EX-99 2 r8k72705ex991.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 ADDVANTAGE TECHNOLOGIES GROUP, INC. REPORTS THIRD QUARTER FISCAL 2005 FINANCIAL RESULTS Broken Arrow, Oklahoma, July 27, 2005--ADDvantage Technologies Group, Inc. (AMEX:AEY), a Master Stocking Distributor for Scientific-Atlanta and Motorola broadband and transmission products, today announced its financial results for its third fiscal quarter that ended June 30, 2005. For the third quarter of 2005, the Company reported net sales of $12.1 million compared to $12.7 million for the same period in fiscal 2004. Net income attributable to common stock for the third quarter was $1.2 million, or $0.12 per diluted share, compared to $1.4 million, or $0.12 per diluted share, for the same period in fiscal 2004. Net revenues for the first three quarters of fiscal 2005 totaled $34.2 million compared to $35.6 million for the same period in fiscal 2004. Net income attributable to common stock for the first three quarters of fiscal 2005 was $3.4 million, or $0.34 per diluted share, compared to $3.7 million, or $0.33 per diluted share, for the same period in fiscal 2004. "Our recent announcement that Scientific-Atlanta has appointed our subsidiary, TULSAT, as an exclusive distributor of its System Amplifier III RF platform for both North America and Latin America has resulted in increased deliveries of these products," commented Ken Chymiak, President and CEO. "Scientific-Atlanta has informed their customers that Tulsat will be the exclusive source of these products and all purchases should be placed directly with Tulsat. As a VAR (Value Added Reseller) of both Scientific-Atlanta and Motorola broadband and transmission products, our subsidiaries have the opportunity to quote large projects that can be delivered from our inventory." "I am very pleased that earnings per diluted share totaled $0.34 for the nine months of 2005 compared to $0.33 for the same period in 2004," said David Chymiak, Chairman of the Board. ADDVANTAGE TECHNOLOGIES GROUP, INC. (AMEX: AEY), through its subsidiaries, TULSAT, Lee Enterprise, NCS Industries, ComTech Services, Tulsat-Texas, and Tulsat-Atlanta distribute new and refurbished cable television ("CATV") equipment, and operate repair centers at each location. TULSAT is a Value Added Reseller ("VAR") and a Master Distributor for Scientific-Atlanta legacy products and is a distributor for most of their other products. NCS Industries is a VAR for Motorola broadband and transmission products and national distributor for PROMAX test equipment. The Company is also a distributor for other companies such as Blonder-Tongue, Standard Electronics, Videotek, Quintech Electronics, and Corning Gilbert, among others. In addition to selling new, excess and refurbished cable television equipment throughout North America and other regions, they operate repair centers specializing in many different Original Equipment Manufacturer ("OEM") products. TULSAT is also a Third Party Authorized Repair Center for select Scientific-Atlanta products and ComTech Services is an authorized Alpha warranty repair center. For more information, please visit the corporate web site at www.addvantagetech.com or contact the Company directly at 918-251-9121. The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company's reports and documents filed from time to time with the Securities and Exchange Commission. ADDvantage Technologies Group, Inc. Statements of Operations (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2005 2004 2005 2004 Revenues $12,093,891 $12,682,449 $34,249,902 $35,628,990 Operating Income $ 2,562,093 $ 2,606,636 $ 6,925,209 $ 7,261,314 Net Income $ 1,446,426 $ 1,715,232 $ 4,049,351 $ 4,632,028 Net Income Attributable to Common Stock $ 1,236,426 $ 1,405,232 $ 3,419,351 $ 3,702,028 Net Income Per Share of Common Stock Basic $ 0.12 $ 0.14 $ 0.34 $ 0.37 Diluted $ 0.12 $ 0.12 $ 0.34 $ 0.33 Shares Used in Computing Net Income Per Share: Basic 10,070,172 10,057,172 10,065,685 10,034,700 Diluted 10,097,155 12,130,854 10,109,744 12,114,433 Company Contact: Ken Chymiak (9l8) 25l-2887 David Chymiak (9l8) 25l-2887 Dee Cooper (9l8) 25l-9l2l