PHOENIX, July 30, 2007 (PRIME NEWSWIRE) -- Radyne Corporation (Nasdaq:RADN) today reported a new company record for quarterly bookings of $40.9 million, a 20% increase compared to consolidated bookings of $34.1 million for the second quarter of 2006. The previous record was $36.3 million during the third quarter of 2005.
Sales and earnings per diluted share (EPS) for the second quarter were $34.3 million and $0.14 respectively. Comparable figures for 2006 were $34.6 million and $0.17 per share.
Bookings consisted of $23.3 million in new firm orders to Radyne's Xicom amplifier segment and $17.7 million to the company's satellite and broadcast electronics segment. Orders included previously announced business in both segments with two US-based direct to home (DTH) satellite providers. In addition to previously announced orders for the US Air Force's GMT program, Xicom received a further commitment for an additional $3.1 million for amplifiers for delivery in late 2007 and early 2008. Consolidated backlog at the end of the second quarter stood at $37.7 million compared to $33.2 million at June 30, 2006.
Sales, margins and earnings for the second quarter were impacted by the deferral of $455,000 of revenue which will be recognized in future periods. This amount reflects the relative fair value of extended warranties sold during the period. Reported earnings included equity compensation expense of $590,000 during the second quarter of 2007 and $565,000 during the second quarter of 2006 which had the effect of reducing EPS by $0.02 in both quarters.
For the first half of 2007, Radyne reported sales of $64.0 million with earnings of $0.24 per diluted share compared to $65.8 million and $0.30 for the equivalent period of 2006.
"We are gratified by the increasing strength of our sales funnel," commented Myron Wagner, CEO. "All segments of our business reported increased bookings and sales during the quarter which coupled with typical seasonal strength, new Xicom and Tiernan products and recent enhancements to our sales force, give Radyne momentum to achieving its targets for the second half of the year."
At the end of the second quarter, Radyne's cash balance was $33.3 million from $27.5 million at the end of 2006. The Company's consolidated accounts receivable declined to $24.7 million compared to $27.8 million at the beginning of the year. Consolidated inventory was $24.5 million compared to $21.1 million at the end of 2006.
Radyne recently announced that it has entered into a definitive agreement to acquire AeroAstro, Inc of Ashburn, VA for $18.5 million in cash, stock and the assumption of debt. AeroAstro designs and builds small and microsatellites and related technologies, AeroAstro's experience spans a range of capabilities - from ultra-low-cost R&D programs using commercial components, to high-reliability programs using space-qualified components. In addition to spacecraft equipment, AeroAstro developed and operates the Sensor Enabled Notification System (SENS), which provides cost effective satellite based low data rate communications and asset tracking throughout the United States, North America, Europe, Australia, the Middle East, Asia, and South America. Radyne expects the deal to close within the next few days.
Radyne will be holding a conference call today, Monday, July 30, 2007 at 4:30 p.m. EDT to discuss its second quarter 2007 financial results and operational highlights. The call is open to the public. The domestic dial in number is 1-877-502-9272 (U.S./Canada) and the international dial in number is 913-981-5581. The conference will also be accessible via webcast at http://investors.radn.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, except share data)
Unaudited
June 30, December 31,
2007 2006
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 33,269 $ 27,540
Accounts receivable - trade,
net of allowance for doubtful
accounts of $436 and $266,
respectively 24,697 27,828
Inventories 24,500 21,106
Deferred tax assets 3,537 2,593
Prepaid expenses and other assets 820 1,196
--------- ---------
Total current assets 86,823 80,263
Goodwill 29,950 29,950
Intangibles 4,998 5,567
Deferred tax assets, net 13 190
Property and equipment, net 3,630 3,822
Other assets 243 212
--------- ---------
Total Assets $125,657 $120,004
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,874 $ 5,959
Accrued expenses 8,039 9,994
Customer advance payments 594 1,057
Income taxes payable 1,523 981
--------- ---------
Total current liabilities 17,030 17,991
Deferred rent and other 124 148
Total liabilities 17,154 18,139
--------- ---------
Stockholders' equity:
Common stock; $.001 par
value - authorized, 50,000,000
shares; issued and outstanding,
18,473,722 shares and
18,351,576 shares, respectively 18 18
Additional paid-in capital 77,053 75,500
Retained earnings 31,394 26,315
Other comprehensive income 38 32
--------- ---------
Total stockholders' equity 108,503 101,865
--------- ---------
Total Liabilities and
Stockholders' Equity $125,657 $120,004
========= =========
Radyne Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Unaudited
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2007 2006 2007 2006
------- ------- ------- -------
Net sales $34,317 $34,633 $63,967 $65,826
Cost of sales 20,519 20,203 38,038 38,506
------- ------- ------- -------
Gross profit 13,798 14,430 25,929 27,320
Operating expenses:
Selling, general
and administrative 7,069 7,044 13,624 13,573
Research and
development 3,004 2,617 5,870 5,340
------- ------- ------- -------
Total operating
expenses 10,073 9,661 19,494 18,913
------- ------- ------- -------
Earnings from
operations 3,725 4,769 6,435 8,407
Other (income)
expense:
Interest expense 6 68 10 146
Interest and
other income (480) (235) (884) (452)
------- ------- ------- -------
Earnings before
income taxes 4,199 4,936 7,309 8,713
Income tax expense 1,550 1,781 2,743 3,162
------- ------- ------- -------
Net earnings $ 2,649 $ 3,155 $ 4,566 $ 5,551
======= ======= ======= =======
Earnings per share:
Basic $ 0.14 $ 0.18 $ 0.25 $ 0.31
======= ======= ======= =======
Diluted $ 0.14 $ 0.17 $ 0.24 $ 0.30
======= ======= ======= =======
Weighted average
number of common
shares outstanding:
Basic 18,400 18,012 18,385 17,786
======= ======= ======= =======
Diluted 18,815 18,800 18,832 18,674
======= ======= ======= =======
Radyne Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)
Unaudited
Six Months Ended June 30,
--------------------------
2007 2006
--------- ---------
Cash flows from operating
activities:
Net earnings $ 4,566 $ 5,551
Adjustments to reconcile
net earnings to net cash
provided by operating activities:
Gain on disposal of property
and equipment (71) (203)
Provision for bad debt 90 152
Deferred income taxes (544) 335
Depreciation and
amortization 1,789 1,758
Tax benefit from stock plan
dispositions 51 1,199
Amortization of stock
compensation 589 1,128
Increase (decrease) in cash
resulting from changes in:
Accounts receivable 3,042 (2,136)
Cost in excess of billings -- (218)
Inventories (3,394) (3,598)
Income tax receivable -- (1,021)
Prepaids and other assets 345 194
Accounts payable 915 (83)
Accrued expenses (1,979) (188)
Income taxes payable 814 (609)
Customer advance payments (463) (704)
Accrued stock option compensation -- (40)
--------- ---------
Net cash provided by
operating activities 5,750 1,517
--------- ---------
Cash flows from investing
activities:
Acquisition of Xicom, net
of cash acquired -- (104)
Capital expenditures (1,057) (913)
Proceeds from sales of property
and equipment 101 298
--------- ---------
Net cash used in
investing activities (956) (719)
--------- ---------
Cash flows from financing activities:
Payment of notes payable -- (500)
Exercise of stock options 292 5,875
Net proceeds from sales of
common stock to employees 595 610
Tax benefit from stock
plan dispositions 43 1,172
--------- ---------
Net cash provided by
financing activities 930 7,157
--------- ---------
Effects of exchange rate changes
on cash and cash equivalents 5 3
--------- ---------
Net increase in cash and cash equivalents 5,729 7,958
--------- ---------
Cash and cash equivalents,
beginning of year 27,540 16,928
--------- ---------
Cash and cash equivalents,
end of quarter $33,269 $24,886
========= =========
Supplemental disclosures of cash
flow information:
Cash paid for interest $ 10 $ 151
========= =========
Cash paid for taxes $ 2,377 $ 2,085
========= =========
Supplemental disclosures of
non-cash flow information:
Adjustments for Xicom acquisition
accounting $ -- $ 488
========= =========
Deferred tax asset change due to
adoption of FIN 48 $ (514) $ --
========= =========
Radyne Corporation
Segment Reporting
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 (expense) 6,989 1,700 (3,920) 4,769
==================================================
Depreciation
and amortization $ 260 $ 604 $ -- $ 864
==================================================
Three months ended June 30, 2007
(in thousands)
Satellite
electronics and
broadcast
equipment Amplifiers Corporate Total
--------------------------------------------------
Net sales $ 17,072 $ 17,245 $ -- $ 34,317
Operating
income (expense) 3,741 1,703 (1,719) 3,725
==================================================
Depreciation
and amortization $ 261 $ 634 $ -- $ 895
==================================================
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 (expense) 13,169 3,112 (7,874) 8,407
==================================================
Depreciation
and amortization $ 525 $ 1,233 $ -- $ 1,758
==================================================
Total assets $ 52,849 $ 61,046 $ -- $113,895
==================================================
Six months ended June 30, 2007
(in thousands)
Satellite
electronics and
broadcast
equipment Amplifiers Corporate Total
--------------------------------------------------
Net sales $ 31,098 $ 32,869 $ -- $ 63,967
Operating
income (expense) 6,123 3,721 (3,410) 6,435
==================================================
Depreciation
and amortization $ 529 $ 1,260 $ -- $ 1,789
==================================================
Total assets $ 62,216 $ 63,441 $ -- $125,657
==================================================
RADN-PR