California Micro Devices Reports Reduced Sales and Earnings, Increased Orders for Third Fiscal Quarter.MILPITAS Milpitas (mĭl'pē`təs), city (1990 pop. 50,686), Santa Clara co., W Calif., a suburb of San Jose, southeast of San Francisco; inc. 1954. Manufactures include computers and paint. , Calif.--(BUSINESS WIRE)--Jan. 22, 1997--California Micro Devices Corp. ("CMD CMD cerebromacular degeneration. ") (NASDAQ/NMS:CAMD CAMD Center for Advanced Microstructures and Devices CAMD Clean Air Markets Division (US EPA) CAMD Computer-Assisted Molecular Design CAMD Chemical Agent and Munitions Disposal CAMD Carl Asmis Memorial Dressage Association ) today reported net income of $79,000, or $0.01 per share, on revenues of $7.6 million, for the quarter ended December December: see month. 31, 1996, the third quarter of its fiscal year 1997. This compares with net income of $2,681,000, or $0.24 per share, on revenues of $10.6 million, for the quarter ended December 31, 1995, which included a one time gain of $1.6 million, or $0.14 per share, from the sale of CMD's interest in Cell Access. Average share and share equivalents outstanding were 10,444,000 compared to 10,946,000 for the three months ended December 31, 1995. For the nine months ended December 31, 1996, the Company reported net income of $551,000, or $0.05 per share, on revenues of $25.3 million. This compares with net income of $4,033,000, or $0.38 per share, (including the Cell Access gain) for the nine months ended December 31, 1995, on revenues of $28.9 million. Average share and share equivalents outstanding were 10,791,000 compared to 10,553,000 for the nine months ended December 31, 1995. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Jeffrey Kalb Kalb , Johann Known as "Baron de Kalb." 1721-1780. German general in the American Revolution who wintered with George Washington at Valley Forge (1777-1778) and was mortally wounded at the Battle of Camden (1780). , CMD's president and chief executive officer, "This was a challenging quarter which saw significant changes in the mix and geography of product shipments compared to the prior quarter, including decreased sales into the Taiwan personal computer market, partly offset by increased sales to the US telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market. The Company also reported a book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can of 1.1 to 1 for the third quarter ended December 31, 1996. Our orders increased 22% sequentially from the second quarter to the third quarter. We increased our 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. for the first time this fiscal year. However, compared to a year ago, we still see short lead times from our customers and depend more on new orders for current quarter shipments than we did then. This plus the changing mix continues to make forecasting and inventory management difficult." Kalb noted that "Margins declined by about 5 percentage points from the previous quarter ended September 30, 1996, mostly caused by lower factory utilization and a lower proportion of sales of the Company's higher margin thin film products. The net decrease in sales had an unfavorable impact on factory efficiencies, which was further compounded by a power outage Noun 1. power outage - equipment failure resulting when the supply of power fails; "the ice storm caused a power outage" power failure equipment failure, breakdown - a cessation of normal operation; "there was a power breakdown" in our Tempe factory in December that hampered production for about a week. The decline in margin was largely offset by reduced operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and, with some small one time gains, we realized a small profit for the quarter." According to Kalb, "Compared to both the year ago quarter and the nine months ended December 31, 1995, margins are down about 10 percentage points, a trend that began earlier this year with a significant shift in product mix. There has also been significant pricing pressure in some markets due to the significant price reductions being absorbed by the semiconductor and passives industries. This margin decline has been partially offset by reduced operating expenses, especially in the area of general and administrative expense." Kalb continued, "As I have said before, while we continue to control costs, we are not neglecting our future. We continue to invest in R&D. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. R&D expenditures increased 28%, to $3.2 million compared to $2.5 million a year ago. We continue to invest in our new P/Active(TM) family of termination and filtering products, as well as some new potentially high volume semiconductor devices. Additionally, we have continued to upgrade our manufacturing processes, installing new, efficient equipment to improve yields and productivity. This will have a very beneficial impact as the business begins to turn around." In closing, Kalb noted that "This quarter we have also made real progress towards resolving the legal issues that have plagued our Company for the last two years. The new proposed settlement of shareholder class action lawsuits class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was tentatively ten·ta·tive adj. 1. Not fully worked out, concluded, or agreed on; provisional: tentative plans. 2. Uncertain; hesitant. approved by the Court this quarter and is reflected in the December 31, 1996 balance sheet. This had no income statement impact but resulted in a reduction of both cash and equity. We have also classified as restricted cash the $2.0 million of cash that will be put in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. as a guarantee against the $11.50 Contingent Value Right which is part of the new settlement." Shares outstanding at December 31, 1995 included 1,500,000 shares issued in 1995 and held in trust in connection with a proposed, but not approved, February 1995 settlement of shareholder class action lawsuits. At December 31, 1996 the 1,500,000 shares have been replaced by 608,696 shares as required by the new settlement of these lawsuits. This settlement was tentatively approved by the Court on December 16, 1996. Therefore the calculation of average shares outstanding reflects the reduction in shares outstanding implicit in Adj. 1. implicit in - in the nature of something though not readily apparent; "shortcomings inherent in our approach"; "an underlying meaning" underlying, inherent this settlement starting December 16, and had minimal impact on the overall calculation. The next quarter will reflect the full impact of this share reduction. A final hearing on the settlement is scheduled for March 6, 1997. During the quarter the Company also settled other major legal matters which had been outstanding since 1993. The elimination of all of this legal activity should not only reduce the Company's G&A expense by over $200,000 per quarter, but will eliminate a significant drain on management resources. 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. involve a number of risks and uncertainties including, but not limited to, product demand, pricing, market acceptance, risk of dependence on third party suppliers, intellectual property rights and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , risks in product and technology development and other risk factors detailed in CMD's Securities and Exchange Commission filings. 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 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. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Due to the risk factors discussed herein, the Company's future actual results could differ materially from those discussed above. Headquartered in Milpitas, California Milpitas (IPA pronunciation: mɪlpitʌs; inhabitants are called 'Milpitans') is a city in Santa Clara County, California. It is located with San Jose to its south and Fremont to its north, at the eastern end of Highway 237 and generally between Interstate freeways 680 and , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). 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. -0-
CALIFORNIA MICRO DEVICES CORPORATION
STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1996 1995 1996 1995
Revenues:
Net product sales $7,231 $10,252 $24,264 $27,918
Technology related revenues 350 380 1,030 990
Total revenues 7,581 10,632 25,294 28,908
Cost and expenses:
Cost of sales 4,955 5,912 16,100 15,979
Research and development 986 822 3,187 2,483
Selling, marketing and
administrative 1,796 2,837 5,957 8,039
Total costs and expenses 7,737 9,751 25,244 26,501
Operating income (loss) (156) 1,061 50 2,407
Other (income) expense, net (235) (1,620) (501) (1,626)
Income before income taxes 79 2,681 551 4,033
Income taxes -- -- -- --
Net income $79 $2,681 $551 $4,033
Net income per share $0.01 $0.24 $0.05 $0.38
Weighted average common
shares and share
equivalents outstanding 10,444 10,946 10,791 10,553
CALIFORNIA MICRO DEVICES CORPORATION
BALANCE SHEET
(Amounts in thousands, except share data)
December 31, March 31,
1996 1996
(Unaudited)
ASSETS:
Current assets:
Cash and short-term securities $8,212 $22,150
Accounts receivable, less allowance for
doubtful accounts of $681 and $960 3,450 4,500
Inventories 8,394 6,940
Other assets 690 585
Total current assets 20,746 34,175
Property, plant & equipment, net 14,450 9,314
Restricted cash 3,223 905
Other long term assets 425 534
Total assets $38,844 $44,928
LIABILITIES & SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $3,948 $2,832
Accrued salaries and benefits 997 1,250
Other accrued liabilities 1,821 4,279
Deferred margin on shipments to distributors 664 1,039
Current maturities of long-term debt and capital
lease obligations 488 1,282
Total current liabilities 7,918 10,682
Long-term debt, less current maturities 7,490 7,490
Capital lease obligations, less current maturities 79 299
Deferred income -- 107
Total liabilities 15,487 18,578
Shareholders' equity:
Common stock -- no par value; authorized
25,000,000; issued and outstanding
9,720,159 shares 51,876 55,442
Retained earnings (28,519) (29,092)
Total shareholders' equity 23,357 26,350
Total liabilities and shareholders' equity $38,844 $44,928
CONTACT: California Micro Devices, Milpitas Jeffrey Kalb, 408/934-3106 (Pres. & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ) John Trewin, 408/934-3103 (VP & CFO See Chief Financial Officer. ) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion