Exhibit 99.1
RADYNE REPORTS THIRD QUARTER SALES OF $32.1 MILLION
PHOENIX, Oct. 23 /PRNewswire-FirstCall/ -- Radyne Corporation (Nasdaq:
RADN), today reported net sales for the third quarter of 2006 of $32.1 million
compared to third quarter 2005 net sales of $32.1 million. During the quarter,
net sales for the amplifier segment (Xicom Technology) rose to $15.6 million, an
increase of 15% from third quarter 2005 sales of $13.6 million. Net sales for
the satellite electronics and broadcast segment for the quarter were $16.5
million compared to $18.6 million for the third quarter of 2005.
Net earnings for the third quarter of 2006 were $2.8 million, or $0.15 per
diluted share compared to earnings of $2.9 million, or $0.16 per diluted share
for the same quarter of 2005. Earnings from operations were $3.8 million during
the third quarter of 2006 compared to $4.4 million for the third quarter of
2005. Third quarter 2006 includes equity compensation expense of $924,000 which
had the effect of reducing earnings per diluted share by $0.03.
Bookings during the quarter were $32.1 million, compared to bookings of
$36.3 million in the third quarter of 2005. At the end of the third quarter of
2006, Radyne's backlog was $33.2 million compared to $34.0 million at the end of
the third quarter of 2005.
For the first nine months of 2006, sales rose 47% to $97.9 million compared
to $66.5 million for the first nine months of 2005. Consolidated sales for the
nine months of 2005 included eighteen weeks of Xicom amplifier sales. Earnings
per diluted share for the first nine months of 2006 grew to $0.44 from $0.36 for
the same period in 2005. During the first nine months of 2006, the Company
recorded $1.5 million of expense related to its CEO succession which had the
effect of reducing earnings per diluted share by $0.05.
"Xicom had a record month of sales in September and is on pace for a record
year," commented Myron Wagner, Radyne's CEO. "Our satellite electronics and
broadcast segment results were impacted by the loss of one order and the
deferral of two others into the fourth quarter. However, we remain optimistic
that sales in this business will recover during our traditionally strong fourth
quarter. Coupled with Xicom's strength, we continue to believe that the full
year, 2006 will meet our expectations."
For the first nine months of 2006, Radyne's cash balance increased 70% to
$28.7 million compared to $16.9 million at the beginning of 2006. Consolidated
Accounts Receivable increased to $22.1 million compared to $20.3 million at the
beginning of 2006. Consolidated Inventory was $21.3 million compared to $18.1
million at the beginning of 2006.
Radyne will be holding a conference call on Monday, October 23, 2006 at 4:30
p.m. EDT to discuss its third quarter 2006 financial results and operational
highlights. The call is open to the public. The domestic dial in number is
1-866-700-7477 and the international dial in number is +1-617-213-8840. 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, troposcatter, 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, San
Diego, and Santa Clara, 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 Xicom sales will continue to grow or that
consolidated results for the year will meet expectations. 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.
Financial Statements follow.
Radyne Corporation
Condensed Consolidated Balance Sheets
(in thousands, except share data)
September 30, December 31,
2006 2005
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 28,724 $ 16,928
Accounts receivable - trade, net of
allowance for doubtful accounts of
$256 and $804, respectively 22,088 20,337
Inventories 21,287 18,057
Deferred tax assets 2,961 3,010
Income tax receivable 622 --
Prepaid expenses and other assets 443 864
Total current assets 76,125 59,196
Goodwill 29,950 30,333
Intangibles 5,852 6,706
Property and equipment, net 3,811 4,098
Other assets 221 295
Total Assets $ 115,959 $ 100,628
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,123 $ 5,054
Accrued expenses 9,051 9,045
Customer advance payments 1,164 2,319
Current portion of long-term debt 1,000 1,000
Income taxes payable -- 609
Total current liabilities 15,338 18,027
Long-term debt, less current portion 3,000 3,750
Deferred tax liability 125 752
Deferred rent and other 201 459
Total liabilities 18,664 22,988
Stockholders' equity:
Common stock; $.001 par value - authorized,
50,000,000 shares; issued and outstanding,
18,276,381 shares and 17,334,467 shares,
respectively 18 17
Additional paid-in capital 74,506 63,171
Retained earnings 22,752 14,450
Other comprehensive income 19 2
Total stockholders' equity 97,295 77,640
Total Liabilities and Stockholders' Equity $ 115,959 $ 100,628
Radyne Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Unaudited
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------- ---------------------------------------
% of % of % of % of
2006 Sales 2005 Sales 2006 Sales 2005 Sales
---------- ----- ---------- ----- ---------- ----- ---------- -----
Net sales $ 32,073 $ 32,146 $ 97,899 $ 66,468
Cost of sales 17,865 18,780 56,372 36,337
Gross profit 14,208 44% 13,366 42% 41,527 42% 30,131 45%
Operating expenses:
Selling, general
and administrative 7,543 6,265 21,259 14,656
Research and
development 2,880 2,727 8,220 6,058
Total operating
expenses 10,423 8,992 29,479 20,714
Earnings from
operations 3,785 12% 4,374 14% 12,048 12% 9,417 14%
Other (income)
expense:
Interest expense 64 87 210 166
Interest and
other income (358) (57) (952) (545)
Earnings before
income taxes 4,079 4,344 12,790 9,796
Income tax expense 1,325 1,464 4,487 3,399
Net earnings $ 2,754 9% $ 2,880 9% $ 8,303 8% $ 6,397 10%
Earnings per share:
Basic $ 0.15 $ 0.17 $ 0.46 $ 0.38
Diluted $ 0.15 $ 0.16 $ 0.44 $ 0.36
Weighted average
number of common
shares outstanding:
Basic 18,238 16,995 17,938 16,734
Diluted 18,922 17,927 18,819 17,533
Radyne Corporation
Segment Reporting
Unaudited
Three months ended September 30, 2005
(in thousands)
Satellite electronics
and broadcast equipment Amplifiers Corporate Total
----------------------- ---------- --------- --------
Net sales $ 18,591 $ 13,555 $ -- $ 32,146
Operating income 7,048 766 (3,440) 4,374
Depreciation and
amortization $ 228 $ 617 $ -- $ 845
Three months ended September 30, 2006
(in thousands)
Satellite electronics
and broadcast equipment Amplifiers Corporate Total
----------------------- ---------- --------- --------
Net sales $ 16,503 $ 15,570 $ -- $ 32,073
Operating income 6,632 1,541 (4,388) 3,785
Depreciation and
amortization $ 266 $ 649 $ -- $ 915
Nine months ended September 30, 2005
(in thousands)
Satellite electronics
and broadcast equipment Amplifiers Corporate Total
----------------------- ---------- --------- --------
Net sales $ 47,912 $ 18,556 $ -- $ 66,468
Operating income 18,100 1,058 (9,741) 9,417
Depreciation and
amortization $ 684 $ 788 $ -- $ 1,472
Total assets $ 33,654 $ 58,204 $ -- $ 91,858
Nine months ended September 30, 2006
(in thousands)
Satellite electronics
and broadcast equipment Amplifiers Corporate Total
----------------------- ---------- --------- --------
Net sales $ 51,295 $ 46,604 $ -- $ 97,899
Operating income 19,616 4,694 (12,262) 12,048
Depreciation and
amortization $ 791 $ 1,882 $ -- $ 2,673
Total assets $ 54,942 $ 61,017 $ -- $115,959
SOURCE Radyne Corporation
-0- 10/23/2006
/CONTACT: Malcolm Persen, Chief Financial Officer of Radyne Corporation,
+1-602-437-9620/
/Web site: http://www.radn.com /