Radyne Corp (MM) (NASDAQ:RADN)
Historical Stock Chart
From Jul 2019 to Jul 2024
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/