Radyne ComStream Reports $0.18 EPS on 39% Increase in Sales
28 April 2004 - 8:30PM
PR Newswire (US)
Radyne ComStream Reports $0.18 EPS on 39% Increase in Sales
PHOENIX, April 28 /PRNewswire-FirstCall/ -- Radyne ComStream Inc.
(Nasdaq: RADN; Warrants: RADNW), today reported net earnings of
$3.1 million, or $0.18 per fully diluted share, for its fiscal
first quarter ended March 31, 2004 compared to a net loss of $1.4
million, or $(0.09) per fully diluted share for the same quarter of
2003. Net sales for first quarter 2004 were up 39% to $15.1 million
compared to first quarter 2003 net sales of $10.9 million.
Increased sales were due in part to improved manufacturing cycle
time and the accelerated shipment of product originally scheduled
for the second quarter, due to customer request. Higher gross
margins and earnings for first quarter 2004 were due to a larger
share of sales from the new product lines and by lower operating
expenses compared to first quarter 2003 which also included
inventory write-downs. Gross margins increased to 53% of net sales
compared to 34% for the same quarter of 2003 as a result of lower
production costs for the new products, greater sales to absorb
overhead costs, and approximately $550,000 of inventory write-downs
during the 2003 period. Operating expenses decreased 9% in the
current period compared to first quarter 2003 due to a reduction in
research and development expenses. First quarter earnings were
taxed at an effective rate of 6.5% through the use of net operating
loss carryforward amounts from prior periods. The Company's balance
sheet continues to grow stronger with cash on hand increasing to
$32.9 million from $20 million at the same time last year, and from
$30.1 million at the beginning of this year. Shareholder's equity
has increased approximately $4.6 million with about $1.2 million of
that amount coming from employee investment in the company through
employee stock purchase and incentive stock option plans. There are
no intangibles on the balance sheet. "Our new products continue to
produce outstanding margins," commented Bob Fitting, CEO. "With the
HDTV broadcast products that are expected to ship shortly, we
believe we will be able to continue to generate high margins. Our
new HE-4000 HDTV Encoder was a huge success at the National
Association of Broadcasters Convention last week and we expect a
number of orders will result from the show." Radyne will be holding
a conference call on Wednesday, April 28, 2004 at 2:00 p.m. EDT to
discuss its first quarter 2004 financial results and operational
highlights. The call is open to the public. The domestic dial in
number is 1-877-407-9205 and the international dial in number is
201-689-8054. It will also be accessible via the Internet at
http://www.radn.com/ and http://www.vcall.com/. For those unable to
participate at the designated time, a replay will be available for
30 days following the call at both of these locations. About Radyne
ComStream Radyne ComStream 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
the Tiernan subsidiary (http://www.tiernan.com/), is a supplier of
HDTV and SDTV encoding and transmission equipment. The Armer
subsidiary (http://www.armercom.com/) provides innovative solutions
for the integration and installation of turnkey communications
systems. The company has offices in the U.S. located in Phoenix,
San Diego and Boca Raton, and internationally in Singapore,
Beijing, Jakarta and London. 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/.
Contact: Malcolm Persen, CFO, 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 ComStream claims the protection of
the safe-harbor for forward-looking statements contained in the
Reform Act. These forward-looking statements are often
characterized by the terms "may," "believes," "projects,"
"expects," or "anticipates," and do not reflect historical facts.
Specific forward-looking statements contained in this press release
include, but are not limited to: (i) expected future high margins
on new products, since there is no guarantee that current sales
levels of those products will continue or, that if they do, that
the margins will remain high; (ii) continued employee investment in
the company, (iii) expected new orders resulting from our
participation in the National Association of Broadcasters
Convention and (iv) our ability to utilize net operating loss
carryforward amounts to offset future taxable amounts.
Forward-looking statements involve risks, uncertainties and other
factors that may cause actual results, performance or achievements
of Radyne ComStream and its subsidiaries to be materially different
from those expressed or implied by such forward-looking statements.
Factors that could affect Radyne ComStream's results and cause them
to materially differ from those contained in the forward-looking
statements contained herein include, without limitation: (i)
expected future high margins on new products, since there is no
guarantee that current sales levels of those products will continue
or, that if they do, that the margins will remain high; (ii)
continued employee investment in the company, (iii) expected new
orders resulting from our participation in the National Association
of Broadcasters Convention and (iv) our ability to utilize net
operating loss carryforward amounts to offset future taxable
amounts. Other factors that may affect forward-looking statements
and the Company's business generally include but are not limited
to: * Prospects of the international markets and global economy
given that Radyne ComStream depends heavily on international sales.
* A downturn in the evolving telecommunications and Internet
industries. * Risk factors and cautionary statements made in Radyne
ComStream's Annual Report on Form 10-K for the period ended
December 31, 2003. * The effect that acts of international
terrorism may have on Radyne ComStream's ability to ship products
abroad. * Other factors that Radyne ComStream is currently unable
to identify or quantify, but may exist in the future.
Forward-looking statements speak only as of the date the statement
was made. Radyne ComStream does not undertake and specifically
declines any obligation to update any forward-looking statements.
Financial Statements follow. RADYNE COMSTREAM INC. Consolidated
Balance Sheets (in thousands) Assets Mar. 31, 2004 Dec. 31, 2003
Current assets: Cash and cash equivalents $32,931 $30,130 Accounts
receivable - trade, net of allowance for doubtful accounts of $347
and $489, respectively 10,651 9,780 Inventories, net 8,692 7,766
Prepaid expenses and other assets 481 482 Total current assets
52,755 48,158 Property and equipment, net 2,016 2,269 Deposits 179
182 $54,950 $50,609 Liabilities and Stockholders' Equity Current
liabilities: Current installments of obligations under capital
leases $12 $ 14 Accounts payable, trade 2,110 2,180 Accrued
expenses 3,661 3,513 Taxes payable 124 185 Customer advance
payments 599 877 Total current liabilities 6,506 6,769 Deferred
rent -- 11 Obligations under capital leases, excluding current
installments 3 6 Accrued stock option compensation 186 205 Total
liabilities 6,695 6,991 Stockholders' equity: Common stock 16 16
Additional paid-in capital 54,604 53,102 Accumulated deficit
(6,365) (9,500) Total stockholders' equity 48,255 43,618 $54,950
$50,609 Radyne ComStream Inc. Consolidated Statements of Operations
Three Months Ended March 31, 2004 2003 Net sales $15,073 $10,880
Cost of sales 7,093 7,214 Gross profit 7,980 3,666 Operating
expenses: Selling, general and administrative 3,409 3,451 Research
and development 1,296 1,717 Total operating expenses 4,705 5,168
Earnings (loss) from operations 3,275 (1,502) Other (income)
expense: Interest expense 2 8 Interest and other income (82) (62)
Earnings (loss) before income taxes 3,355 (1,448) Income taxes 220
-- Net earnings (loss) $3,135 $(1,448) Earnings (loss) per share:
Basic $0.19 $(0.09) Diluted $0.18 $(0.09) Weighted average number
of common shares outstanding: Basic 16,344,922 15,308,832 Diluted
17,658,754 15,308,832 DATASOURCE: Radyne ComStream Inc. CONTACT:
Malcolm Persen, CFO of Radyne ComStream Inc., +1-602-437-9620 Web
site: http://www.radn.com/
Copyright