Exhibit 99.1
ADDVANTAGE TECHNOLOGIES GROUP, INC. ANNOUNCES
FINANCIAL RESULTS FOR SECOND QUARTER FISCAL 2005
Broken Arrow, Oklahoma, April 28, 2005--ADDvantage Technologies Group,
Inc. (AMEX:AEY), a Master Stocking Distributor for Scientific-Atlanta and
Motorola broadband and transmission products, today announced its financial
results for its second fiscal quarter that ended March 31, 2005.
For the second quarter of 2005, the Company reported net sales of $9.9
million compared to $11.7 million for the same period in fiscal 2004. Net
income attributable to common stock for the second quarter was $878,000, or
$0.09 per diluted share, compared to $1.2 million, or $0.11 per diluted share,
for the same period in fiscal 2004.
Net revenues for the first two quarters of fiscal 2005 totaled $22.2
million compared to $22.9 million for the same period in fiscal 2004. Net
income attributable to common stock for the first two quarters of fiscal 2005
was $2.2 million, or $0.22 per diluted share, compared to $2.3 million, or
$0.21 per diluted share, for the same period in fiscal 2004.
Ken Chymiak, President and CEO, commented, "Market conditions were
particularly challenging in the second quarter as a result of the weather and
the timing of orders. Also, the larger Multiple System Operators ("MSOs") are
assessing their strategic capital spending."
"The second quarter was the first time in 11 quarters that our revenues
had not increased over the same period of the prior year." said David Chymiak,
Chairman. "To achieve our stated goals, we are actively searching for viable
acquisition candidates and working with our channel partners to acquire more
exclusive product lines."
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 Industries
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.
Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2005 2004 2005 2004
---- ---- ---- ----
Revenues $ 9,894,886 $11,654,041 $22,156,011 $22,946,541
Operating Income $ 1,874,275 $ 2,420,755 $ 4,363,116 $ 4,654,678
Net Income $ 1,088,238 $ 1,523,626 $ 2,602,925 $ 2,916,796
Net Income Attributable
to Common Stock $ 878,238 $ 1,213,626 $ 2,182,925 $ 2,296,796
Net Income Per Share
of Common Stock
Basic $ 0.09 $ 0.12 $ 0.22 $ 0.23
Diluted $ 0.09 $ 0.11 $ 0.22 $ 0.21
Shares Used in Computing
Net Income Per Share:
Basic 10,065,128 10,035,613 10,063,441 10,023,463
Diluted 10,117,578 12,107,469 10,117,972 12,095,451
Company Contact: Ken Chymiak (9l8) 25l-2887
David Chymiak (9l8) 25l-2887
Dee Cooper (9l8) 25l-9l2l