California Micro Devices Expects Flat Sales for Second Fiscal Quarter and Profits Somewhat Below Last Quarter.

MILPITAS, Calif.--(BUSINESS WIRE)--Sept. 22, 1997--California Micro Devices Corporation (NASDAQ NMS:CAMD) (CMD) today provided advance guidance with regards to the quarter ending September 30, 1997.

According to Jeffrey Kalb, President and Chief Executive Officer, "Although the revenue should be pretty much in line with expectations, and orders for the second quarter ending September 30, 1997 are expected to be about 20% higher than the same quarter last year, we have not seen the sequential dollar growth in orders that we had anticipated.

"It looks like orders will be flat compared to the June 30, 1997 quarter. In this quarter, we are also seeing a shift in mix to a higher percentage of lower margin product during the quarter. Overall, we expect a sequential quarterly increase in the quantity of products shipped, as we transition to a higher mix of standard, high volume lower margin products, in line with the Company's game plan.

"For example, we have begun shipments of our aggressively priced PAC 1284 filtration and ESD protection device for parallel ports in computers and peripheral products, but need to be at higher overall volumes to achieve our margin plans. We expect these factors will adversely impact margins and earnings, and may result in a small loss for the September 30, 1997 quarter compared to financial expectations of a small gain."

According to Kalb, "The pace of design wins is very encouraging and we have seen widespread interest in the PAC 1284 parallel port filter as well as other new products. And, we continue to invest in R&D and in strengthening our marketing and sales capabilities to support our momentum in design wins.

"However, the lag between design wins and revenues has been longer than we expected as some major customers' production schedules have slipped three to four months from originally scheduled start dates."

Statements contained herein which are not historical facts are forward-looking statements. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Due to the risk factors discussed in CMD's Securities and Exchange Commission filings, the Company's future actual results could differ materially from those discussed above.

Headquartered in Milpitas, California, California Micro Devices (CMD) designs, manufactures and markets integrated thin-film, silicon-based termination and filtering passive components and active electronic circuitry.

CMD's products target the requirements of computer, networking and communication-based customers for smaller, densely integrated devices that operate at higher frequencies with superior performance and functionality.

CONTACT: California Micro Devices

Jeffrey Kalb, 408/934-3106 (President & CEO)

John Trewin, 408/934-3103 (Vice President & CFO)

Scott Hover-Smoot, 408/934-3182 (General Counsel)