Andrew Corp. (Nasdaq: ANDW), supplier of wireless communication equipment, said Thursday third quarter earnings were 18 cents a share, beating First Call's expectations of 16 cents a share, but paling in comparison to the 28 cents a share it earned in the same period last year.
Shares closed at 19 3/8 Wednesday, down from a 52-week high of 21 1/4.
The company also said orders were $216.7 million, up 2 percent from $213 million last year, and sales were $186.1 million, 9 percent below last year's $204.2 million.
Net income was $14.7 million, down 40 percent, compared with $24.6 million for the same period last year. Diluted net income per share for the third quarter declined to 18 cents a share, a fall from profits of 28 cents a share in the same quarter last year. Excluding the effect of a reduction in the year to date tax rate from 34 percent to 32 percent, diluted net income per share was 16 cents a share.
Andrew announced increasing order rates will give them sales improvements in the fourth quarter. "Sales, while improved over the preceding quarter, declined $18.1 million compared to the same quarter in the prior year. Lower customer spending for new site construction in the U.S. wireless infrastructure market accounted for most of the decline," said Floyd English, chairman, president and CEO in a company statement. "The pace of business showed signs of recovery during the June 1999 quarter, especially for orders. Orders were 23% higher than in the preceding quarter," he added, attributing the growth to increased customer spending for wireless infrastructure in the United States and China.
The company also cited its first major Local Multipoint Distribution Services (LMDS) antenna order of $1.6 million was a for the rise in order activity. LMDS is a millimeter wave service designed to provide high speed internet access and broadband, wireless transmission.
Other activity in the June 1999 quarter was a repurchase of 252,500 shares. Since May 1997 the company has repurchased a total of 10.0 million shares for a total cost of $198 million. At June 30, 1999, 5.0 million shares are authorized for repurchase.
In other earnings news Thursday:
Revenue for the quarter was $48.5 million, compared with $69.8 million for the comparable period in 1998. "The actual results for the quarter are in line with our pre-announcement on June 17 after an adjustment of approximately $1 million in revenue and earnings, reflecting a late quarter pricing action,'' said William L. Marriner, chairman, president and chief executive officer ina company release. "This pricing action is part of an aggressive marketing and sales program" he added.
Shares rose 1/8 to 4 1/4 in Thursday morning trading.
Revenue was $280.5 million, up from $266.9 million for the same quarter of 1998. Revenue for the first six months was $565.5 million, an increase over the $497.0 million netted in the first half of 1998. "As previously announced, beginning late in the second quarter, we saw clear signs that clients are reluctant to begin new IT initiatives until after the millennium. This reluctance, combined with the anticipated decline in Y2K business, resulted in revenue and earnings that were below our earlier expectations," said John F. Keane, chairman and chief executive officer.
The company currently expects revenues for 1999 to be approximately flat with 1998 revenue of $1.1 billion and earnings per share to be in a range of $1.40 to $1.50. First Call is expecting $1.43 a share.
Shares were up 1 7/16 to 24 3/8.
Net loss was $1.0 million, or 7 cents a share in the same period in 1998. Net Perceptions expanded its client list significantly in the qaurter, adding 26 new licensed customers, the largest number it has ever signed in one quarter.
Shares were up 3/8 to 21 7/8 in Thursday morning trading.
The loss came from specific one-time charges and repositioning charge of $8.9 million. If adjusted for these charges, the company would have reported $7.9 million, or 13 cents a share.
Earnings are down compared to net income of $13.5 million, or 21 cents a share for the same period last year. Revenue was $163.5 million versus $156.6 million for the same period last year. Growth for the second quarter was driven by demand for Cambridge's Customer Management Solutions (CMS), up 45 percent over last year, and Interactive Solutions services, up 41 percent over prior year, according to the company release.
"Cambridge's longer-term strategy centered on developing relationships with our existing clients. Our repeat business rate improved this quarter over last quarter and over the second quarter of last year,'' said James K. Sims, President and Chief Executive Officer
Shares were up 7/8 to 17 11/16 Thursday.