Exhibit 99.1
ADDvantage Technologies Group, Inc.
Reports Profit Increase For Fiscal Year 2003
BROKEN ARROW, Okla.--(BUSINESS WIRE)--Dec. 15, 2003--ADDvantage
Technologies Group, Inc. (AMEX:AEY) today announced financial results
for their year ended September 30, 2003. Revenues for the year were
$33.3 million, an increase of 31% compared to $25.4 million for fiscal
year 2002. Net income attributable to common shareholders increased to
$3.3 million, or $.33 per share, which compares to $961,000, or $.10
per share for fiscal year 2002, an increase of 230%. The increase in
net income was partly attributable to an inventory write-down in 2002
of $1,443,000 ($831,000 after tax) due to a reduction of market prices
on certain items of used and new inventory. In comparison, the Company
recorded a charge of $447,000 ($295,000 after tax) in fiscal 2003 to
reduce inventory for obsolete equipment.
Revenues for the fourth quarter ended September 30, 2003 increased
$1.6 million, or 22.2%, to $8.8 million compared with $7.2 million in
the same period in 2002. This increase was primarily a result of
increased sales of new Scientific-Atlanta and Motorola products.
Gross margin for the fourth quarter was 37.5% of sales, as
compared to 26.8% for the same period in the previous year. This
increase was primarily a result of the inventory write-down in 2002
partially offset by the charge in 2003 to reduce inventory for
obsolete equipment.
Net income applicable to common stock for the current quarter was
$895,000, or $.09 per share as compared to a net loss of $405,000, or
($.04) per share for the same period last year.
Summarizing the fiscal year results, Ken Chymiak, President and
CEO, commented, "We are pleased with our performance this year, as
cable operators and other users of our products have embraced our role
as a Master Distributor for several of Scientific-Atlanta's legacy
products, and the Company has increased its sales of Motorola
products. We experienced increased sales and service revenues each
quarter during this past year. Based on the first two months of this
new fiscal year, the trend is continuing."
"We expect to continue our growth internally and through
acquisitions," commented David Chymiak, Chairman of the Board.
"ADDvantage is now listed on the American Stock Exchange, which we
believe provides greater market awareness of our Company."
ADDVANTAGE TECHNOLOGIES GROUP, INC. and its subsidiaries, TULSAT,
Lee Enterprise, NCS Industries, Comtech Services, TULSAT-Texas, and
TULSAT-Atlanta comprise an organization involved in the sale of new
and surplus cable television ("CATV") equipment , and providing
re-manufacture and repair services of that equipment to the franchised
and private cable television industries. The Company operates
Scientific-Atlanta 3rd Party Authorized Repair Centers for certain
product lines and is a Scientific-Atlanta Master Distributor for most
current products and exclusive distributor for SA legacy products. The
Company is also a distributor for Motorola, Blonder-Tongue, Quintech,
Videotek, Drake, Standard, Corning Gilbert, and others. 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)
Year Ended Three Months Ended
September 30, September 30,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenues $33,327,745 $25,408,931 $ 8,810,309 $ 7,153,025
Operating Income $ 6,454,472 $ 3,865,645 $ 1,267,635 ($ 139,473)
Net Income
Applicable to
Common Stock $ 3,252,588 $ 961,208 $ 895,195 ($ 405,345)
Net Income Per Share
of Common Stock
Basic $ .33 $ .10 $ .09 ($ .04)
Diluted $ .30 $ .10 $ .08 ($ .04)
Shares Used in
Computing Net
Income Per Share:
Basic 10,007,756 9,991,716 10,009,314 9,991,716
Diluted 12,137,631 11,991,716 12,139,189 11,991,716
CONTACT: ADDvantage Technologies Group, Inc., Broken Arrow
Ken Chymiak, 9l8-25l-2887
David Chymiak, 9l8-25l-2887
Dee Cooper, 9l8-25l-9l2l