RADN Radyne Corp (MM)

PHOENIX, July 24 /PRNewswire-FirstCall/ -- Radyne Corporation (NASDAQ:RADN), today reported net sales for the second quarter of 2006 were $34.6 million compared to second quarter 2005 net sales of $20.6 million. The increase resulted from continued growth in both the amplifier and the satellite electronics and broadcast segments. During the second quarter of 2005, the Company completed its merger with Xicom Technology. Consolidated sales for that quarter included only five weeks of Xicom sales. Net sales for the satellite electronics and broadcast segment increased by 18% to $18.5 million during the second quarter of 2006 compared to the same period one year ago. The second quarter of 2006 was the fourth consecutive quarter of sequential sales growth for the Company's Xicom subsidiary. Xicom sales for the quarter were $16.1 million compared to $14.9 million for the first quarter of 2006. Net earnings, after taxes and interest, for the second quarter of 2006 were $3.2 million, or $0.17 per diluted share compared to earnings of $2.1 million, or $0.12 per diluted share for the same quarter of 2005. Earnings from operations increased 54% to $4.8 million during the second quarter of 2006 from $3.1 million for the second quarter of 2005. Reported second quarter 2006 earnings included equity compensation expense which had the effect of reducing earnings per diluted share by $0.02 compared to the year earlier period due to the adoption of new accounting standards. Bookings during the quarter were $34.1 million, a 53% increase over bookings of $22.3 million in the second quarter of 2005. At the end of the second quarter of 2006, Radyne's consolidated backlog was $33.2 million compared to $29.8 million at the end of the second quarter of 2005. For the first six months of 2006, sales rose 92% to $65.8 million compared to $34.3 million for the first six months of 2005. Earnings per diluted share for the first six months of 2006 grew to $0.30 from $0.20 for the same period in 2005. Consolidated sales for the six months of 2005 included only five weeks of Xicom sales. "So far, 2006 has been a very good year for Radyne," commented Bob Fitting, CEO. "With Xicom's growth and the current sales outlook for our satellite and broadcast businesses, we expect to show significant year over year increases in sales and profits." For the first six months of 2006, Radyne's cash balance increased 47% to $24.9 million compared to $16.9 million at the beginning of 2006. Consolidated Accounts Receivable increased to $22.3 million compared to $20.3 million at the beginning of 2006. Consolidated Inventory was $21.7 million compared to $18.1 million at the beginning of 2006. Radyne will be holding a conference call on Monday, July 24, 2006 at 4:30 p.m. EDT to discuss its second quarter 2006 financial results and operational highlights. The call is open to the public. The domestic dial in number is 1-866-578-5747 and the international dial in number is 617-213-8054. The conference will also be accessible via the Internet at http://www.radn.com/ and http://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 http://www.radn.com/. Additional information on Xicom is available at http://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 Radyne sales will continue to grow or 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. Financial Statements follow. Radyne Corporation Condensed Consolidated Balance Sheets (in thousands, except share data) Unaudited June 30, December 31, 2006 2005 Assets Current assets: Cash and cash equivalents $24,886 $16,928 Accounts receivable - trade, net of allowance for doubtful accounts of $467 and $804, respectively 22,321 20,337 Cost in excess of billings 218 -- Inventories 21,655 18,057 Deferred tax assets 3,017 3,010 Income tax receivable 1,021 -- Prepaid expenses and other assets 702 864 Total current assets 73,820 59,196 Goodwill 29,950 30,333 Intangibles 6,137 6,706 Property and equipment, net 3,734 4,098 Other assets 254 295 Total Assets $113,895 $100,628 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $5,194 $5,054 Accrued expenses 9,045 9,045 Customer advance payments 1,615 2,319 Current portion of long-term debt 1,000 1,000 Income taxes payable -- 609 Total current liabilities 16,854 18,027 Long-term debt, less current portion 3,250 3,750 Deferred tax liability 382 752 Deferred rent 226 413 Accrued stock option compensation 6 46 Total liabilities 20,718 22,988 Stockholders' equity: Common stock; $.001 par value - authorized, 50,000,000 shares; issued and outstanding, 18,217,024 shares and 17,334,467 shares, respectively 18 17 Additional paid-in capital 73,155 63,171 Retained earnings 19,999 14,450 Other comprehensive income 5 2 Total stockholders' equity 93,177 77,640 Total Liabilities and Stockholders' Equity $113,895 $100,628 Radyne Corporation Condensed Consolidated Statements of Operations (in thousands, except share data) Unaudited Three Months Ended Six Months Ended June 30, June 30, 2006 2005 2006 2005 Net sales $34,633 $20,613 $65,826 $34,321 Cost of sales 20,203 10,973 38,506 17,556 Gross profit 14,430 9,640 27,320 16,765 Operating expenses: Selling, general and administrative 7,044 4,715 13,573 8,392 Research and development 2,617 1,832 5,340 3,330 Total operating expenses 9,661 6,547 18,913 11,722 Earnings from operations 4,769 3,093 8,407 5,043 Other (income) expense: Interest expense 68 54 146 80 Interest and other income (235) (238) (452) (488) Earnings before income taxes 4,936 3,277 8,713 5,451 Income tax expense 1,781 1,202 3,162 1,935 Net earnings $3,155 $2,075 $5,551 $3,516 Earnings per share: Basic $0.18 $0.12 $0.31 $0.21 Diluted $0.17 $0.12 $0.30 $0.20 Weighted average number of common shares outstanding: Basic 18,012 16,727 17,786 16,601 Diluted 18,800 17,410 18,674 17,337 Radyne Corporation Segment Reporting (in thousands) Unaudited Three months ended June 30, 2006 (in thousands) Satellite electronics and broadcast equipment Amplifiers Corporate Total Net sales $18,487 $16,146 $-- $34,633 Operating income 6,989 1,700 (3,920) 4,769 Depreciation and amortization $260 $604 $-- $864 Six months ended June 30, 2006 (in thousands) Satellite electronics and broadcast equipment Amplifiers Corporate Total Net sales $34,792 $31,034 $-- $65,826 Operating income 13,169 3,112 (7,874) 8,407 Depreciation and amortization $525 $1,233 $-- $1,758 Total assets $52,849 $61,046 $-- $113,895 DATASOURCE: Radyne Corporation 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/

Copyright