Alpha Reports Record Fiscal Year 2001 and Provides Business Outlook
Share from $0.42 Per Share a Year Ago; Company Meets Revenue and Exceeds EPS Guidance for Fourth Quarter
Alpha Industries, Inc. (Nasdaq: AHAA) today reported record revenue and net income for the fiscal year ended April 1, 2001. For the fourth quarter of fiscal 2001, Alpha met the revenue guidance and exceeded the earnings per share guidance the Company provided to investors in its mid-quarter update on March 7.
Net sales for the fourth quarter of fiscal 2001 were $54.0 million, a decline of 7% from $57.8 million for the same period one year earlier and 31% sequentially. Net income for the 2001 fourth quarter was $3.4 million, or $0.08 per diluted share, compared with $4.9 million, or $0.11 per diluted share, for the fourth quarter of fiscal 2000.
For the 12 months ended April 1, 2001, Alpha's net sales increased 46% to $271.6 million, from $186.4 million for fiscal year 2000. Net income totaled $33.4 million, or $0.75 per diluted share, for full-year 2001, compared with net income of $18.0 million, or $0.42 per diluted share, in fiscal 2000. Alpha ended fiscal 2001 with $153.8 million in cash, cash equivalents and short-term investments, up from $146.6 million one year earlier.
"We enjoyed 46% year-over-year revenue growth and an 86% increase in net income for fiscal 2001, despite the economic and global inventory issues that hampered our fourth quarter," said Alpha President and CEO David Aldrich. "During the year we continued to diversify our wireless handset customer base, expanded our broadband business to more than 20% of sales and launched our new Alpha Integration Platform to capitalize on our product breadth and technology expertise.
"However, as we moved through our fourth quarter, excess inventory and market softness affected both the wireless and broadband markets. As a result, Alpha experienced dramatically reduced bookings as OEMs worked down excess component inventory. During this lull in the global market, we cut costs across a number of operating functions while maintaining our aggressive product development efforts. We expect to reap significant benefits from these R&D initiatives when the wireless and broadband sectors rebound."
Fourth-quarter Highlights
Alpha's highlights during the fourth quarter of fiscal 2001 include:
New HBT Power Amplifiers: Alpha introduced the world's first tri-band power amplifier module using InGaP HBT technology. Production is slated for later in fiscal year 2002.
GPRS Components: Alpha received multiple design wins on GPRS platforms with its largest customer.
GaAs Switch/Filter Module Launch: Leveraging its leadership in the GaAs switch market, Alpha introduced a new GaAs switch/filter product line. By integrating passive and filter functions in a single module, these products dramatically reduce both design and manufacturing lead times for OEMs, and are being sampled by several customers.
Mobile Phone Leader Selects Alpha's GaAs ICs: Alpha announced that the world's largest manufacturer of mobile phones had selected the Company's GaAs integrated circuits, digital attenuators and passive products for use in a new family of broadband applications.
Vector Modulator: Alpha also introduced its phase shifters and next-generation VM series of vector modulators, an eight-chip solution designed to improve the linear performance of 2.5G and 3G infrastructure.
"We continued to achieve the milestones on our aggressive product development roadmap during the fourth quarter," Aldrich said. "The introduction and sampling of our switch/filter modules, and the rollout of our new vector modulator and power amplifier modules, are representative of the emphasis we have placed on existing and emerging market opportunities."
Business Outlook
"OEMs have continued to reduce their product build plans as they work down excess handset inventory," Aldrich said. "Consequently, for the June quarter we expect revenues in the range of $32 million to $35 million, and a net loss per share between $(0.08) and $(0.10). Based on conversations with customers, we believe the industry should hit bottom in the June quarter with respect to the impact of excess inventories in the supply chain.
"With new phone models slated to reach the market this fall, we believe that supply equilibrium should be achieved in the second half of calendar 2001. Looking farther ahead, we see exciting opportunities and rising demand sparked by the introduction of new phones with enhanced data capabilities and a resumption in capital investment for digital cable, metro-fiber and 3G infrastructure. As a result, our September quarter should mark a transition from low order visibility to more normal operating conditions, which should usher in a return to sequential top-line growth late in the calendar year."
Conference Call
Alpha will discuss its fourth-quarter and year-end fiscal 2001 financial results with investors in a conference call that will be broadcast Tuesday, May 1, 2001 at 5:15 p.m. (ET). Investors can hear the call live by dialing 719-457-2625. A replay of the call will be available two hours after the conclusion of the call through midnight Tuesday, May 8. The replay phone number is 719-457-0820. Please refer to confirmation code 568777.
Alpha also will provide a live audio Webcast of the call. Investors who want to listen to the Webcast should log on to the investor relations section of Alpha's Web site, www.alphaind.com, at least 15 minutes prior to the event's broadcast. Then, follow the instructions provided to assure that the necessary audio applications are downloaded and installed. The call will be archived on the Web site for two weeks.
About Alpha
Alpha is a leading provider of RF integrated circuit-based solutions, including semiconductors and ceramic components, for the broadband and wireless communications markets. Alpha's switches, power amplifiers and discrete semiconductors are used by the world's leading broadband, infrastructure and wireless communications companies to enhance the speed, quality and performance of voice, data and video. The Company's Alpha Integration Platform (aiIP) is a breakthrough manufacturing, packaging and design technique that reduces design complexity and improves the OEM's overall time to market for new products. For more information, please visit Alpha's Web site, www.alphaind.com.
Safe Harbor Statement - Except for the historical information contained herein, this news release contains forward-looking statements. These statements reflect the Company's current intentions, expectations and predictions of future results, accomplishments and other matters, all of which are inherently subject to risks and uncertainties. The Company's actual results may differ materially from those anticipated in the Company's forward-looking statements, based on various factors. Such factors include, but are not limited to: variations in projected financial results for the first quarter of fiscal 2002 and other future periods, expected benefits from and timing and success of the Company's product development efforts, Alpha's ability to generate increased dollar content per platform, successful participation in new data services such as 3G and GPRS, the timing and extent of recovery in the broadband and wireless markets, the success of Alpha's various strategic relationships, cancellation or postponement of customer orders, inability to predict customer orders, the disproportionate impact of the Company's business relationships with its larger customers, difficulty manufacturing products in sufficient quantity and quality, erosion of selling prices or margins, modification of the Company's plans or intentions, and market developments, competitive pressures and changes in economic conditions that vary from the Company's expectations. Additional information on these and other factors that may cause actual results and the Company's performance to differ materially is included in the Company's periodic reports filed with the SEC, including but not limited to the Company's Form 10-K for the year ended April 2, 2000, and subsequent Forms 10-Q. Copies may be obtained by contacting the Company or the SEC. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstance on which any such statement is based.
ALPHA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
Fourth Quarter Ended Fiscal Year Ended
(in thousands, except April 1, April 2, April 1, April 2,
per share data) 2001 2000 2001 2000
Net sales $ 53,995 $ 57,785 $ 271,568 $ 186,402
Cost of sales 33,702 32,936 151,632 105,566
Research and
development
expenses 9,783 7,651 36,026 25,336
Selling and
administrative
expenses 9,318 12,444 43,250 34,107
Operating income 1,192 4,754 40,660 21,393
Interest expense (2) (77) (56) (223)
Interest income and
other, net 2,644 2,126 8,666 6,077
Income before income
taxes 3,834 6,803 49,270 27,247
Provision for income
taxes 449 1,904 15,897 9,265
Net income $ 3,385 $ 4,899 $ 33,373 $ 17,982
Net income per share
basic $ 0.08 $ 0.12 $ 0.78 $ 0.44
Net income per share
diluted $ 0.08 $ 0.11 $ 0.75 $ 0.42
Weighted average common
shares basic 43,469 42,471 43,029 40,659
Weighted average common
shares diluted 44,729 44,689 44,752 42,822
COMPARATIVE BALANCE SHEET
(unaudited) April 1, April 2,
(in thousands) 2001 2000
Assets
Current assets
Cash, cash equivalents and
short-term investments $153,784 $146,610
Accounts receivable, net 36,984 33,844
Inventories 15,661 11,916
Prepaid expenses and other
current assets 13,572 11,035
Property, plant and equipment,
less accumulated
depreciation and amortization 114,196 75,520
Other assets 2,822 2,099
Total assets $337,019 $281,024
Liabilities and Equity
Current liabilities
Current portion of
long-term debt $ 129 $ 3,011
Accounts payable 20,820 20,537
Accrued liabilities and other
current liabilities 10,764 9,500
Long-term debt 235 345
Other long-term liabilities 5,893 5,538
Stockholders' equity 299,178 242,093
Total liabilities and equity $337,019 $281,024
Note- During the first quarter of fiscal 2001, Alpha incurred $1.8 million in one-time transaction expenses in connection with the acquisition of Network Device, Inc. (NDI). The acquisition was accounted for as a pooling-of-interests. All periods presented have been restated to include the results of operation and financial position of NDI.
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| CONTACT: | Alpha |
|---|---|
| Paul Vincent, Chief Financial Officer | |
| (781) 935-5150 Ext. 4438 | |