receipt of new design wins, including MMICs for a 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. PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. handset, a Japanese PDC (1) (Primary Domain Controller) A Windows NT/2000 service that manages security for its local domain. Every domain has one PDC, which contains a database of usernames, passwords and permissions. handset, and two dual-frequency PCS/cellular handsets, as well as several MMICs for base stations and discrete semiconductors for CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. and Wireless Local Loop applications. The Massachusetts operations are on plan, with predictable financial results and excellent operational control. The increase in orders and our expansion in capacity should result in solid profitability for these operations. The sale of the digital radio component product line is expected to occur shortly, and although there should be no impact on earnings if the sale occurs as planned, the elimination of complexity and uncertainty will help us to intensify our focus on the semiconductor and MMIC business in wireless markets. Tom Leonard Tom Leonard is the name of several notable people:
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 are inherently subject to risks and uncertainties. The Company's results could differ materially based on various factors, including without limitation: cancellation or deferral deferral - Waiting for quiet on the Ethernet. of customer orders, 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 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. (including PCS), difficulty in divesting the above-mentioned business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets (including the possibility that the Company may be unable to structure acceptable transactions), difficulties in manufacturing new or existing products in sufficient quantity or quality, increased competitive pressures, 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 the most recent 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. and subsequent Forms 10-Q. Alpha Industries designs and manufactures a broad range of monolithic integrated circuits The common form of chip design, in which the base material (substrate) contains the pathways as well as the active elements that take part in its operation. , ceramic products, discrete semiconductors and subsystems for microwave, millimeter wave and radio frequency wireless communications applications. Alpha's products serve the needs of commercial manufacturers of cellular telephones, personal communications systems and networks (PCS/PCN), global positioning systems Global Positioning System: see navigation satellite. Global Positioning System (GPS) Precise satellite-based navigation and location system originally developed for U.S. military use. , mobile radio, and specialized wireless data services. -0-
ALPHA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(unaudited) Third Quarter Ended Nine Months Ended
Dec. 29, Dec. 31, Dec. 29, Dec. 31,
1996 1995 1996 1995
(in thousands, except
per share data)
Net sales $22,287 $25,237 $62,490 $71,404
Cost of sales 17,046 16,684 50,638 47,572
Research and
development expenses 2,275 2,366 7,233 6,281
Selling and
administrative
expenses 4,953 4,384 14,791 13,121
Repositioning credit ---- ---- ---- (320)
------ ------ ------ ------
Operating income (loss) (1,987) 1,803 (10,172) 4,750
Interest expense (183) (211) (430) (652)
Interest income and
other, net 95 98 375 175
------ ------ ------ ------
Income (loss) before
income taxes (2,075) 1,690 (10,227) 4,273
Provision for
income taxes ---- 253 ---- 641
------ ------ ------ ------
Net income (loss) ($2,075) $1,437 ($10,227) $3,632
======= ======= ======= =======
Net income (loss)
per share ($0.21) $0.16 ($1.04) $0.43
======= ======= ======= =======
Weighted average
common shares and
common share
equivalents 9,912 8,870 9,814 8,391
======= ======= ======= =======
-0-
COMPARATIVE BALANCE SHEET
(unaudited) Dec. 29, Dec. 31,
(in thousands) 1996 1995
Assets
Current assets
Cash and cash equivalents $2,000 $21,247
Short-term investments 3,046 ---
Accounts receivable, net 17,431 16,522
Inventories 12,545 11,834
Prepaid expenses and
other current assets 984 816
Property, plant and equipment,
less accumulated
depreciation and amortization 29,952 23,911
Other assets 609 692
------ ------
Total assets $66,567 $75,022
====== ======
Liabilities and Equity
Current liabilities
Current portion of
long-term debt $1,954 $268
Current maturities of
capital lease obligations 357 404
Accounts payable 4,240 5,681
Accrued liabilities and
other current liabilities 6,150 7,242
Long-term debt 4,099 2,709
Other long-term liabilities 1,295 1,643
Stockholders' equity 48,472 57,075
------ ------
Total liabilities and equity $66,567 $75,022
====== ======
-0- CONTACT: James C. Nemiah Investor Relations Investor relations The process by which the corporation communicates with its investors. Alpha Industries, Inc. (617) 935-5150 |
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