Celeritek's revenues continue on downward slide
Celeritek recorded a net loss for the first quarter of 2003 of $4.5 million or $0.37 per share, compared with a net loss of $2.8 million or $0.23 per share for the same period a year ago.
Semiconductor revenues were $3.0 million in the first quarter of 2003, or 37% of total revenues. This compares to $5.5 million (52% of total) in the prior quarter and $6.7 million in the year-ago period. The decrease in the March 2003 quarter is due to the previously announced decision by Motorola, a major customer, to discontinue its strategy of dual-sourcing power amplifier modules for handset applications. Celeritek s sales to other semiconductor customers remained steady compared to previous quarters.
Subsystem revenues were $5.1 million in the first quarter of 2003, compared to $5.0 million in the prior quarter and $6.5 million in the year-ago period.
For Celeritek s fiscal 2003, ending March 31, 2003, revenues were $49.4 million, compared with revenues in fiscal 2002 of $57.1 million. The net loss for the year was $17.0 million or $1.39 per share, compared with $22.6 million or $1.87 per share for fiscal 2002.
The net loss for the year includes $4.6 million related to Celeritek s acquisition of Tavanza and special charges of $2.8 million for severance costs, abandoned fixed assets and equipment leases. As part of Celeritek s continued focus on aggressive cost controls, the company reduced overhead expenses by $4.4 million in fiscal 2003, compared to fiscal 2002.
Tamer Husseini, president and chief executive officer of Celeritek, said, "This quarter underscores the power of our Tavanza acquisition, which combines leading edge technology with the manufacturing and sales support to transform innovation into revenue opportunities.
"Our three new products introduced in March add new features and functionality, while at the same time addressing a broader customer base and significantly reducing Celeritek s manufacturing costs," said Husseini. The company has sampled its 3 x 3 mm power amplifier modules to a number of customers and is getting strong positive feedback that Husseini believes will lead to market share gains and revenue growth late this year.
"As part of our strategy to market standard products to a wider range of customers in both the defense and wireless markets, we also recently announced a global distribution partnership with Richardson Electronics," continued Husseini. "This is yet another avenue that we believe will help Celeritek deliver year-over-year revenue growth and value for our shareholders."
The company currently expects revenues to be approximately $6.5 million to $7.5 million in the June 2003 quarter with gross margins of approximately 7% to 9%.
