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(TM) 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.

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.

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.