PHOENIX, Nov. 5, 2007 (PRIME NEWSWIRE) -- Radyne Corporation (Nasdaq:RADN), today reported sales of $38.4 million and earnings of $0.19 per diluted share for the third quarter of 2007. This compares to sales of $32.1 million and earnings of $0.15 per diluted share for the third quarter of 2006. For the first three quarters of 2007, sales were $102.3 million and earnings per diluted share were $0.43 compared to $97.9 million and $0.44 for the same period last year. Sales for the third quarter set a new company record surpassing the previous sales record of $36.8 million set during the fourth quarter of 2005.
Year-to-date as well as quarterly results included two months from the Company's recently acquired AeroAstro business unit totaling $2.3 million in sales. AeroAstro designs and builds small and microsatellites and related technologies and operates the Sensor Enabled Notification System (SENS), which provides cost effective satellite based low data rate communications and asset tracking around the world.
The company booked $33.1 million in new orders during the period generating a backlog of $40.3 million. In the year-earlier period, Radyne booked $32.1 million in new orders, resulting in a backlog of $33.2 million. During the month of October, the company booked an additional $22.6 million in new orders.
"We are continuing to execute the objectives outlined in our growth strategy," commented Myron Wagner, CEO. "Sustained strength in our Xicom amplifier business coupled with the penetration of the troposcatter modems market and continued strong interest in our Skywire(tm) product line are positioning our core businesses for stabilized growth. The integration of our newest business, AeroAstro remains on plan, and we look forward to reporting further growth next quarter."
Reported earnings included equity compensation expense of $392,000 during the third quarter of 2007 which reduced EPS by $0.01 per share. Third quarter 2006 equity compensation expense was $924,000 which had the effect of reducing earnings per diluted share by $0.03.
At the end of the third quarter, Radyne's cash balance dropped to $19.9 million from $27.5 million at the end of 2006. As mentioned above, during the third quarter, Radyne completed its purchase of AeroAstro, Inc. for $18.5 million which consisted of $17.2 million of cash, assumption of $354,000 of debt (net of cash acquired), and stock valued at $897,000 at the time of the acquisition announcement.
Radyne will be holding a conference call today, Monday, November 5, 2007 at 4:30 p.m. EST to discuss its third quarter 2007 financial results and operational highlights. The call is open to the public. The domestic dial in number is 1-888-713-3593 (U.S./Canada) and the international dial in number is 913-312-1304. The conference will also be accessible via webcast at http://investors.radn.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 sells under four brands:
* Radyne builds satellite modems, converters and switches, * Xicom Technology produces high power amplifiers, * AeroAstro is a leader in microsatellite systems, components, and advanced communications technologies, * Tiernan supplies HDTV and SDTV encoding and transmission equipment.
Radyne is headquartered in Phoenix, Arizona, with additional offices in Santa Clara and San Diego, California, Ashburn, Virginia and Littleton, Colorado. In addition, the Company has sales offices in Singapore, Beijing, Jakarta and the United Kingdom. For more information, visit our web site at www.radn.com.
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 our businesses will continue to grow or that new product and market initiatives will meet sales expectations in the future. 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) Unaudited September 30, December 31, 2007 2006 ------------- ------------ Assets Current assets: Cash and cash equivalents $ 19,917 $ 27,540 Accounts receivable - trade, net of allowance for doubtful accounts of $476 and $266, respectively 25,318 27,828 Cost in excess of billings 1,194 -- Inventories 24,755 21,106 Deferred tax assets 3,456 2,593 Income tax receivable 932 -- Prepaid expenses and other assets 740 1,196 ------------- ------------ Total current assets 76,312 80,263 Goodwill 45,176 29,950 Intangibles 9,135 5,567 Deferred tax assets, net 105 190 Property and equipment, net 3,619 3,822 Other assets 248 212 ------------- ------------ Total Assets $ 134,595 $ 120,004 ============= ============ Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 7,349 $ 5,959 Accrued expenses 9,297 9,994 Customer advance payments 1,474 1,057 Income taxes payable -- 981 ------------- ------------ Total current liabilities 18,120 17,991 Obligation under capital lease 234 -- Deferred rent and other 744 148 ------------- ------------ Total liabilities 19,098 18,139 ------------- ------------ Stockholders' Equity: Common stock; $.001 par value - authorized, 50,000,000 shares; issued and outstanding, 18,697,037 shares and 18,351,576 shares, respectively 19 18 Additional paid-in capital 80,390 75,500 Retained earnings 34,980 26,315 Other comprehensive income 108 32 ------------- ------------ Total stockholders' Equity 115,497 101,865 ------------- ------------ Total Liabilities and Stockholders' Equity $ 134,595 $ 120,004 ------------- ------------ Radyne Corporation Condensed Consolidated Statements of Operations (in thousands, except per share data) Unaudited Three-Months Ended Nine-Months Ended September 30, September 30, ---------------- ------------------ 2007 2006 2007 2006 -------- -------- -------- -------- Net sales $ 38,374 $ 32,073 $102,340 $ 97,899 Cost of sales 23,177 17,865 61,215 56,372 -------- -------- -------- -------- Gross profit 15,197 14,208 41,125 41,527 Operating expenses: Selling, general and administrative 7,393 7,543 21,017 21,259 Research and development 3,073 2,880 8,942 8,220 -------- -------- -------- -------- Total operating expenses 10,466 10,423 29,959 29,479 -------- -------- -------- -------- Earnings from operations 4,731 3,785 11,166 12,048 Other (income) expense: Interest expense 6 64 17 210 Interest and other income (316) (358) (1,200) (952) -------- -------- -------- -------- Earnings before income taxes 5,041 4,079 12,349 12,790 Income tax expense 1,455 1,325 4,197 4,487 -------- -------- -------- -------- Net earnings $ 3,586 $ 2,754 $ 8,152 $ 8,303 ======== ======== ======== ======== Earnings per share: Basic $ 0.19 $ 0.15 $ 0.44 $ 0.46 ======== ======== ======== ======== Diluted $ 0.19 $ 0.15 $ 0.43 $ 0.44 ======== ======== ======== ======== Weighted average number of common shares outstanding: Basic 18,614 18,238 18,462 17,938 ======== ======== ======== ======== Diluted 19,210 18,922 19,047 18,819 ======== ======== ======== ======== Radyne Corporation Condensed Consolidated Statements of Cash Flows (in thousands) Unaudited Nine-Months Ended September 30, ------------------ 2007 2006 -------- -------- Cash flows from operating activities: Net earnings $ 8,152 $ 8,303 Adjustments to reconcile net earnings to net cash provided by operating activities: Gain on disposal of property and equipment (102) (244) Provision for bad debt (201) 341 Deferred income taxes (379) 133 Depreciation and amortization 2,787 2,688 Tax benefit from stock plan dispositions 104 1,237 Amortization of stock compensation 981 2,052 Increase (decrease) in cash resulting from changes in: Accounts receivable 5,144 (2,091) Cost in excess of billings (1,195) -- Inventories (3,572) (3,230) Income tax receivable (932) (622) Prepaids and other assets 501 477 Accounts payable 333 (1,155) Accrued expenses (1,885) (206) Income taxes payable (638) (609) Customer advance payments 379 (1,155) Accrued stock option compensation -- (45) Deferred revenue 59 -- -------- -------- Net cash provided by operating activities 9,536 5,874 -------- -------- Cash flows from investing activities: Acquisitions, net of cash acquired (17,782) (104) Capital expenditures (1,470) (1,640) Proceeds from sales of property and equipment 144 353 -------- -------- Net cash used in investing activities (19,108) (1,391) -------- -------- Cash flows from financing activities: Payment of notes payable -- (750) Exercise of stock options 992 6,180 Net proceeds from sales of common stock to employees 595 610 Tax benefit from stock plan dispositions 298 1,256 Principal payments on capital lease obligations (12) -- -------- -------- Net cash provided by financing activities 1,873 7,296 -------- -------- Effects of exchange rate changes on cash and cash equivalents 76 17 -------- -------- Net increase in cash and cash equivalents (7,623) 11,796 -------- -------- Cash and cash equivalents, beginning of year 27,540 16,928 Cash and cash equivalents, end of quarter $ 19,917 $ 28,724 ======== ======== Supplemental disclosures of cash flow information: Cash paid for interest $ 17 $ 220 ======== ======== Cash paid for taxes $ 5,705 $ 3,092 ======== ======== Non-cash investing activities: Issuance of 219,709 shares of common stock in acquisition $ 1,865 $ -- ======== ======== Supplemental disclosures of non-cash flow information: Adjustments for Xicom acquisition accounting $ -- $ 488 ======== ======== Deferred tax asset change due to adoption of FIN 48 $ 568 $ -- ======== ======== Radyne Corporation Segment Reporting Unaudited Three-Months ended September 30, 2006 (in thousands) Satellite electronics and broadcast Ampli- Micro- equipment fiers satellites Corporate Total --------------------------------------------- Net sales $ 16,503 $ 15,570 $ -- $ -- $ 32,073 Operating income (expense) 6,632 1,541 -- (4,388) 3,785 ======== ======== ======= ======== ========= Depreciation and amortization $ 266 $ 654 $ -- $ -- $ 920 ======== ======== ======= ======== ========= Three-Months ended September 30, 2007 (in thousands) Satellite electronics and broadcast Ampli- Micro- equipment fiers satellites Corporate Total --------------------------------------------- Net sales $ 15,668 $ 20,394 $ 2,312 $ -- $ 38,374 Operating income (expense) 2,925 3,544 $ (109) (1,629) 4,731 ======== ======== ======= ======== ========= Depreciation and amortization $ 244 $ 642 $ 112 $ -- $ 998 ======== ======== ======= ======== ========= Nine-Months ended September 30, 2006 (in thousands) Satellite electronics and broadcast Ampli- Micro- equipment fiers satellites Corporate Total --------------------------------------------- Net sales $ 51,295 $ 46,604 $ -- $ -- $ 97,899 Operating income (expense) 19,616 4,694 -- (12,262) 12,048 ======== ======== ======= ======== ========= Depreciation and amortization $ 791 $ 1,897 $ -- $ -- $ 2,688 ======== ======== ======= ======== ========= Total assets $ 54,942 $ 61,017 $ -- $ -- $ 115,959 ======== ======== ======= ======== ========= Nine-Months ended September 30, 2007 (in thousands) Satellite electronics and broadcast Ampli- Micro- equipment fiers satellites Corporate Total --------------------------------------------- Net sales $ 46,766 $ 53,262 $ 2,312 $ -- $ 102,340 Operating income (expense) 9,049 7,265 (109) (5,039) 11,166 ======== ======== ======= ======== ========= Depreciation and amortization $ 773 $ 1,902 $ 112 $ -- $ 2,787 ======== ======== ======= ======== ========= Total assets 46,678 64,247 23,670 -- 134,595 ======== ======== ======= ======== =========
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