Inspirations

[ksuave]

AMLJ

AML Communications Reports Third Quarter Results
Monday January 31, 9:01 am ET

CAMARILLO, Calif.--(BUSINESS WIRE)--Jan. 31, 2005--AML Communications, Inc. (OTCBB:AMLJ - News) today announced results for the third quarter ended December 31, 2004.

Net sales for the third quarter were $2.3 million compared with $2.0 million for the same period a year earlier. AML Communications, Inc. reported a net income for the quarter of $379,000 or $0.04 basic earnings per share, compared with a net income of $356,000 or $0.05 basic earnings per share, for the same period a year ago. Net income for the nine months ended December 31, 2004, was $722,000 or $0.08 basic earnings per share, compared with a net income of $910,000 or $0.12 basic earnings per share for the same period last year.

Jacob Inbar, President and Chief Executive Officer, said: "Revenues and earnings during the quarter were the result of investments in new products developed during previous quarters; however these were partially offset by infrastructure and resource expenditures that are addressing future demand of new products. The demand for new products remains strong."

AML Communications, Inc. will hold a conference call to review Q3 FY2005 financial results and to discuss ongoing operations. The conference call will be held today, January 31, 2005 at 11:00AM, Pacific Time. Leading the call will be Jacob Inbar, President and Chief Executive Officer. He will be joined by Susan Fite, Director of Finance, and Ed McAvoy, VP Sales and Marketing.

To take part in this conference call, dial 888-803-5993 and ask for AML Communications conference, ID #3720755. We look forward to speaking with you on Monday, January 31, 2005. If you should have any questions please contact Susan Fite at 805-388-1345 x 208. Additionally, if you miss the conference call, you can access the replay by calling 800-642-1687 and then entering the conference ID number: 3720755. This will be available through Wednesday, February 2, 2005.

AML Communications is a designer, manufacturer and marketer of Amplifiers and Sub-systems that address the Defense microwave markets. The Company's Web site is located at http://www.amlj.com

The information contained in this press release contains certain forward-looking statements that involve risks and uncertainties, such as the statements of the Company's plans, objectives, expectations and intentions. The Company's actual results could differ materially from those indicated by such statements as a result of various factors including: reductions or cancellations in orders from new or existing customers; success in the design of new products; the opportunity for future orders from domestic and international customers; general economic conditions; limited number of potential customers; variability in gross margins on new products; inability to deliver products as forecast; failure to acquire new customers; continued or new deterioration of business and economic conditions in the Company's customers' marketplaces; intensely competitive industry conditions with increasing price competition; business conditions; and, growth in the wireless communications market, as well as those factors discussed in the Company's Form 10-KSB and Form 10-QSB on file with the SEC.

AML COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

Three Month Periods Nine Month Periods
Ended Ended
----------------------- -----------------------
December December December December
31, 31, 31, 31,
2004 2003 2004 2003
----------- ----------- ----------- -----------

Net sales $2,284,000 $2,003,000 $6,340,000 $5,280,000
Cost of goods sold 1,146,000 1,047,000 3,483,000 2,683,000
----------- ----------- ----------- -----------
Gross profit 1,138,000 956,000 2,857,000 2,597,000

Operating expenses:
Selling, general &
administrative 521,000 349,000 1,467,000 993,000
Research and
development 226,000 177,000 609,000 550,000
----------- ----------- ----------- -----------
SAE 747,000 526,000 2,076,000 1,543,000

Profit (loss) from
operations 391,000 430,000 781,000 1,054,000

Other (expense)
income, net (12,000) (40,000) (59,000) (56,000)
----------- ----------- ----------- -----------
Profit (loss) before
provision for income
taxes 379,000 390,000 722,000 998,000
Provision for income
taxes --- 34,000 --- 88,000
----------- ----------- ----------- -----------

Net profit $379,000 $356,000 $722,000 $910,000
=========== =========== =========== ===========

Basic earnings (loss)
per common share $0.04 $ 0.05 $0.08 $0.12
=========== =========== =========== ===========
Basic weighted average
number of shares of
common stock
outstanding 9,982,000 7,838,000 9,119,000 7,833,000
=========== =========== =========== ===========
Diluted earnings (loss)
per common share $0.03 $ 0.04 $0.07 $0.09
=========== =========== =========== ===========
Diluted weighted
average number of
shares of common
stock outstanding 11,933,000 9,616,000 11,070,000 9,611,000
=========== =========== =========== ===========


AML COMMUNICATIONS, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited)

For
December 31,
2004
------------
ASSETS
------
Current Assets:
Cash and cash equivalents $1,738,000
Accounts receivable, net of allowance for doubtful
accounts of $45,000 at December 31, 2004 927,000
Inventories, net of inventory reserve of $496,000 at
December 31, 2004 1,636,000
Other current assets 122,000
------------
Total current assets 4,423,000

Property and Equipment, at cost 3,746,000
Less: Accumulated depreciation and amortization (3,095,000)
------------
Property and Equipment, net 651,000
Intangible Assets:
Technologies, net 910,000
Patents 175,000
Customer lists, net 273,000
Trademarks 181,000
Other Assets 33,000
------------
Total Assets $6,646,000
============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current Liabilities:
Accounts payable $167,000
Line of Credit 85,000
Current portion of capital lease obligations 71,000
Accrued expenses:
Accrued payroll and payroll related expenses 155,000
Accrued income taxes 284,000
Other accrued liabilities 145,000
------------
Total current liabilities 907,000
------------

Notes payable - officers, net ---
Notes payable - investors, net ---
Deferred Taxes 11,000
Capital Lease Obligations, net of current portion 10,000
------------
Total liabilities 928,000
------------
Stockholders' Equity:
Common stock, $0.01 par value:15,000,000 shares
authorized; 9,984,199 shares issued and outstanding
at December 31, 2004 100,000

Capital in excess of par value 13,378,000
Accumulated deficit (7,760,000)
------------
Total stockholders' equity 5,718,000
------------
$6,646,000