Financial: AM Announces Fourth Quarter and Fiscal Year 1998 Results
AM COMMUNICATIONS, INC.
Condensed Statements of Operations ($000)
(Unaudited) (Audited)
Three Months Ended Year Ended
March 28, March 29, March 28, March 29,
1998 1997 1998 1997
Revenues $ 4,635 $ 2,216 $ 16,854 $ 10,510
Cost of Sales 2,681 1,321 9,303 5,715
Selling, General
& Administrative 758 763 2,611 2,590
Research and
Development 1,069 1,300 3,937 4,045
Operating Income
(Loss) 127 (1,168) 1,003 (1,840)
Net Income (Loss) $ 105 $ (2,103) $ 937 $ (2,761)
Basic Net Income
(Loss) Per Share $ Nil $ (0.07) $ .03 $ (0.09)
Diluted Net Income
(Loss) Per Share Nil (0.07) $ .03 (0.09)
Shares Used in
Computation of
Basic Net Income
(Loss) Per Share 31,068 31,042 31,053 31,018
Shares Used in
Computation of
Diluted Net Income
(Loss) Per Share 34,005 31,042 33,902 31,018
Condensed Balance Sheet ($000)
March 28, March 29,
1998 1997
(Audited) (Audited)
Cash $ 710 $ 620
Accounts Receivable 1,851 1,160
Inventory 2,073 2,106
Prepaid Expenses and Other 63 68
Total Current Assets 4,697 3,954
Equipment and Fixtures, Net 734 899
Other Assets 19 116
Total Assets $ 5,450 $ 4,969
Current Portion of Capitalized
Lease Obligations $ 108 $ 133
Accounts Payable 991 1,672
Advances 194 177
Accrued Expenses 987 652
Total Current Liabilities 2,280 2,634
Capitalized Lease Obligations – Long Term 39 149
Senior Convertible Redeemable Preferred Stock 2,583 2,583
Stockholders’ Equity 548 (397)
Total Liabilities and Stockholders’ Equity $ 5,450 $ 4,969
AM Communications, Inc. (AMCM) announced Monday financial results for its fourth quarter and 1998 fiscal year ended March 28, 1998. Revenues for the fourth quarter of fiscal 1998 were $4.6 million, up 109% from the $2.2 million report in the fourth quarter of fiscal 1997. The Company reported net income of $105,000 for the recent quarter compared to a loss of $2.1 million a year ago. Revenues for the fiscal year ended March 28, 1998 totaled $16.9 million, up 60% from the $10.5 million reported a year ago. Net income was $937,000 for fiscal 1998 compared to a net loss of $2.8 million for fiscal 1997. As previously announced in April 1998, the Company experienced a significant drop in bookings and backlog which has continued into its first quarter of fiscal 1999. As a result, the Company expects to report an operating loss in excess of $500,000 for its first quarter of fiscal 1999 ended June 27, 1998 on revenue levels of approximately 50% of those reported in the fourth quarter of fiscal 1998. Commenting on the present business situation, Keith D. Schneck, President and CEO said, “Our accomplishments in fiscal 1998 were many, however, we have been impacted by two major customers who have put spending programs involving network monitoring on hold and by lower levels of activity in our OEM business, principally in the international markets. “Our efforts to identify new domestic customer business have included restructuring our sales and marketing activities and adding additional direct sales staff which are just starting to show positive results, but will not contribute meaningful revenues for several months. “As a result, we have reduced our staffing levels in the past several months through layoffs and attrition primarily in non-critical areas. We have also obtained $1 million of committed capital financing to support our business. The Company is continuing its commitment to critical development programs including software and hardware enhancements to its OmniVU system, several of which are expected to be available in the second half of fiscal 1999. “Overall, we remain positive that the worldwide demand for broadband networking infrastructure will provide growth opportunities for AM. Our fiscal 1998 performance shows that the Company is capable of profitably managing that growth.” AM Communications, Inc. (AMCM), founded in 1974, is a market leader in the design, development, and integration of network monitoring systems for the broadband telecommunications industry. AM provides system solutions through its OEM partnerships with the industry leaders (i.e. – General Instrument, Philips Broadband Networks, and Scientific-Atlanta) and directly to end user customers. Additional information of AM’s business activities and products can be found on its Web Site (http://www.amcomm.com).
COPYRIGHT 1998 EDGE Publishing
COPYRIGHT 2000 Gale Group
