The second quarter loss from continuing operations excluding non-cash and non-recurring items, was $2.5 million, or $0.05 per diluted common share, as compared to a net loss from continuing operations excluding non-cash and non-recurring items in the previous quarter of $3.1 million, or $0.06 per diluted common share, and income from continuing operations before non-cash and non-recurring items of $628,000, or $0.01 per diluted common share in the second quarter of last year.
The unprecedented downturn in telecom equipment spending continues to impact our business, said Malcolm Caraballo, Chief Executive Officer and President of WJ Communications. However, second quarter sales increased slightly over the previous quarter as sequential growth in wireless sales helped to offset weakness in the market for communication semiconductors. Our wireless sales were driven once again by double digit sequential growth for our fixed wireless products, as well as improvement in our mobile wireless infrastructure product sales. We also experienced strong demand for our thin-film products and are encouraged by the market’s response to our offerings in this area.
In light of the slowdown telecommunication spending, our visibility, as well as the visibility of most of our customers, remains low, continued Mr. Caraballo. We are encouraged by the modest sequential increase in second quarter sales and by initial orders received for our new fiber optic and semiconductor products introduced earlier this year.
We continue to deliver on our strategy to further broaden our product line, expand our customer base and deepen our penetration into our existing customers. We firmly believe that our efforts to leverage our core technology into new products and new markets will allow us to emerge from the current economic downturn a stronger, more diversified company, even better positioned to capitalize on the demand for increased broadbandover the long-term.
The Company currently expects third quarter sales to be in the range of $16 to $17.5 million. As of July 1, 2001, the Company maintained its strong liquidity position with approximately $61 million in cash and short-term investments with no long-term debt.
Reported results for the second quarter of 2001 are a net loss from continuing operations of $2.8 million, or $0.05 per diluted common share. This compares to net income from continuing operations of $838,000, or $0.01 per diluted common share, for the second quarter of 2000. The 2000 second quarter results include a $808,000 pretax gain on the disposition of real properties.
SOURCE: COMPANY PRESS RELEASE
