Exhibit 99.1
ADDVANTAGE TECHNOLOGIES GROUP, INC. REPORTS
FINANCIAL RESULTS FOR FIRST QUARTER FISCAL 2005
Broken Arrow, Oklahoma, January 27, 2004--ADDvantage Technologies Group,
Inc. (AMEX:AEY) today announced its financial results for its first fiscal
quarter that ended December 31, 2004.
Net Revenues increased by 8.6% in the first quarter 2005 to $12.3 million
from last year's $11.3 million.
Net Income grew by 8.7% for the first quarter 2005, reaching $1.5 million
compared to $1.4 million in the first quarter of fiscal 2004. The gains in
profit are primarily a reflection of the increase in revenues and maintaining
operating margins.
Basic income per share for the first quarter 2005 was $0.13, up 18% from
the first quarter of 2004, while diluted income per share was also $0.13. The
Company redeemed $8 million of the Company's convertible preferred stock in the
fourth quarter that effectively resulted in the basic and the diluted income
per share being the same.
"After the exceptional performance we saw in our business last year, we
are pleased that the beginning quarter of fiscal 2005 reflects a continuation
of the strong growth trends for ADDvantage." said David Chymiak, Chairman.
"The increasing momentum we have seen in sales of Scientific-Atlanta products
as a "Master Stocking Distributor" and Motorola products reflects a growing
awareness of our Value Added Reseller relationships with these companies."
Ken Chymiak, President and CEO, commented, "We are pleased with our first
quarter results. Our Company's ability to deliver in a short time span is the
key to our success with many of our customers."
ADDVANTAGE TECHNOLOGIES GROUP, INC. (AMEX: AEY), through its subsidiaries,
Tulsat, Lee Enterprise, NCS Industries, ComTech Services, Tulsat-Texas, and
Tulsat-Atlanta distribute new and refurbished cable television ("CATV")
equipment, and operate repair centers at each location. Tulsat is a Value
Added Reseller ("VAR") and a Master Distributor for Scientific-Atlanta legacy
products and is a distributor for most of their other products. NCS is a VAR
for Motorola broadband and transmission products and national distributor for
PROMAX test equipment. The Company is also a distributor for other companies
such as Blonder-Tongue, Standard Electronics, Videotek, Quintech Electronics,
and Corning Gilbert, among others. In addition to selling new, excess and
refurbished cable television equipment throughout North America and other
regions, they operate repair centers specializing in many different Original
Equipment Manufacturer ("OEM") products. Tulsat is also a Third Party
Authorized Repair Center for select Scientific-Atlanta products and ComTech
Services is an authorized Alpha warranty repair center. For more information,
please visit the corporate web site at www.addvantagetech.com or contact the
Company directly at 918-251-9121.
The information in this announcement may include forward-looking statements.
All statements, other than statements of historical facts, which address
activities, events or developments that the Company expects or anticipates will
or may occur in the future, are forward-looking statements. These statements
are subject to risks and uncertainties which could cause actual results and
developments to differ materially from these statements. A complete discussion
of these risks and uncertainties is contained in the Company's reports and
documents filed from time to time with the Securities and Exchange Commission.
ADDvantage Technologies Group, Inc.
Statement of Operations
(Unaudited)
Three Months Ended
December 31,
2004 2003
---- ----
Revenues $ 12,261,125 $ 11,292,500
Operating Income $ 2,488,841 $ 2,233,923
Net Income $ 1,514,687 $ 1,393,170
Net Income Applicable
to Common Stock $ 1,304,687 $ 1,083,170
Net Income Per Share
of Common Stock
Basic $ .13 $ .11
Diluted $ .13 $ .10
Shares Used in Computing
Net Income Per Share:
Basic 10,061,756 10,011,314
Diluted 10,117,873 12,080,044
Contact: ADDvantage Technologies Group, Inc. l605 E. Iola Broken Arrow, OK
Ken Chymiak (9l8) 25l-2887
David Chymiak (9l8) 25l-2887
Dee Cooper (9l8) 25l-9l2l