Radyne Corp (MM) (NASDAQ:RADN)
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Radyne Reports First Half Earnings of $.26 Per Share
PHOENIX, July 28 /PRNewswire-FirstCall/ -- Radyne ComStream Inc. (Nasdaq:
RADN; Warrants: RADNW), today reported net earnings of $1.3 million, or $0.08
per fully diluted share, for its fiscal second quarter ended June 30, 2004
compared to earnings of $1.4 million, or $0.09 per fully diluted share for the
same quarter of 2003. Net sales for second quarter 2004 were $12.0 million
compared to second quarter 2003 net sales of $14.8 million. Net earnings as a
percentage of sales increased to 11% during second quarter of 2004 from 9%
during the second quarter of 2003. Earnings during the second quarter of 2003
reflected no income tax liability while the Company incurred taxes at a 6.5%
rate for the second quarter of 2004.
The lower sales for the quarter resulted in part from the previously announced
acceleration, at a customer's request, of a major order into the first quarter.
For the first six months of 2004, however, sales rose 6% to $27.1 million
compared to $25.7 million for the first six months of 2003. During the same
period, gross profit increased 36%. Gross margins during the second quarter of
2004 were 50% compared to gross margins of 45% for the same period in 2003.
The improvement reflects the Company's continuing development of new products
with lower manufacturing costs.
As a result, Radyne's fully diluted earnings per share for the first six months
of 2004 of 26 cents per share equals the earnings per share for all of 2003.
The Company incurred a small loss during the first half of 2003.
Also, during the quarter, sales backlog rose 26% to $5.8 million from $4.6
million at the end of the first quarter. Overall, the Company booked $13.3
million in orders during the second quarter compared to $11.6 million during
the second quarter of 2003. The increase in bookings reflects improving
strength in the Company's markets.
The Company's balance sheet strengthened with cash increasing to $36.0 million
from $30.1 million at the beginning of this year. Accounts Receivable declined
to $7.7 million or 59 days of sales outstanding compared to $9.8 million and 62
days at the end of 2003. Inventory increased to $9.5 million from $7.8 million
at the beginning of 2004 as the Company made planned components purchases to
assure customer delivery times.
"Our quote log continues to grow reflecting a return of the international
markets to a more normal level," commented Bob Fitting, CEO. "With our high
margins and new products, we believe that the improved market conditions will
result in growth and continued high profitability."
Radyne will be holding a conference call on Wednesday, July 28, 2004 at 4:30
p.m. EDT to discuss its second quarter 2004 financial results and operational
highlights. The call is open to the public. The domestic dial in number is
1-888-396-2384 and the international dial in number is 617-847-8711. The
conference will also be accessible via the Internet at http://www.radn.com/ and
http://www.fulldisclosure.com/.
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, is a supplier of HDTV and SDTV
encoding and transmission equipment. The Armer subsidiary provides innovative
solutions for the integration and installation of turnkey communications
systems. Radyne ComStream is headquartered in Phoenix, Arizona, has
manufacturing facilities in Phoenix and San Diego, and sales offices 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, 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 ComStream 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 ComStream 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," 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 improvement in the Company's quote
log, or, even if it does improve, that the improvement will translate to higher
backlog of orders to ship, (iii) expected new orders and, thus, higher margins
and profits, resulting from improved market conditions 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.
RADYNE COMSTREAM INC.
Consolidated Balance Sheets
(in thousands)
June 30, Dec. 31,
Assets 2004 2003
Unaudited
Current assets:
Cash and cash equivalents $36,035 $30,130
Accounts receivable - trade, net
of allowance for doubtful accounts
of $236 and $489, respectively 7,745 9,780
Inventories, net 9,513 7,766
Prepaid expenses and other assets 882 482
Total current assets 54,175 48,158
Property and equipment, net 1,853 2,269
Deposits 198 182
$56,226 $50,609
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of obligations
under capital leases $9 $14
Accounts payable, trade 1,664 2,180
Accrued expenses 3,493 3,513
Taxes payable 124 185
Customer advance payments 539 877
Total current liabilities 5,829 6,769
Deferred rent -- 11
Obligations under capital leases,
excluding current installments -- 6
Accrued stock option compensation 181 205
Total liabilities 6,010 6,991
Stockholders' equity:
Common stock 16 16
Additional paid-in capital 55,242 53,102
Accumulated deficit (5,042) (9,500)
Total stockholders' equity 50,216 43,618
$56,226 $50,609
Radyne ComStream Inc.
Consolidated Statements of Operations
(Unaudited, in thousands except share data)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Net sales $12,020 $14,792 $27,093 $25,672
Cost of sales 5,971 8,160 13,064 15,374
Gross profit 6,049 6,632 14,029 10,297
Operating expenses:
Selling, general and
administrative 3,462 3,702 6,872 7,153
Research and development 1,258 1,612 2,554 3,329
Total operating expenses 4,720 5,314 9,426 10,482
Earnings (loss) from
operations 1,329 1,318 4,603 (185)
Other (income) expense:
Interest expense 3 9 5 18
Interest and other income (89) (64) (172) (126)
Earnings (loss) before
income taxes 1,415 1,372 4,770 (76)
Income taxes 92 -- 312 --
Net earnings (loss) $1,323 $1,372 $4,458 $(76)
Earnings (loss) per share:
Basic $0.08 $0.09 $0.27 $(0.00)
Diluted $0.08 $0.09 $0.26 $(0.00)
Weighted average number
of common shares
outstanding:
Basic 16,475,517 15,310,185 16,410,220 15,309,512
Diluted 17,210,574 15,310,185 17,429,743 15,309,512
DATASOURCE: Radyne ComStream Inc.
CONTACT: Malcolm Persen, Chief Financial Officer of Radyne ComStream
Inc., +1-602-437-9620
Web site: http://www.radn.com/