Radyne (RADN) 8-K Accounts receivable—trade, net of allowance for doubtful accounts of $266 and $804, respectively

Exhibit 99

Radyne Corporation

Consolidated Balance Sheets

December 31, 2006 and 2005

(in thousands, except share data)

	December 31,
	2006		2005
Assets
Current assets:
Cash and cash equivalents	$	27,540	$	16,928
Accounts receivable—trade, net of allowance for doubtful accounts of $266 and $804, respectively		27,828		20,337
Inventories		21,106		18,057
Deferred tax assets		2,593		3,010
Prepaid expenses and other assets		1,196		864
Total current assets		80,263		59,196
Goodwill		29,950		30,333
Intangible assets		5,567		6,706
Deferred tax assets, net		190		—
Property and equipment, net		3,822		4,098
Other assets		212		295
Total Assets	$	120,004	$	100,628
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	5,959	$	5,054
Accrued expenses		9,994		9,045
Customer advance payments		1,057		2,319
Current portion of long-term debt		—		1,000
Income taxes payable		981		609
Total current liabilities		17,991		18,027
Long-term debt, less current portion		—		3,750
Deferred tax liability		—		752
Deferred rent		148		413
Accrued stock option compensation		—		46
Total liabilities		18,139		22,988
Commitments and contingencies (notes 9 and 17)
Stockholders’ equity:
Common stock; $.001 par value—authorized, 50,000,000 shares; issued and outstanding, 18,351,576 shares and 17,334,467 shares, respectively		18		17
Additional paid-in capital		75,500		63,171
Retained earnings		26,315		14,450
Other comprehensive income		32		2
Total stockholders’ equity		101,865		77,640
Total Liabilities and Stockholders’ Equity	$	120,004	$	100,628

Radyne Corporation

Consolidated Statements of Operations

For the Years Ended December 31, 2006, 2005 and 2004

(in thousands, except per share data)

	Year ended December 31,
	2006			2005			2004
Net sales	$	134,209		$	103,263		$	56,578
Cost of sales		77,738			57,251			26,435
Gross profit		56,471			46,012			30,143
Operating expenses:
Selling, general and administrative		28,627			21,777			15,420
Research and development		10,947			8,824			5,330
Total operating expenses		39,574			30,601			20,750
Earnings from operations		16,897			15,411			9,393
Other (income) expense:
Interest expense		241			252			29
Interest and other income		(1,359	)		(665	)		(492	)
Earnings before income taxes		18,015			15,824			9,856
Income tax expense (benefit)		6,150			5,138			(3,644	)
Net earnings	$	11,865		$	10,686		$	13,500
Earnings per share:
Basic	$	0.66		$	0.63		$	0.83
Diluted	$	0.63		$	0.60		$	0.79
Weighted average number of common shares outstanding:
Basic		18,026			16,838			16,357
Diluted		18,845			17,700			17,136

Radyne Corporation

Consolidated Statements of Stockholders’ Equity and Comprehensive Income

Years ended December 31, 2006, 2005 and 2004

(in thousands)

	Common Stock				Additional Paid-in capital			Retained earnings (accumulated deficit)			Accumulated other comprehensive income		Total
	Shares		Amount
Balance, December 31, 2003	16,131			16		53,102			(9,500	)		—		43,618
Exercise of stock options	435			—		1,572			—			—		1,572
Issuance of common stock through employee stock purchase plan	70			—		460			—			—		460
Common stock repurchased and retired	(403	)		—		(2,555	)		(236	)		—		(2,791	)
Tax benefit from stock option exercises	—			—		1,835			—			—		1,835
Comprehensive income:
Net earnings	—			—		—			13,500			—		13,500
Comprehensive income														13,500
Balance, December 31, 2004	16,233			16		54,414			3,764			—		58,194
Exercise of stock options	462			1		2,053			—			—		2,054
Exercise of stock warrants	311			—		2,717			—			—		2,717
Issuance of common stock through employee stock purchase plan	109					768			—			—		768
Shares issued—acquisition	220			—		2,018			—			—		2,018
Acceleration of stock options	—			—		365			—			—		365
Tax benefit from stock option exercises						836			—			—		836
Comprehensive income:
Foreign translation adjustment	—			—		—			—			2		2
Net earnings	—			—		—			10,686			—		10,686
Comprehensive income														10,688
Balance, December 31, 2005	17,335		$	17	$	63,171		$	14,450		$	2	$	77,640
Exercise of stock options	870			1		6,265			—			—		6,266
Issuance of common stock through employee stock purchase plan	127			—		1,190			—			—		1,190
Stock compensation—stock awards	20			—		259			—			—		259
Stock compensation—stock options granted	—			—		1,699			—			—		1,699
Stock compensation—ESPP	—			—		429			—			—		429
Tax benefit from stock option exercises	—			—		2,487			—			—		2,487
Comprehensive income:
Foreign translation adjustment	—			—		—			—			30		30
Net earnings	—			—		—			11,865			—		11,865
Comprehensive income	—			—		—			—			—		11,895
Balance, December 31, 2006	18,352			18		75,500			26,315			32		101,865

Radyne Corporation

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2006, 2005 and 2004

(in thousands)

	Years ended December 31,
	2006			2005			2004
Cash flows from operating activities:
Net earnings	$	11,865		$	10,686		$	13,500
Adjustments to reconcile net earnings to net cash provided by operating activities:
Asset impairment charge		—			—			135
Provision for bad debt		374			(331	)		318
Deferred income taxes		187			3,070			(5,663	)
Gain on disposal of assets		(264	)		(53	)		(23	)
Depreciation and amortization		3,441			2,378			1,246
Tax benefit from stock plan dispositions		—			836			1,835
Stock compensation expense		2,387			365			—
Increase (decrease) in cash resulting from changes in:
Accounts receivable		(7,865	)		(4,787	)		(266	)
Inventories		(3,049	)		542			(366	)
Prepaid expenses and other current assets		(332	)		324			(364	)
Other assets		66			(44	)		20
Accounts payable		682			(2,262	)		(615	)
Accrued expenses		949			1,971			1,571
Income taxes payable		372			286			57
Customer advance payments		(1,262	)		347			(728	)
Long-term obligations		(265	)		(399	)		19
Accrued stock option compensation		(46	)		(100	)		(59	)
Net cash provided by operating activities		7,240			12,829			10,617
Cash flows from investing activities:
Acquisition, net of cash		(104	)		(43,538	)		—
Capital expenditures		(2,134	)		(2,053	)		(822	)
Proceeds from sales of property and equipment		388			104			148
Net cash used in investing activities		(1,850	)		(45,487	)		(674	)
Cash flows from financing activities:
Borrowing from notes payable		—			5,000			—
Payments under notes payable		(4,750	)		(250	)		—
Repurchase of common stock		—			—			(2,791	)
Net proceeds from sale of common stock to employees		1,190			768			460
Exercise of stock options		6,265			2,054			1,572
Exercise of redeemable warrants		—			2,717			—
Tax benefit from stock plan dispositions		2,487			—			—
Principal payments on capital lease obligations		—			(5	)		(14	)
Net cash (used in) provided by financing activities		5,192			10,284			(773	)
Net (decrease) increase in cash and cash equivalents		10,582			(22,374	)		9,170
Effects of exchange rate changes on cash and cash equivalents		30			2			—
Cash and cash equivalents, beginning of year		16,928			39,300			30,130
Cash and cash equivalents, end of year	$	27,540		$	16,928		$	39,300
Supplemental disclosures of cash flow information:
Cash paid for interest	$	275		$	176		$	29
Cash paid for taxes	$	3,104		$	623		$	125
Non-cash investing activities:
Issuance of 219,709 shares of common stock in acquisition	$	—		$	2,018		$	—
Adjustments for Xicom acquisition accounting, primarily for tax credits identified during allocation period	$	488		$	—		$	—