Celeritek Announces Order Cancellation; Preliminary Fourth Quarter Earnings Expectations

Apr 26, 2001, 01:00 ET from Celeritek, Inc.

    SANTA CLARA, Calif., April 26 /PRNewswire/ --
 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 announced the
 termination of approximately $18.5 million of orders for satellite products.
 The Company also announced preliminary results for the fourth quarter and
 fiscal year 2001, ended March 31, 2001.
     In addition to the satellite product cancellations, Celeritek reported
 that in the past few weeks a number of its customers in the radio market have
 rescheduled or delayed orders.  In light of the current slowdown in the
 wireless communications market, the Company has reviewed its backlog and after
 adjusting for order delays and uncertainties, the backlog is approximately
 $60 million, down from $91 million at December 31, 2000.
     Net sales for the fourth quarter of fiscal 2001 are expected to total
 approximately $18.0 million, compared with $15.5 million reported in the
 fourth quarter of fiscal 2000.  Sequentially, net sales were down 26% from the
 third quarter of fiscal 2001.  The Company also expects to record reserves and
 write-downs associated with the terminations and delay of contracts.  The
 reserve is related to accounts receivable, inventory and asset impairments.
 Including the charges above the net loss for the fourth quarter of fiscal 2001
 is expected to be between $15.5 million and $16.5 million.  Excluding these
 reserves, the net loss for the fourth fiscal quarter is expected to be between
 $3.3 million and $4.3 million reflecting sequentially lower earnings primarily
 attributable to lower shipment levels and the initial costs and lower than
 normal yields associated with the ramp of the Company's module business.
     Revenue for fiscal 2001 increased to $85.1 million from $48.2 million in
 fiscal 2000, an increase of 76%.  Including the reserves above the Company
 expects to report a loss for the year of between $9.6 million and
 $10.6 million.  Absent the reserve, the net income for the year is expected to
 be between $1.6 million and $2.6 million.  The Company expects to take an
 additional charge related to resizing the Company in the first fiscal quarter
 of 2002 in the range of $300,000 to $400,000.
     The Company is scheduled to report fourth quarter results on May 2, 2001.
     Celeritek management will conduct a conference call today, April 26, 2001
 at 2:00 PDT.  The call can be accessed by dialing 712-271-3217.  The
 reservation number is 5614763.  The passcode is "celeritek."  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 402-220-9670 with the reservation code 5614763.
     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 about
 expected results for the fourth quarter of fiscal 2001 and fiscal 2001, and an
 expected charge in the first quarter of fiscal 2002.  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
 include possible accounting adjustments in the final results for these
 periods, changes in the expected level of reserves, changes in the Company's
 plans to resize, and possible difficulties in identifying ways to resize the
 Company.  Reference is also 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.
 
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SOURCE Celeritek, Inc.
    SANTA CLARA, Calif., April 26 /PRNewswire/ --
 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 announced the
 termination of approximately $18.5 million of orders for satellite products.
 The Company also announced preliminary results for the fourth quarter and
 fiscal year 2001, ended March 31, 2001.
     In addition to the satellite product cancellations, Celeritek reported
 that in the past few weeks a number of its customers in the radio market have
 rescheduled or delayed orders.  In light of the current slowdown in the
 wireless communications market, the Company has reviewed its backlog and after
 adjusting for order delays and uncertainties, the backlog is approximately
 $60 million, down from $91 million at December 31, 2000.
     Net sales for the fourth quarter of fiscal 2001 are expected to total
 approximately $18.0 million, compared with $15.5 million reported in the
 fourth quarter of fiscal 2000.  Sequentially, net sales were down 26% from the
 third quarter of fiscal 2001.  The Company also expects to record reserves and
 write-downs associated with the terminations and delay of contracts.  The
 reserve is related to accounts receivable, inventory and asset impairments.
 Including the charges above the net loss for the fourth quarter of fiscal 2001
 is expected to be between $15.5 million and $16.5 million.  Excluding these
 reserves, the net loss for the fourth fiscal quarter is expected to be between
 $3.3 million and $4.3 million reflecting sequentially lower earnings primarily
 attributable to lower shipment levels and the initial costs and lower than
 normal yields associated with the ramp of the Company's module business.
     Revenue for fiscal 2001 increased to $85.1 million from $48.2 million in
 fiscal 2000, an increase of 76%.  Including the reserves above the Company
 expects to report a loss for the year of between $9.6 million and
 $10.6 million.  Absent the reserve, the net income for the year is expected to
 be between $1.6 million and $2.6 million.  The Company expects to take an
 additional charge related to resizing the Company in the first fiscal quarter
 of 2002 in the range of $300,000 to $400,000.
     The Company is scheduled to report fourth quarter results on May 2, 2001.
     Celeritek management will conduct a conference call today, April 26, 2001
 at 2:00 PDT.  The call can be accessed by dialing 712-271-3217.  The
 reservation number is 5614763.  The passcode is "celeritek."  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 402-220-9670 with the reservation code 5614763.
     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 about
 expected results for the fourth quarter of fiscal 2001 and fiscal 2001, and an
 expected charge in the first quarter of fiscal 2002.  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
 include possible accounting adjustments in the final results for these
 periods, changes in the expected level of reserves, changes in the Company's
 plans to resize, and possible difficulties in identifying ways to resize the
 Company.  Reference is also 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.
 
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 SOURCE  Celeritek, Inc.