UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
-------------------------------------------------
Date of Report (Date of earliest event reported): January 27, 2000
SAWTEK INC.
(Exact name of registrant as specified in its charter)
Florida
(State or other jurisdiction of incorporation)
000-28276
(Commission File No.)
59-1864440
(IRS Employer Identification No.)
1818 South Highway 441
Apopka, Florida 32703
(Address of principal executive offices)
(407) 886-8860
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
Sawtek Inc. announced its record net sales and profits for the
quarter ended December 31, 1999.
Item 7. Financial Statements and Exhibits
Exhibit 99.1 Sawtek Inc. Press Release dated January 27, 2000: Sawtek Inc.
Announces Record Net Sales and Profit for the Quarter Ended
December 31, 1999.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SAWTEK INC.
By:/s/ Raymond A. Link
Sr. Vice President Finance and
Chief Financial Officer
January 27, 2000
Exhibit 99.1
NEWS RELEASE
Contact: Ray Link
Chief Financial Officer
Sawtek Inc.
Tel: 407/884-3344
Fax: 407/886-7061
E-mail: [email protected]
For Immediate Release
SAWTEK ANNOUNCES RECORD NET SALES AND PROFIT
FOR THE QUARTER ENDED DECEMBER 31, 1999
Orlando, Florida, January 27, 2000 ------ Sawtek Inc. (Nasdaq: SAWS) today
reported record net sales, net income and earnings per share for the quarter
ended December 31, 1999.
Net sales of $31.8 million for the quarter are up 43% compared to net sales of
$22.2 million for the quarter ended December 31, 1998. Net income of $10.2
million, or $0.23 per diluted share for the quarter is up 61% compared to $6.3
million, or $0.15 per diluted share for the same quarter of the previous year.
Gary A. Monetti, Chief Executive Officer, stated, "The increase in net sales was
a result of increased shipments of bandpass filters for CDMA digital wireless
phones, including approximately $2.4 million of shipments of SAW RF filters.
Sawtek began shipments of SAW RF filters in the quarter ended December 31, 1999.
Net income and diluted earnings per share increased from last year due to the
higher net sales and higher than expected gross profit margin of 57.6%. The
gross margin was higher than expected due to better than planned yields on new
products."
Sawtek designs, develops, manufacturers and markets a broad range of electronic
signal processing components based on surface acoustic wave, or SAW, technology
primarily for use in the wireless communications industry. Our primary products
are custom-designed, high performance bandpass filters, resonators, delay lines,
oscillators and SAW-based subsystems. These products are used in a variety of
microwave and RF systems, such as CDMA and GSM digital wireless communications
systems, digital microwave radios, wireless local area networks, cable
television equipment, Internet infrastructure, various defense and satellite
systems, and chemical sensors.
Forward-looking statements in this release are made pursuant to the Safe Harbor
provisions of the Private Securities Litigation Act of 1995. Investors are
cautioned that forward-looking statements such as statements of the Company's
plans, objectives, expectations and intentions involve risks and uncertainties.
The cautionary statements made in this release should be read as being
applicable to all related statements wherever they appear. Statements containing
terms such as "believes", "does not believe", "no reason to believe", "expects",
"plans", "intends", "estimates", or "anticipates", are considered to contain
uncertainty and are forward-looking statements. The Company's actual results
could differ materially from those discussed. Factors that could contribute to
such differences include the following: a decline in either the growth of
wireless communications or the acceptance of CDMA technology; our ability to
successfully develop and bring new products to market, particularly RF filters;
our ability to successfully increase production capacity; our dependence on a
limited number of suppliers for certain key raw materials; risks associated with
international sales; our dependence on a few large customers; declining selling
prices for some of our key products; decreased manufacturing yields;
cancellation of purchase orders by our customers; competitive products or
technologies that could reduce demand for our products; our inability to protect
our intellectual property or if we infringe on the intellectual property of
others; increased competition from other SAW suppliers; risks associated with
our Costa Rican operations; risk of natural disasters; and other risks discussed
in our SEC filings including Form 10K and Form S-3A filed on January 24, 2000.
<PAGE>
A reader of this release should understand that it is not possible to predict or
identify all such risk factors. Consequently, the reader should not consider
this list to be a complete statement of all potential risks or uncertainties. We
do not assume the obligation to update any forward-looking statement.
We will be hosting a conference call with the investment community on Friday,
January 28, 2000, at 12:01 p.m. EST. Investors will have the opportunity to
listen to the conference call over the Internet through Vcall at
http://www.vcall.com. To listen to the live call, please go to the web site at
least fifteen minutes early to register, download, and install any necessary
audio software. For those who cannot listen to the live broadcast, a replay will
be available shortly after the call.
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<TABLE>
SAWTEK INC.
Condensed Consolidated Balance Sheets
(in thousands)
<CAPTION>
Dec. 31, 1999 Sept. 30, 1999
------------- --------------
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $119,262 $115,274
Accounts receivable 19,104 18,641
Inventories 8,941 8,052
Other current assets 3,376 3,170
-------- --------
Total current assets 150,683 145,137
Property, plant and equipment, net 53,710 46,442
-------- --------
Total assets $204,393 $191,579
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities:
Accounts payable and accrued liabilities $ 6,684 $ 9,367
Current maturities of long-term debt 334 379
Income taxes payable 3,133 191
-------- --------
Total current liabilities 10,151 9,937
Long-term debt, less current maturities 1,718 1,790
Deferred income taxes 23,599 21,453
Shareholders' equity:
Common stock and capital surplus 74,088 74,776
Unearned ESOP compensation (781) (781)
Retained earnings 97,513 87,330
Less common stock held in treasury (1,895) (2,926)
-------- --------
Total shareholders' equity 168,925 158,399
-------- --------
Total liabilities & shareholders' equity $204,393 $191,579
======== ========
</TABLE>
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<TABLE>
SAWTEK INC.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
<CAPTION>
Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
1999 1999 1998
---- ---- ----
<S> <C> <C> <C>
Net sales $31,798 $28,515 $22,219
Cost of sales 13,494 11,701 9,958
-------- ------- -------
Gross profit 18,304 16,814 12,261
Operating expenses:
Selling expenses 1,239 1,395 1,385
General & administrative expenses 1,237 1,089 1,079
Research & development expenses 1,678 1,480 1,197
------- ------- -------
Total operating expenses 4,154 3,964 3,661
------- ------- -------
Operating income 14,150 12,850 8,600
Other income, net 1,456 1,328 1,119
------- ------- -------
Income before taxes 15,606 14,178 9,719
Income taxes 5,423 4,963 3,402
------- ------- -------
Net income $10,183 $ 9,215 $ 6,317
======= ======= =======
Net income per share:
Basic $ 0.24 $ 0.22 $ 0.15
Diluted $ 0.23 $ 0.21 $ 0.15
Shares used in per share calculation:
Basic 42,325 42,193 41,764
Diluted 43,657 43,236 42,462
</TABLE>
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<TABLE>
SAWTEK INC.
Consolidated Statements of Income
(Percentage of Net Sales)
<CAPTION>
Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
1999 1999 1998
---- ---- ----
<S> <C> <C> <C>
Net sales 100.0% 100.0% 100.0%
Cost of sales 42.4 41.0 44.8
----- ----- -----
Gross profit 57.6 59.0 55.2
Operating expenses:
Selling expenses 3.9 4.9 6.2
General & administrative expenses 3.9 3.8 4.9
Research & development expenses 5.3 5.2 5.4
----- ----- -----
Total operating expenses 13.1 13.9 16.5
----- ----- -----
Operating income 44.5 45.1 38.7
Other income, net 4.6 4.6 5.0
----- ----- -----
Income before taxes 49.1 49.7 43.7
Income taxes 17.1 17.4 15.3
----- ----- -----
Net income 32.0% 32.3% 28.4%
===== ===== =====
</TABLE>
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