Exhibit 99.1
RADYNE REPORTS 71% INCREASE IN 2ND QUARTER SALES
PHOENIX, Aug. 3 /PRNewswire-FirstCall/ -- Radyne Corporation (Nasdaq: RADN),
today reported net sales for the second quarter of 2005 were $20.6 million
compared to second quarter 2004 net sales of $12.0 million. The increase
resulted from both growth in sales of the Company's core satellite and video
business, as well as the addition of sales from recently acquired Xicom
Technology, Inc. As previously announced, Radyne completed the Xicom acquisition
on May 27th and the consolidated results announced today reflect financial
activity since that date. Net sales for Radyne, excluding Xicom, increased by
31% to $15.7 million during the second quarter. The growth in sales is
attributable to strength in the Company's core satellite and broadcast markets.
Net earnings for the second quarter of 2005 were $2.1 million, or $0.12 per
fully diluted share compared to earnings of $1.3 million, or $0.08 per fully
diluted share for the same quarter of 2004.
For the first six months of 2005, sales rose 27% to $34.3 million compared
to $27.1 million for the first six months of 2004.
Bookings during the quarter were $22.7 million, a 71% increase over bookings
of $13.3 million in the second quarter of 2004. At the end of the second quarter
of 2005, Radyne's backlog was $30.2 million compared to $5.8 million at the end
of the second quarter of 2004. The backlog for Radyne, excluding Xicom, rose to
$13.3 million.
During the quarter, the completion of the Xicom acquisition coupled with a
borrowing of $5.0 million resulted in a cash balance of $5.9 million compared to
$39.3 million at year-end 2004. Consolidated Accounts Receivable increased to
$17.1 million compared to $9.7 million at the beginning of the year.
Consolidated Inventory increased to $18.9 million from $8.1 million at the
beginning of 2005.
"This is our 9th consecutive profitable quarter," commented Bob Fitting,
CEO. "In addition to outstanding Radyne financial results and strong Radyne
product lines, we believe the Xicom addition to the company will produce
additional desirable financial and strategic results continuing our string of
profitable quarters."
Radyne will be holding a conference call on Wednesday, August 3, 2005 at
4:30 p.m. EDT to discuss its second quarter 2005 financial results and
operational highlights. The call is open to the public. The domestic dial in
number is 1-866-202-3048 and the international dial in number is 617-213-8843.
The conference will also be accessible via the Internet at www.radn.com and
www.earnings.com.
About Radyne Corporation
Radyne Corporation designs, manufactures, sells, integrates and installs
products, systems and software used for the transmission and reception of data
and video over satellite, microwave and cable communication networks. The
Company, through its Tiernan subsidiary, is a supplier of HDTV and SDTV encoding
and transmission equipment. The Xicom Technology subsidiary is a producer of
high power amplifiers for communications applications. Radyne is headquartered
in Phoenix, Arizona, has manufacturing facilities in Phoenix, Arizona; and San
Diego, and Santa Clara, California and sales offices in Singapore, Beijing,
Jakarta and the United Kingdom. The Company also has sales and/or service
centers in Sao Paulo, Bangalore, Shanghai and Moscow. For more information,
visit our web site at www.radn.com. Additional information on Xicom is available
at www.xicomtech.com.
Contact: Malcolm Persen, Chief Financial Officer, 602.437.9620
Safe Harbor Paragraph for Forward-Looking Statements
This press release includes statements that constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Reform Act") and Radyne Corporation claims the protection of the
safe-harbor for forward-looking statements contained in the Reform Act.
Forward-looking statements involve risks, uncertainties and other factors that
may cause actual results, performance or achievements of Radyne Corporation and
its subsidiaries to be materially different from those expressed or implied by
such forward-looking statements. These forward-looking statements are often
characterized by the terms "may," "believes," "projects," "expects," "intends"
or "anticipates," and do not reflect historical facts. Specific forward-looking
statements contained in this press release include expectations for future
revenues, orders and backlog, cash flow and earnings per share and indications
that the Company will benefit from strong market demand for its new products.
There is no assurance that the Xicom acquisition will continue to provide
desirable financial or strategic results for the Company. We cannot guarantee
that the Company will continue to generate cash and asset fluctuations may be
seasonal in nature and not an indication of future results. There can be no
assurance that the indicators that the Company relies on to gauge future
business prospects, such as backlog and bookings, will accurately forecast
future results.
Factors that may affect forward-looking statements and the Company's
business generally include but are not limited to the following: changes in
demand for the Company's products, product mix, the timing of customer orders
and deliveries, the impact of competitive products and pricing, constraints on
supplies of critical raw materials, excess or shortage of production capacity,
and other risks discussed from time to time in the Company's SEC filings and
reports. In addition, such statements could be affected by general industry and
market conditions and growth rates, and general domestic and international
economic conditions.
Forward-looking statements speak only as of the date the statement was made.
Radyne Corporation does not undertake and specifically declines any obligation
to update any forward-looking statements. In addition, the Company does not
endorse any projections regarding future performance that may be made by third
parties.
Radyne Corporation
Condensed Consolidated Balance Sheets
(in thousands, except share data)
June 30, December 31,
2005 2004
------------ ------------
Assets Unaudited
Current assets:
Cash and cash equivalents $ 5,899 $ 39,300
Accounts receivable - trade, net of
allowance for doubtful accounts
of $818 and $350, respectively 17,141 9,728
Inventories 18,937 8,132
Deferred tax assets 3,481 2,218
Prepaid expenses and other assets 1,073 846
Total current assets 46,531 60,224
Deferred tax assets, net 3,082 3,445
Property and equipment, net 3,923 1,593
Other assets 282 154
Goodwill and intangibles 35,001 --
Total Assets $ 88,819 $ 65,416
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long term debt $ 1,000 --
Accounts payable 6,437 $ 1,566
Accrued expenses 6,789 4,835
Income taxes payable 290 242
Customer advance payments 2,248 149
Total current liabilities 16,764 6,792
Long term debt 4,000 --
Long-term obligations 662 284
Accrued stock option compensation 141 146
Total liabilities 21,567 7,222
Stockholders' equity:
Common stock; $.001 par value -
authorized, 50,000,000 shares;
issued and outstanding,
16,918,816 shares and
16,232,999 shares, respectively 17 16
Retained earnings 7,252 3,764
Additional paid-in capital 59,983 54,414
Total stockholders' equity 67,252 58,194
Total liabilities and
stockholders' equity $ 88,819 $ 65,416
Radyne Corporation
Condensed Consolidated Statements of Operations
(in thousands, except share data)
Unaudited
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2005 2004 2005 2004
-------- -------- -------- --------
Net sales $ 20,613 $ 12,020 $ 34,321 $ 27,093
Cost of sales 10,973 5,971 17,556 13,064
Gross profit 9,640 6,049 16,765 14,029
Operating expenses:
Selling, general and
administrative 4,715 3,462 8,392 6,872
Research and development 1,832 1,258 3,330 2,554
Total operating expenses 6,547 4,720 11,722 9,426
Earnings from operations 3,093 1,329 5,043 4,603
Other (income) expense:
Interest expense 54 3 80 5
Interest and other income (238) (89) (488) (172)
Earnings before income taxes 3,277 1,415 5,451 4,770
Income tax expense 1,202 92 1,935 312
Net earnings $ 2,075 $ 1,323 $ 3,516 $ 4,458
Earnings per share:
Basic $ 0.12 $ 0.08 $ 0.21 $ 0.27
Diluted $ 0.12 $ 0.08 $ 0.20 $ 0.26
Weighted average number of
common shares outstanding:
Basic 16,727 16,476 16,601 16,410
Diluted 17,410 17,211 17,337 17,430
SOURCE Radyne Corporation
-0- 08/03/2005
/CONTACT: Malcolm Persen, Chief Financial Officer of Radyne Corporation,
+1-602-437-9620/
/Web site: http://www.xicomtech.com /
/Web site: http://www.radn.com /