FIRM BACK ON NASDAQ LISTING NINE-WEEK HOLD ON CAL AMP ENDS.

Byline: Jesse Hiestand Staff Writer

CAMARILLO - California Amplifier Inc. resumed trading Thursday after a nine-week halt for the Nasdaq exchange to investigate bookkeeping improprieties.

The stock lost 3 cents to close at $5, which analysts said reflected investors' continued confidence in the company, a manufacturer of microwave amplifiers for wireless communications.

``What we've learned since the stock was held is the company is generating cash and revenue and earnings,'' said Matthew Robison, a San Francisco-based analyst for Ferris, Baker Watts Inc. ``It looks to be on pretty solid footing.''

Fourth-quarter earnings, announced a week ago, showed a net income of $400,000, or 3 cents per share, on sales of $26.5 million. The company earned $5.2 million, on $120 million in sales, in fiscal 2001.

The stock was going to be delisted in early May when California Amplifier appealed the ruling, prompting a Nasdaq hearing that eventually cleared it to resume trading.

Chief Executive Fred Sturm believes the worst is over.

``We know the events leading to the halting of the stock and restatement of earnings were disturbing to the company's many valuable employees and stockholders,'' Sturm said. ``We hope that this event does not overshadow the many operational product developments and market accomplishments made in fiscal year 2001.''

On March 30, the company announced its controller had resigned abruptly after revealing that he overstated fiscal 2000 earnings by as much as $2.2 million.

As a result, the Nasdaq halted trading of the stock.

An audit by the company found the controller had reduced expenses through improper adjustments and irregularities involving the consolidation of its Hong Kong procurement subsidiary.

In all, the company had to restate earnings from Feb. 26, 2000, through three periods of fiscal 2001 ending Nov. 25. It reduced net earnings by $5.5 million, officials said.

Up to 20 lawsuits have been filed as a result of the irregularities.

The company expects those actions will be consolidated and a lead plaintiffs' attorney appointed, after which California Amplifier will move to have all claims dismissed.

``We intend to defend the actions vigorously,'' Sturm said.

As part of the investigation, California Amplifier presented testimony at a Nasdaq hearing May 25, offering what it said were satisfactory answers to questions raised by the Listing Qualifications Panel.

The panel concluded that the stock could resume trading Thursday, with the slight modification that its ticker symbol be changed from CAMPE to CAMP.

California Amplifier does not expect the restatement of earnings to impact its business going forward.

Robison said earnings for the fiscal first quarter of 2002 were already expected to be lower because of slow growth in its satellite reception business. Also, new opportunities in the wireless transmission of broadband Internet were being hampered by some operators waiting for the next generation of equipment.