Celeritek Reports First Quarter Results
Source: Celeritek, Inc.
SANTA CLARA, Calif. Celeritek, Inc., a manufacturer of GaAs semiconductor components and GaAs-based subsystems for the broadband wireless communications market, today reported financial results for the first quarter of fiscal 2002.
For the quarter ended June 30, 2001, Celeritek reported net sales of $14.0 million, compared to net sales of $19.7 million for the same period a year ago. The net loss for the quarter was $5.1 million, or $0.43 per share, compared to net income of $701,000, or $0.07 per share, in the first fiscal quarter of 2001.
Net sales of semiconductor products were $8.1 million in the first quarter of fiscal 2002, compared to $8.7 million in the fourth quarter of fiscal 2001. As compared to the fourth quarter of fiscal 2001, sales of semiconductor products into handset applications increased 59%, and sales of semiconductor products into infrastructure applications decreased 50%.
Subsystem sales decreased to $5.9 million in the first quarter of fiscal 2002 from $9.3 million in the fourth quarter of fiscal 2001 because of continued weakness in the broadband wireless infrastructure markets. Sales to defense customers were flat quarter-to-quarter.
We are pleased with the progress we have made on yield improvements related to our new power amplifier modules. We shipped over five times the modules in the June quarter than we shipped in the March quarter as our customers continue to transition from power amplifier IC s to modules, commented Tamer Husseini, president and chief executive officer. ``Modules represent 37% of this quarter s total shipments. This accomplishment demonstrates our ability to design and produce a product with leading edge technology on a schedule that meets our customers needs.
We continue to experience softness in orders related to the conditions in the wireless infrastructure markets, continued Mr. Husseini. To address the changes in the market, we have focused our design talent on developing new semiconductor products. We continue to focus on technology improvements to our power amplifier modules and are developing additional products to address the opportunities in the fiber optic and millimeter wave markets. We are positioning ourselves to be in a strong technology leadership position as market conditions improve.
Celeritek reported a one-time charge of approximately $300,000 in severance expense for employees terminated in the first quarter of 2002 and additional inventory reserves of approximately $850,000 for obsolete inventory. Ending cash and investment balances of $100 million reflect cash usage of $7.5 million with $4.7 million of capital equipment expenditures.
Based on current market conditions, Celeritek expects revenue for the next quarter to remain in the $14 million range, with a slight improvement in gross margin and flat operating expenses.
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 Act of 1934. These forward-looking statements represent the Celeritek s expectations or beliefs concerning future events and include statements, among others, regarding: Celeritek s continuing focus on technology improvements to power amplifier modules and the development of additional products to address the opportunities in the fiber optic market; the positioning of the Company to be in a strong technology leadership position as market conditions improve; and Celeritek s expectation that revenues in the next quarter will remain in the $14 million range with a slight improvement in gross margin and flat operating expenses. 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 Company s ability to timely introduce new products; the timing, cancellations or delay of customer orders; continued acceptance of InGaP HBT modules; the growth of the fiber optic market; 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 the reports on Forms 10-K and 10-Q.
