PHOENIX, April 23, 2007 (PRIME NEWSWIRE) -- Radyne Corporation (Nasdaq:RADN) today reported quarterly bookings of $35.4 million, the second strongest bookings quarter in the company's history. Bookings for the first quarter of 2006 were $32.7 million. Backlog at quarter end stood at $31.1 million.
For the first quarter of 2007, Radyne reported $29.7 million in sales with net earnings of $1.9 million. This compares to $31.2 million in sales and $2.4 million in net earnings for the equivalent period of 2006. Earnings per diluted share ("EPS") for the quarter were $0.10 per share compared to $0.13 for the first quarter of 2006. Reported earnings included equity compensation expense of $288,000 and $563,000 which had the effect of reducing EPS by $0.01 and $0.02 during the first quarter of 2007 and 2006, respectively.
The increase in bookings resulted from increased order rates for the Company's Xicom satellite amplifiers and Tiernan HDTV encoders and decoders. As previously announced, Xicom received a number of orders for Ka-band amplifiers, an emerging market where it has a leading market share.
"Xicom continues its leadership position in new products, market interest and resultant new orders," commented Myron Wagner, CEO. "We are executing against our strategy for 2007: we are seeing results from our efforts to focus more resources on selling our new line of HDTV equipment, new product development programs are on plan in all of our businesses, and cash generation remains strong. We believe we remain on track for a strong second half of the year."
At the end of the quarter, Radyne's cash balance increased to $29.4 million from $27.5 million at the end of 2006. The Company's consolidated accounts receivable declined to $22.4 million compared to $27.8 million at the beginning of the year. Consolidated inventory was $24.9 million compared to $21.1 million at the end of 2006. The increase in inventory resulted from seasonal increases of materials to assure timely delivery of new orders received during the quarter.
Radyne will be holding a conference call today, Monday, April 23, 2007 at 4:30 p.m. EDT to discuss its first quarter 2007 financial results and operational highlights. The call is open to the public. The domestic dial in number is 1-866-362-4666 and the international dial in number is +1-617-597-5313. The conference will also be accessible via the Internet at http://investors.radn.com and 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 California, 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 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)
Unaudited
March 31, December 31,
2007 2006
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 29,433 $ 27,540
Accounts receivable - trade, net of
allowance for doubtful accounts of $240 and
$266, respectively 22,351 27,828
Cost in excess of billings 258
Inventories 24,892 21,106
Deferred tax assets 3,412 2,593
Income tax receivable -- --
Prepaid expenses and other assets 1,079 1,196
-------- --------
Total current assets 81,425 80,263
Goodwill 29,950 29,950
Intangibles 5,282 5,567
Deferred tax assets, net 313 190
Property and equipment, net 3,775 3,822
Other assets 209 212
-------- --------
Total Assets $120,954 $120,004
======== ========
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $ 6,618 $ 5,959
Accrued expenses 6,968 9,994
Customer advance payments 859 1,057
Income taxes payable 1,463 981
-------- --------
Total current liabilities 15,908 17,991
Deferred rent and other 159 148
-------- --------
Total liabilities 16,067 18,139
-------- --------
Stockholders' equity:
Common stock; $.001 par value - authorized,
50,000,000 shares; issued and outstanding,
18,381,401shares and 18,351,576 shares,
respectively 18 18
Additional paid-in capital 76,096 75,500
Retained earnings 28,746 26,315
Other comprehensive income 27 32
-------- --------
Total stockholders' equity 104,887 101,865
-------- --------
Total Liabilities and Stockholders' Equity $120,954 $120,004
======== ========
Radyne Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Unaudited
Three Months Ended
March 31,
--------------------
2007 2006
-------- --------
Net sales $ 29,650 $ 31,194
Cost of sales 17,518 18,304
-------- --------
Gross profit 12,132 12,890
-------- --------
Operating expenses:
Selling, general and administrative 6,540 6,529
Research and development 2,866 2,724
-------- --------
Total operating expenses 9,406 9,253
-------- --------
Earnings from operations 2,726 3,637
Other (income) expense:
Interest expense 4 77
Interest and other income (389) (217)
-------- --------
Earnings before income taxes 3,111 3,777
Income tax expense 1,193 1,381
-------- --------
Net earnings $ 1,918 $ 2,396
======== ========
Earnings per share:
Basic $ 0.10 $ 0.14
======== ========
Diluted $ 0.10 $ 0.13
======== ========
Weighted average number of common
shares outstanding:
Basic 18,369 17,557
======== ========
Diluted 18,848 18,654
======== ========
Radyne Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)
Unaudited
Three Months Ended
March 31,
------------------
2007 2006
------- -------
Cash flows from operating activities:
Net earnings $ 1,918 $ 2,396
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Gain on disposal of property and equipment -- (148)
Provision for bad debt (26) 182
Deferred income taxes (718) 48
Depreciation and amortization 894 894
Tax benefit from stock plan dispositions 27 546
Amortization of stock compensation 288 563
Increase (decrease) in cash, excluding effects
of acquisition, resulting from changes in:
Accounts receivable 5,503 1,952
Cost in excess of billings (258) --
Inventories (3,786) (4,028)
Income tax receivable -- --
Prepaids and other assets 120 27
Accounts payable 660 1,131
Accrued expenses (3,015) (1,569)
Income taxes payable 859 (504)
Customer advance payments (199) 635
Accrued stock option compensation -- (40)
------- -------
Net cash provided by operating activities 2,267 2,085
------- -------
Cash flows from investing activities:
Capital expenditures (581) (554)
Proceeds from sales of property and equipment 19 179
------- -------
Net cash used in investing activities (562) (375)
------- -------
Cash flows from financing activities:
Payment of notes payable -- (250)
Exercise of stock options 175 2,484
Tax benefit from stock plan dispositions 19 781
------- -------
Net cash provided by financing activities 194 3,015
------- -------
Effects of exchange rate changes on
cash and cash equivalents (6) (10)
------- -------
Net increase (decrease) in cash
and cash equivalents 1,893 4,715
------- -------
Cash and cash equivalents, beginning of year 27,540 16,928
------- -------
Cash and cash equivalents, end of quarter $29,433 $21,643
======= =======
Supplemental disclosures of cash flow information:
Cash paid for interest $ 5 $ 77
======= =======
Cash paid for taxes $ 1,006 $ 510
======= =======
Radyne Corporation
Segment Reporting
Unaudited
Three months ended March 31, 2007
(in thousands)
Satellite
electronics
and broadcast
equipment Amplifiers Corporate Total
---------- ---------- --------- ---------
Net sales $ 14,026 $ 15,624 $ -- $ 29,650
Operating
income
(expense) 4,048 2,018 (3,340) 2,726
======== ========== ======== =========
Depreciation
and amortization $ 268 $ 625 $ -- $ 894
======== ========== ======== =========
Total assets $ 58,829 $ 62,126 $ -- $ 120,954
======== ========== ======== =========
Three months ended March 31, 2006
(in thousands)
Satellite
electronics
and broadcast
equipment Amplifiers Corporate Total
---------- ---------- --------- ---------
Net sales $ 16,305 $ 14,889 $ -- $ 31,194
Operating
income
(expense) 6,180 1,411 (3,954) 3,637
======== ========== ======== =========
Depreciation
and amortization $ 265 $ 629 $ -- $ 894
======== ========== ======== =========
Total assets $ 46,647 $ 60,237 $ -- $ 106,885
======== ========== ======== =========
RADN-PR