Celeritek Reports Fourth Quarter Results
Announces More Than $47 Million In New Orders
Santa Clara, CA., Celeritek (Nasdaq: CLTK), a manufacturer of GaAs semiconductor components and GaAs-based subsystems for the broadband wireless communications market, today reported results for the fourth quarter of its fiscal year 2000.
For the quarter ended March 31, 2000, Celeritek reported revenues of $15,470,000 compared with revenues of $10,099,000 for the same quarter in fiscal 1999, an increase of 53%. The company reported net income of $92,000 or $0.01 basic and diluted earnings per share, compared with a net loss of $1,962,000 or $0.27 per share loss for the same period a year ago.
For the fiscal 2000 year, Celeritek reported revenues of $48.2 million compared to $41.1 million in fiscal 1999, an increase of 17%. The company reported a net loss of $6,824,000 or $0.88 per share compared to a loss of $7,538,000 of $1.04 per share in fiscal 1999.
"We are pleased with the continued revenue growth and strong bookings we had this quarter. Celeritek received almost $48 million in new orders this quarter, a company record," said Tamer Husseini, president and chief executive officer. "In January we announced $8.5 million in orders from a major US handset manufacturer for power amplifiers for use in CDMA handsets. We received an additional $10.0 million in orders from this customer in the fourth quarter. All of these orders are currently scheduled to ship in calendar 2000. An indicator of the growth in our semiconductor business is the fact that in fiscal 2000 our largest customer was a semiconductor customer. We also received significant orders for our GaAs semiconductor components used in wireless infrastructure from Metricom and Ericsson."
"In addition to the growth in our semiconductor business, we received significant orders from our point-to-point radio customers, P-Com and Digital Microwave and continue to see growth in our business with Gilat Network Systems," he continued. "We have invested heavily in our factory and in our relationships with our subcontractors in an effort to meet increased customer demand," he added. Husseini said the company had received nine design wins in the quarter for its TrueTriangle family of InGaP-HBT modules bringing to sixteen the total number of design wins for these new products. The TrueTriangle products are low voltage (3.0V) linear efficient power amplifiers that provide handset manufacturers with a low cost, space efficient solution.
Semiconductor net sales in the fourth quarter of fiscal 2000 increased 120% over the comparable quarter in the prior year, primarily due to increased sales of power amplifiers to the handset market. The growth in net sales in the commercial subsystem area demonstrated the strong recovery in the point-to-point radio market with net sales in the fourth quarter of fiscal 2000 up 158% from net sales in fourth quarter fiscal 1999. Defense net sales declined 74% quarter to quarter.
The increased sales levels have improved the company s gross margin from 14% in the fourth quarter of fiscal 1999 to 27% in the fourth quarter of fiscal 2000 and have allowed the company to achieve a small profit.
Celeritek designs and manufactures GaAs semiconductor components and GaAs-based subsystems used in the transmission of voice, video and data traffic over wireless communications networks. Its GaAs semiconductor components and subsystems are designed to facilitate broadband voice and data transmission in mobile handsets and wireless communications infrastructures. Its GaAs semiconductor components primarily consist of transmit solutions, including power amplifiers for cellular and PCS handsets. These products are focused on the high growth CDMA and emerging WCDMA wireless market. Celeritek provides its GaAs-based subsystems to leading companies in the fixed broadband terrestrial and satellite wireless access markets. These products are designed to enable high bandwidth broadband communications. The company s products are used worldwide by leading manufacturers of wireless communications systems.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements represent the company s expectations or beliefs concerning future events and include statements, among others, regarding the timing of shipments, the long-term potential of the market, levels of profitability, introduction of new products and level of production capacity. Actual results could differ materially from those projected in the forward-looking statements as a result of known and unknown risk factors and uncertainties. Such factors may include, but are not necessarily limited to, the timing, cancellations or delay of customer orders including those in the backlog; continued achievement of design wins; the mix of products sold; changes in manufacturing capacities and variation in the utilization of this capacity; market acceptance of the company s and customers products; variation in manufacturing yields and other competitive factors. Reference is made to the discussion of risk factors detailed in the company s filings with the Securities and Exchange Commission, including its reports on Forms 10-K and 10-Q.
Contact:
Peggy Smith of Celeritek, 408-986-5060
