Exhibit 99
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Radyne Corporation
Condensed Consolidated Balance Sheets
Unaudited
(in thousands, except share data)
June 30, 2006 | December 31, 2005 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 24,886 | $ | 16,928 | ||
Accounts receivable - trade, net of allowance for doubtful accounts of $467 and $804, respectively | 22,321 | 20,337 | ||||
Cost in excess of billings | 218 | — | ||||
Inventories | 21,655 | 18,057 | ||||
Deferred tax assets | 3,017 | 3,010 | ||||
Income tax receivable | 1,021 | — | ||||
Prepaid expenses and other assets | 702 | 864 | ||||
Total current assets | 73,820 | 59,196 | ||||
Goodwill | 29,950 | 30,333 | ||||
Intangibles | 6,137 | 6,706 | ||||
Property and equipment, net | 3,734 | 4,098 | ||||
Other assets | 254 | 295 | ||||
Total Assets | $ | 113,895 | $ | 100,628 | ||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 5,194 | $ | 5,054 | ||
Accrued expenses | 9,045 | 9,045 | ||||
Customer advance payments | 1,615 | 2,319 | ||||
Current portion of long-term debt | 1,000 | 1,000 | ||||
Income taxes payable | — | 609 | ||||
Total current liabilities | 16,854 | 18,027 | ||||
Long-term debt, less current portion | 3,250 | 3,750 | ||||
Deferred tax liability | 382 | 752 | ||||
Deferred rent and other | 232 | 459 | ||||
Total liabilities | 20,718 | 22,988 | ||||
Stockholders’ equity: | ||||||
Common stock; $.001 par value - authorized, 50,000,000 shares; issued and outstanding, 18,217,024 shares and 17,334,467 shares, respectively | 18 | 17 | ||||
Additional paid-in capital | 73,155 | 63,171 | ||||
Retained earnings | 19,999 | 14,450 | ||||
Other comprehensive income | 5 | 2 | ||||
Total stockholders’ equity | 93,177 | 77,640 | ||||
Total Liabilities and Stockholders’ Equity | $ | 113,895 | $ | 100,628 | ||
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Radyne Corporation
Condensed Consolidated Statements of Operations
Unaudited
(in thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Net sales | $ | 34,633 | $ | 20,613 | $ | 65,826 | $ | 34,321 | ||||||||
Cost of sales | 20,203 | 10,973 | 38,506 | 17,556 | ||||||||||||
Gross profit | 14,430 | 9,640 | 27,320 | 16,765 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 7,044 | 4,715 | 13,573 | 8,392 | ||||||||||||
Research and development | 2,617 | 1,832 | 5,340 | 3,330 | ||||||||||||
Total operating expenses | 9,661 | 6,547 | 18,913 | 11,722 | ||||||||||||
Earnings from operations | 4,769 | 3,093 | 8,407 | 5,043 | ||||||||||||
Other (income) expense: | ||||||||||||||||
Interest expense | 68 | 54 | 146 | 80 | ||||||||||||
Interest and other income | (235 | ) | (238 | ) | (452 | ) | (488 | ) | ||||||||
Earnings before income taxes | 4,936 | 3,277 | 8,713 | 5,451 | ||||||||||||
Income tax expense | 1,781 | 1,202 | 3,162 | 1,935 | ||||||||||||
Net earnings | $ | 3,155 | $ | 2,075 | $ | 5,551 | $ | 3,516 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.18 | $ | 0.12 | $ | 0.31 | $ | 0.21 | ||||||||
Diluted | $ | 0.17 | $ | 0.12 | $ | 0.30 | $ | 0.20 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 18,012 | 16,727 | 17,786 | 16,601 | ||||||||||||
Diluted | 18,800 | 17,410 | 18,674 | 17,337 | ||||||||||||
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Radyne Corporation
Condensed Consolidated Statements of Cash Flows
Unaudited
(in thousands)
Six Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 5,551 | $ | 3,516 | ||||
Adjustments to reconcile net earnings tonet cash provided by operating activities: | ||||||||
Gain on disposal of property and equipment | (203 | ) | (21 | ) | ||||
Decrease in allowance for doubtful accounts | 152 | 6 | ||||||
Deferred income taxes | 335 | 1,611 | ||||||
Depreciation and amortization | 1,758 | 623 | ||||||
Tax benefit from stock plan dispositions | 1,199 | 116 | ||||||
Amortization of stock compensation | 1,128 | — | ||||||
Increase (decrease) in cash, excluding effects of acquisition, resulting from changes in: | ||||||||
Accounts receivable | (2,136 | ) | (1,936 | ) | ||||
Cost in excess of billings | (218 | ) | — | |||||
Inventories | (3,598 | ) | (339 | ) | ||||
Income tax receivable | (1,021 | ) | — | |||||
Prepaids and other assets | 194 | 18 | ||||||
Accounts payable | (83 | ) | (877 | ) | ||||
Accrued expenses | (188 | ) | (828 | ) | ||||
Income taxes payable | (609 | ) | (22 | ) | ||||
Customer advance payments | (704 | ) | 277 | |||||
Accrued stock option compensation | (40 | ) | (5 | ) | ||||
Net cash provided by operating activities | 1,517 | 2,139 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of Xicom, net of cash acquired | (104 | ) | (43,346 | ) | ||||
Capital expenditures | (913 | ) | (652 | ) | ||||
Proceeds from sales of property and equipment | 298 | 26 | ||||||
Net cash used in investing activities | (719 | ) | (43,972 | ) | ||||
Cash flows from financing activities: | ||||||||
Net borrowing from notes payable | — | 5,000 | ||||||
Payment of notes payable | (500 | ) | — | |||||
Exercise of stock options | 5,875 | 445 | ||||||
Exercise of redeemable warrants | — | 2,718 | ||||||
Net proceeds from sales of common stock to employees | 610 | 274 | ||||||
Tax benefit from stock plan dispositions | 1,172 | — | ||||||
Principal payments on capital lease obligations | — | (4 | ) | |||||
Net cash provided by financing activities | 7,157 | 8,433 | ||||||
Effects of exchange rate changes on cash and cash equivalents | 3 | (1 | ) | |||||
Net increase in cash and cash equivalents | 7,958 | (33,401 | ) | |||||
Cash and cash equivalents, beginning of year | 16,928 | 39,300 | ||||||
Cash and cash equivalents, end of quarter | $ | 24,866 | $ | 5,899 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 151 | $ | 80 | ||||
Cash paid for taxes | $ | 2,085 | $ | 231 | ||||
Supplemental disclosure of non-cash investing activity: | ||||||||
Adjustments for Xicom Acquisition Accounting | $ | 488 | $ | — | ||||
Issuance of 219,709 shares of common stock for Xicom acquisition | — | $ | 2,018 | |||||