Andrew Corporation Reports First Quarter Results.Business Editors, High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers ORLAND PARK Or·land Park A village of northeast Illinois, a residential and manufacturing suburb of Chicago. Population: 53,300. , Ill.--(BUSINESS WIRE)--Jan. 20, 2000 Andrew Corporation Andrew Corporation is an American multinational producer of communications devices. Andrew is a global designer, manufacturer, and supplier of communications equipment, services, and systems. (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 :ANDW) a global communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. equipment supplier reported record orders of $253.2 million, up 32% compared to last year's first quarter. Sales were $233.6 million in the quarter ended December December: see month. 31, 1999, an increase of 7% compared with the year earlier period and also a record. Net income was down 28% to $16.8 million, and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of declined 25% to $.21 compared with $.28 last year. Dr. Floyd Floyd is a variant spelling of the Welsh name Lloyd, which means grey, and may refer to: Places
Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased , across all major geographical regions and markets. In particular, the U.S. and Asia-Pacific regions recorded strong growth for wireless infrastructure products. The U.S. wireless infrastructure business rebounded with significant orders for HELIAX(R) cable products, as well as base station antennas and equipment buildings. Asia-Pacific highlights included large orders from customers in China, Taiwan, Australia and Japan. Significant cable orders were received in Mexico and Argentina for wireless systems, due in large part to our distribution network in these key Latin American economies. &uot;We are very pleased with the record orders and continued sequential sales strength. Wireless infrastructure sales grew strongly, led by the U.S. and Asia-Pacific regions. The lack of large terrestrial Dealing with the earth. See terrestrial link. microwave projects this quarter caused weak sales to the fixed telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. network market. Orders for the broadcast/government market and wireless accessories markets increased nicely, although sales increases were modest. The product mix issues that depressed last quarter's earnings were improved this quarter. Although the market is still very price competitive, the organization has delivered record orders and sales and improving margins on a sequential quarters basis.&uot; Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. to be shipped over the next 12 months grew 72% to $188.5 million while total backlog grew 56% to $191.2 million. During the December 1999 quarter, 1.8 million shares of stock were repurchased. As of December 31, 1999 total outstanding shares were 80.5 million with 3.2 million shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. for repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. . During the quarter, we acquired Conifer conifer (kŏn`ĭfûr) [Lat.,=cone-bearing], tree or shrub of the order Coniferales, e.g., the pine, monkey-puzzle tree, cypress, and sequoia. Most conifers bear cones and most are evergreens, though a few, such as the larch, are deciduous. Corporation, a leading manufacturer of MMDS (Multichannel Multipoint Distribution Service or Microwave Multipoint Distribution Service) A digital wireless transmission system that works in the 2.2-2.4 GHz range. (Multichannel Multipoint Distribution Service
Multichannel multipoint distribution service, also known as MMDS or Wireless Cable ) subscriber equipment products. MMDS is an emerging microwave radio service that can provide broadband wireless See wireless broadband. access for highspeed data, voice and video communications, including Internet access See how to access the Internet. for residences and businesses. Earlier this month the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. type certified See certification. our Ultraflex two-way customer premise transmit/receive transverter, the first given to an MMDS transverter. In the September quarter, Andrew was awarded a multi-million dollar contract to supply LMDS (Local Multipoint Distribution Service) A digital wireless transmission system that works in the 28 GHz range in the U.S. and 24-40 GHz overseas. It requires line of sight between transmitter and receiving antenna, which can be from one to four miles apart (Local Multipoint Distribution Services LMDS is a broadband wireless access technology governed by the IEEE and is outlined by the 802 LAN/MAN Standards Committee through the efforts of the IEEE 802.16.1 Task Group. LMDS commonly operates on microwave frequencies across the 26GHz and 29GHz bands. ) hub antennas and coaxial co·ax·i·al adj. Having or mounted on a common axis. coaxial Adjective 1. Electronics (of a cable) transmitting by means of two concentric conductors separated by an insulator cable products. LMDS is an emerging millimeter One thousandth of a meter, or 1/25th of an inch. See metric system. wave service designed to provide high-speed Internet See broadband. access and other broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communications services. Our growing capabilities in MMDS and successes in LMDS give us a unique position to be successful in the exciting broadband fixed wireless market. Dr. English added, &uot;We're off to a good start to the year 2000, continuing the sequential order growth we've experienced over the last three quarters. The pace of business improved steadily throughout the December quarter, which I believe is evidence that our action plan is showing good progress. I am grateful to all the Andrew employees who are making this happen.&uot; Forward Looking Statements Some of the statements in this news release are forward looking statements and we caution our stockholders and others that these statements involve certain risks and uncertainties. Factors that may cause actual results to differ from expected results include, but are not limited to the effects of competitive products and pricing, economic and political conditions that may impact customers' ability to fund purchases of our products and services, the company's ability to achieve the costs savings anticipated from cost reduction programs, fluctuations in international exchange rates, the timing of cash payments and receipts, end use demands for wireless communication services, and other business factors. Investors should also review other risks and uncertainties discussed in company documents filed with the Securities and Exchange Commission. Andrew Corporation is a global supplier of communications systems equipment and services. Major markets are 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. -- which includes cellular, personal communications services See PCS. , and land mobile radio -- broadcast, and fixed telecommunications networks A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. . Andrew is an S& 500 company whose common stock trades on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (R) under the symbol: ANDW. For further information on Andrew products and services, including the text of this release, visit our Web site at http://www.andrew.com
UNAUDITED - PRELIMINARY
ANDREW CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended
December 31
1999 1998
-------- --------
Sales $233,568 218,573
Cost of product sold 157,524 139,041
-------- --------
Gross Profit 76,044 79,532
Operating Expenses
Research and development 9,646 5,631
Sales and administrative 41,489 38,915
-------- --------
51,135 44,546
Operating Income 24,909 34,986
Other
Interest expense 1,378 1,452
Interest income (385) (2,023)
Other (income) expense (738) 435
-------- --------
255 (136)
Income Before Tax 24,654 35,122
Income taxes 7,888 11,941
-------- --------
Net Income $ 16,766 $ 23,181
======== ========
Basic and Diluted Earnings per Share 0.21 0.28
======== ========
Average Basic Shares Outstanding 81,161 83,814
======== ========
Average Diluted Shares Outstanding 81,276 83,938
======== ========
Orders Entered 253,171 192,280
======== ========
Backlog 188,506 109,753
======== ========
Total Backlog 191,171 122,650
======== ========
Unaudited - Preliminary
ANDREW CORPORATION
CONSOLIDATED BALANCE SHEET
(In Thousands)
December 31 September 30
1999 1999
--------- ---------
ASSETS (Unaudited)
Current Assets
Cash and Cash Equivalents $ 13,795 $ 38,287
Accounts Receivable,
less allowances
(Dec 2,928 ; Sept $3,403; ) 214,462 200,068
Inventories
Finished Products 59,110 58,225
Materials and Work in Process 132,131 106,261
--------- ---------
191,241 164,486
Miscellaneous Current Assets 8,552 10,662
--------- ---------
Total Current Assets 428,050 413,503
Other Assets
Cost in excess of net assets
of businesses acquired, less
accumulated amortization
(Dec 5,437 ; Sept $4,654) 35,889 21,498
Investments in and
Advances to Affiliates 53,911 63,992
Other assets 10,950 6,297
Property, Plant, and Equipment
Land and land improvements 18,016 17,016
Buildings 91,359 83,850
Equipment 347,743 335,125
Allowances for Depreciation 283,500 275,191
--------- ---------
173,618 160,800
--------- ---------
TOTAL ASSETS $702,418 $666,090
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes Payable 36,927 3,053
Accounts Payable 51,827 43,105
Restructuring Reserve 11,291 12,128
Accrued expenses and other liabilities 23,091 21,212
Compensation and related expenses 15,456 21,947
Income taxes 3,290 0
Current portion of long-term debt 8,337 8,205
--------- ---------
Total Current Liabilities 150,219 109,650
Deferred Liabilities 19,683 18,602
Long-term debt, less current portion 48,300 48,760
Minority Interest 7,878 5,068
STOCKHOLDERS' EQUITY
Common stock (par value, $.01 a share:
400,000,000 shares authorized;
102,718,210 shares issued,
including treasury) 1,027 1,027
Additional paid-in capital 56,253 55,802
Retained earnings 698,296 681,530
Accumulated other
comprehensive income (23,330) (21,755)
Treasury stock, at cost
(22,208,759 shares in Dec;
20,572,072 shares in Sept ) (255,908) (232,594)
--------- ---------
476,338 484,010
--------- ----------
TOTAL LIABILITIES AND EQUITY $702,418 $666,090
========= ==========
Unaudited - Preliminary
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Three Months Ended
December 31
1999 1998
---------- ----------
Cash Flows from Operations
Net Income $16,766 $23,181
Adjustments to Net Income
Restructuring Costs (432) 0
Depreciation and amortization 10,173 8,777
(Increase) in accounts receivable (14,894) (5,615)
(Increase) in inventories (24,639) (2,896)
Decrease (increase) in
prepaid and other assets 1,836 (1,741)
Decrease (increase) in
receivables from affiliates 18 0
Increase (decrease) in
accounts payable
and other liabilities 7,931 (5,320)
Other 459 172
---------- ----------
Net Cash From Operations (2,782) 16,558
Investing Activities
Capital Expenditures (18,745) (13,869)
Acquisition of businesses,
net of cash received (14,929) 0
Investments in and advances
to affiliates 2,646 (1,835)
Proceeds from sale of
property, plant
and equipment 69 578
---------- ----------
Net Cash Used in Investing Activities (30,959) (15,126)
Financing Activities
Long-term (payments) borrowings - net (972) 3,153
Short-term borrowings (payments) -net 33,065 (3,622)
Payments to acquire treasury stock (24,630) (36,249)
Stock purchase and option plans 1,784 883
---------- ----------
Net Cash Used in Financing Activities 9,247 (35,835)
Effect of exchange rate changes on cash 2 (646)
---------- ----------
Decrease for the Period (24,492) (35,049)
Cash and equivalents at beginning
of period 38,287 78,395
---------- ----------
Cash and equivalents at end of
period $ 13,795 $ 43,346
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