Printer Friendly


LOWELL, MA--(BUSINESS WIRE)--February 10, 1995--M/A-COM, Inc. (NYSE:MAI) today reported a net loss from operations for its first quarter ended December 31, 1994 of $5,065,000 or $0.19 per share, compared with net income from operations of $770,000 or $0.03 per share for the first quarter of the prior year. At $87,296,000, new order levels for the quarter were up 34% over fiscal 1994's first quarter new order levels of $64,998,000, with new orders for commercial products accounting for most of the growth. Sales for the first quarter were $81,609,000, up slightly from sales levels of $79,120,000 for the same period last year. The above first quarter 1994 net income from operations is prior to the cumulative effect of an accounting change for income taxes (SFAS 109).

The first quarter loss is primarily attributable to results within the Company's Burlington semiconductor operations, which was consolidated into the Company's largest division during the fourth quarter of 1994. The rest of the Company's operations were marginally profitable in the first quarter, which is historically the Company's most difficult quarter.

Commenting on the performance of the Burlington semiconductor operations, M/A-COM Chairman and Chief Executive Officer Thomas A. Vanderslice said, "During the latter half of 1994, the Company's management became concerned about emerging operational trends impacting the Burlington semiconductor operations, which services highly competitive markets characterized by steep selling price reductions. In the fourth quarter of 1994, management decided that significant actions were required to address the operation's performance and direction. Those actions have been taken." As previously announced, the Company consolidated the Burlington semiconductor operations into the Company's Microelectronics Division. At that time, a new management team consisting of four experienced and proven Company managers was assigned to the Burlington semiconductor operations.

Leading to the operating loss at the Burlington semiconductor operations were two key factors. First, though new orders for the operations were at levels consistent with historic patterns, shipments for the quarter were lower than historic averages, in large part due to organizational transition issues. Second, inventory reductions occurring in that operations during the quarter resulted in under utilization of the wafer fabrication area and substantial unabsorbed costs.

Dr. Vanderslice continued, "The recent actions taken at the Burlington semiconductor operations, coupled with a more appropriate strategic focus, are expected to produce significant operational improvements in that unit in the coming quarters. Similarly, as this year progresses the overall financial performance of the Company is expected to improve.

"The Company's other operations are all focused on growth, particularly the Microelectronics Division, the Company's largest, which is experiencing strong growth in its Integrated Circuit Business Unit. The quarter's new orders level, up more than 34% over the prior year's first quarter, continues the positive evidence of customer enthusiasm for M/A-COM's products and technology."

During the first quarter, new business from commercial sources made up 62% of the Company's new orders, while U.S. Department of Defense-related business accounted for 16% and other government-related business accounted for 22% of the Company's new orders. Commercial business was up 64% from that of the first quarter of fiscal 1994.

M/A-COM, Inc. is a leading supplier to the wireless data and telecommunications industries of radio frequency, microwave and millimeter wave semiconductors, integrated circuits and components. The Company's largest market is the global commercial market, which includes wireless voice and data communication and automotive sensor applications.
 M/A-COM, Inc. and Subsidiaries
 Condensed Consolidated Statement of Operations
 (In thousands, except per share amounts)

 Three Months Ended
 December 31, January 1,
 1994 1994

Net sales $ 81,609 $ 79,120
Income (loss) before
 income taxes and
 cumulative effect ($ 4,565) $ 1,100
Income tax provision 500 330
Income (loss) before
 cumulative effect (5,065) 770
Cumulative effect of
 accounting change-(a) - 3,300
Net income (loss) ($ 5,065) $ 4,070
Shares used in income (loss)
 per share calculation 26,002 25,808

Income (loss) per share:
 Income (loss) before
 cumulative effect ($0.19) $0.03
 Cumulative effect of
 accounting change-(a) - 0.13
 Net income (loss) per share ($0.19) $0.16
New orders $87,296 $64,998
Backlog $205,828 $199,375

-0- (a)-Cumulative effect of a change in accounting for income taxes (SFAS 109).

CONTACT: M/A-COM Inc., Lowell

Victoria B. Dillon, 508-656-2515
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Feb 10, 1995
Previous Article:Evans Systems announces record quarterly revenues.
Next Article:ProNet continues growth strategy -- announces two new acquisitions and signs $125 million credit facility.

Related Articles
Acom Computer Adds Post-Processing Equipment to Its Secure Check-Disbursement Total Solution.
ACOM Selects Harmonic for Major Launch of Digital Television Service in Brazil.
HTE and ACOM Solutions Form Alliance.
Newly Enhanced Modular Architecture Expands Capabilities and Performance of ACOM's EZPrint/400 Electronic Forms, Checks and Labels Solution.
ACOM Payment Management/Document Output Solutions Achieve IBM ServerProven Status; Customers Gain Price Breaks for ACOM ``EZ'' Software on IBM...
ACOM, Peking University to Co-found Financial Information Research Center.
ACOM Announces EZContentManager -- Affordable, Scalable Web-Based Solution for Enterprise Content Management.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters