EX-99.1 2 rc2096ex991.txt EXHIBIT 99.1 RADYNE COMSTREAM REPORTS RECORD BOOKINGS AND 4TH QUARTER EARNINGS OF $0.18 PER SHARE PR Newswire -- February 17, 2005 PHOENIX, Feb. 17 /PRNewswire-FirstCall/ -- Radyne ComStream (Nasdaq: RADN) today reported net earnings of $3.0 million, or $0.18 per fully diluted share, for the fourth quarter ended December 31, 2004 compared to net earnings for fourth quarter 2003 of $2.6 million or $0.16 per fully diluted share. Net sales for the three-month period ended December 31, 2004 were $16.8 million compared to $16.5 million for the quarter ended December 31, 2003. Gross profit increased in the current period to $9.5 million from $8.9 million in the prior period while operating expenses increased to $6.4 million in the current period from $4.8 million for the same quarter last year. The Company received a record $20.8 million in orders and ended 2004 with $9.6 million in backlog compared to $15.5 million in orders and a backlog of $8.0 million for the equivalent period of 2003. Revenues were $56.6 million for the year ended December 31, 2004, compared with $58.0 million for 2003. Gross profit for 2004 was $30.1 million compared to $26.4 million in 2003, while operating expenses rose to $20.8 million from $19.9 million for 2003. Net income was $13.5 million or $0.79 per fully diluted share for the year ended December 31, 2004 compared with $4.1 million, or $0.26 per fully diluted share for 2003. The 2004 results include a tax benefit of $3.6 million which includes $4.1 million or $ 0.24 per fully diluted share due primarily to the reduction of a valuation allowance against deferred tax assets arising from the Company's net operating loss carryforwards and unused tax credits. "The year ended with a strong quarter reflecting Radyne's increasing strength in its satellite communications and HDTV encoding markets," commented Bob Fitting, CEO. "New product introductions and continued control of our manufacturing operations has yielded improvements in our gross margin. We believe that new products to be introduced at the Satellite 2005 trade show next month will continue the company on its growth path." As of December 31, 2004, the Company's Balance Sheet continued to strengthen with $39.3 million in cash compared to $30.1 million for year-end 2003. The increase in cash was primarily from net earnings of $13.5 million which was partially offset by non cash operating activities. Accounts receivable for 2004 were $9.7 million compared to $9.8 million for 2003. Inventories rose to $8.1 million at the end of 2004 from $7.8 million at the end of the prior year. The Company also announced that, prior to their expiration, it received 310,571 of its warrants for exercise. A like number of new common shares will be issued in consideration of the aggregate exercise amount of $2,717,496. About Radyne ComStream Radyne ComStream designs, manufactures, sells, integrates and installs products and systems 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. Radyne ComStream is headquartered in Phoenix, Arizona, has manufacturing facilities in Phoenix and San Diego, and sales offices in Boca Raton, Florida, Singapore, Beijing, Jakarta, London and Amsterdam. The Company also has sales and/or service centers in Rio de Janeiro and Bangalore. For more information visit our web site at 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," "intends" or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include expectations for continued growth and improvement in gross margin associated with product introductions. Further, 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; * Changes in 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; * The potential lack of market approval and acceptance of our new products; * The impact of potential production, quality control and other technical problems associated with our new products; * Prospects of the international markets and global economy given that the Company depends heavily on international sales; * The effect that acts of international terrorism may have on the Company's ability to ship products abroad; * The potential for another downturn in the evolving telecommunications and Internet industries; * Other risks discussed from time to time in the Company's SEC filings and reports; and * Other factors that Radyne ComStream is currently unable to identify or quantify, but may exist in the future. 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 ComStream 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 COMSTREAM INC. Consolidated Balance Sheets (In thousands) December 31, ------------------------ 2004 2003 --------- --------- Unaudited Assets Current assets: Cash and cash equivalents $ 39,300 $ 30,130 Accounts receivable, net 9,728 9,780 Inventories 8,132 7,766 Deferred tax assets 2,218 -- Prepaid expenses and other assets 846 482 Total current assets 60,224 48,158 Deferred tax asset, net 3,445 -- Property and equipment, net 1,593 2,269 Other assets 154 182 $ 65,416 $ 50,609 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,566 $ 2,181 Accrued expenses 4,835 3,273 Income taxes payable 242 185 Customer advance payments 149 877 Total current liabilities 6,792 6,516 Long-term obligations 284 270 Accrued stock option compensation 147 205 Total liabilities 7,223 6,991 Stockholders' equity: Common stock 16 16 Additional paid-in capital 54,414 53,102 Retained earnings (accumulated deficit) 3,763 (9,500) Total stockholders' equity 58,193 43,618 $ 65,416 $ 50,609 RADYNE COMSTREAM INC. Consolidated Statements of Operations (in thousands, except per share data)
Three Months Ended Years Ended December 31, December 31, ------------------------ ------------------------ 2004 2003 2004 2003 ---------- ---------- ---------- ---------- Unaudited Unaudited Unaudited Net Sales $ 16,778 $ 16,528 $ 56,578 $ 57,991 Cost of Sales 7,238 7,610 26,435 31,640 Gross Profit 9,540 8,918 30,143 26,351 Operating expenses: Selling, general and administrative 5,025 3,429 15,420 13,559 Research and development 1,365 1,412 5,330 6,294 Total Operating Expense 6,390 4,841 20,750 19,853 Earnings from Operations 3,150 4,077 9,393 6,498 Other (income) expense: Interest expense 15 6 29 28 Interest and other income (187) (73) (492) (254) Earnings before income taxes 3,322 4,144 9,856 6,724 Income taxes (benefit) 346 1,567 (3,644) 2,599 Net earnings $ 2,976 $ 2,577 $ 13,500 $ 4,125 Earnings per share: Basic $ 0.18 $ 0.16 $ 0.83 $ 0.27 Diluted $ 0.18 $ 0.16 $ 0.79 $ 0.26 Weight average number of common shares outstanding: Basic 16,222 15,874 16,357 15,488 Diluted 16,856 16,607 17,136 15,718
SOURCE Radyne ComStream -0- 02/17/2005 /CONTACT: Malcolm Persen, Chief Financial Officer of Radyne ComStream, +1-602-437-9620/ /Web site: http://www.radn.com /