+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Celeritek Updates Estimates for Fourth Quarter 2001 and Outlook for First Quarter 2002

Source: Celeritek, Inc.

Santa Clara, CA. Celeritek, Inc. (Nasdaq: CLTK), a designer and manufacturer of GaAs semiconductor components and GaAs-based subsystems for broadband transmission of voice, video and data over wireless networks, today revised its estimates for the fourth quarter of fiscal year 2001, which ends on March 31, 2001, and commented on the first quarter of fiscal year 2002.

Based on continuing market weakness and a slower than anticipated ramp in volume production of several of its new products, Celeritek is now estimating that revenues for the fourth quarter of fiscal year 2001 and for the first quarter of fiscal year 2002 will be approximately $21 million in each quarter, resulting in a small loss in each quarter. For fiscal year 2001, Celeritek currently estimates that revenues will be approximately $88 million.

Tamer Husseini, president and chief executive officer commented, "We have seen a weakening in demand from customers in our markets demonstrated by several order cancellations and a lower than anticipated order rate. This market softness will impact both our fourth quarter of fiscal 2001 and our projections for the first quarter of fiscal 2002."

In particular, Celeritek had a $9 million contract to produce integrated circuits for Metricom for their wireless infrastructure product. The remaining balance on this order of $2 million, which was scheduled for shipment in the fourth quarter, has been cancelled. Celeritek did not have any Metricom shipments beyond the fourth quarter in its plans.

"We have also experienced some unanticipated production delays with our subcontract manufacturers in connection with moving to volume production for both the modules for CDMA phones and the transceivers for our satellite program. We have worked closely with our suppliers to identify and understand these problems, and we believe they will be resolved in the next few weeks," added Mr. Husseini.

Celeritek remains enthusiastic about the long-term growth potential of the broadband markets and will continue to invest in new products and capabilities. "In the subsystem wireless group, we have significant orders for products that are in development for both the satellite and radio markets. Customer demand for our InGaP HBT modules remains strong, and we believe we are on the right handset platforms. Additionally, we have a number of design wins for both handset and fiber optic applications that should develop into production contracts this year resulting in an improved growth rate in the second half of 2001," commented Mr. Husseini.

Celeritek management will conduct a conference call today, at 1:45 PST. The call can be accessed by dialing 212-346-7450. The reservation number is 18071724. A live web cast of the call will be available at our web page, www.celeritek.com. A recording of the call will also be available on the web page or by dialing the replay number 800-633-8284 or 858-812-6440 with the reservation code 18071724.

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. Celeritek 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 Exchange Act of 1934. These forward-looking statements represent Celeritek s expectations or beliefs concerning future events and include statements, among others, regarding Celeritek s expectations and beliefs concerning: continuing market weakness; a slower-than-anticipated ramp in volume production of modules for CDMA phones and transceivers for satellites; revised revenue estimates of $21 million for both the fourth quarter of fiscal 2001 and the first quarter of fiscal 2002, and $88 million for fiscal year 2001; projected losses in the fourth quarter of fiscal 2001 and the first quarter of fiscal 2002; the impact of the market softness on the fourth quarter of fiscal 2001 and the first quarter of fiscal 2002; the resolution within the next few weeks of the production issues with subcontractors concerning modules for CDMA phones and transceivers for satellites; long-term growth potential in the broadband markets; continued investment in new products and capabilities; strong demand for InGaP HBT modules; whether Celeritek is engaged in the right handset platforms; and whether design wins will develop into production contracts for handset and fiber optic applications, resulting in improved growth rate in the second half of 2001. 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, further cancellations or delay of customer orders; Celeritek s ability to deliver production orders on target and continued achievement of design wins; the ability to translate design wins into production contracts; Celeritek s reliance on third parties to manufacture adequate levels of product on a timely and consistent basis; Celeritek s own manufacturing capacities and variation in the utilization of this capacity; Celeritek s reliance on third parties to increase module assembly and test capacity for subsystem products; adjustments in accounting for the fourth quarter of fiscal 2001; the potential slow down in sales of goods incorporating Celeritek s products; market acceptance of Celeritek s and its customers products; variation in manufacturing yields and other competitive factors. Reference is made to the discussion of risk factors detailed in Celeritek s filings with the Securities and Exchange Commission, including its reports on Forms 10-K and 10-Q.

Contact: Peggy Smith of Celeritek, Inc. Tel: 408-986-5060

 

Peggy Smith of Celeritek, Inc.
Tel: 408-986-5060
 
Web site: http://www.celeritek.com
×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: