Endwave Acquires JCA Technology

Endwave acquires RF company serving the defense and homeland security market

Sunnyvale, CA -- Endwave Corporation, a provider of RF subsystems for aero-defense, security, and commercial wireless applications, today announced the acquisition of all of the outstanding shares of capital stock of JCA Technology, a wholly-owned subsidiary of Bookham Technology, for approximately $6.0 million in cash.

JCA has a distinguished 20 year history in providing state-of-the-art RF amplifiers and modules to the defense, commercial radar, and homeland security markets. These products are broadly used in applications such as electronic warfare, radar, and secure communications. JCA's customer base is spread across multiple defense contractors and subcontractors, with no customer representing greater than approximately 15% of revenues in recent quarters.

"This acquisition is strategically important to Endwave in building our defense and homeland security business base, and is complementary to our existing portfolio of RF module products for these markets," said John Mikulsky, senior VP of sales, marketing, and technology for Endwave. "In addition, we expect the acquisition of JCA to broaden our product offerings and strengthen our ties to familiar customers such as Raytheon, Northrop Grumman, Lockheed, L3, and Boeing."

Steve Turley, chief commercial officer at Bookham, added, "This transaction follows our strategy to focus on our core optical business. We believe that the combination of Endwave and JCA will strengthen both businesses, allowing them to focus on their core activities and create additional value for their customers."

Julianne Biagini, CFO for Endwave, stated, "Revenues from JCA are expected to add approximately $1.0 to $2.0 million to our revenues per quarter after full integration of the business unit, which is expected to occur by the end of 2004. Including the new revenues projected from JCA products, Endwave anticipates its revenues will be $7.0 to $8.0 million in the upcoming third quarter, and $11.0 to $12.0 million in the fourth quarter of 2004." Over the next two quarters, the JCA business unit and employees will be relocated from their current facility in San Jose, California, to Endwave's facilities in Sunnyvale, California and Diamond Springs, California. Management believes that the overall addition of JCA will be neutral to 2004 earnings and accretive to earnings in 2005."

Source: Endwave