Great earnings...
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Wednesday July 26, 6:01 am Eastern Time
Company Press Release
SOURCE: Radyne ComStream Inc.
Record Second Quarter Earnings for Radyne ComStream
- Revenues Increase 38% From '99
- Record Earnings of $0.15 Per Share, Exceeding Analysts' Estimates
- Record EBITDA Grows 79%
PHOENIX, July 26 /PRNewswire/ -- Radyne ComStream (Nasdaq: RADN; RADNW) today announced record second quarter results. Driven by sales growth
and improving margins, the company achieved record earnings and EBITDA performance levels.
The company reported that revenues for its second quarter of fiscal 2000, ended June 30, were $17.9 million, compared to $12.9 million for the second quarter of
fiscal 1999, a 38% increase.
Earnings for the second quarter of fiscal 2000 were $2.5 million, or $0.17 per share, $0.15 diluted, compared with $422K, or $0.07 per share, $0.06 diluted, for
the same period in fiscal 1999.
Bookings continue on pace to set another annual record. New orders booked during the first half of 2000 reached $38 million, up 49% over last year's record of
$25.5 million while backlog (the level of unfilled-orders-to-ship) increased 62% to $18 million for the current period from $11 million at June 30, 1999.
``Our business remains robust and we are in an excellent position through our worldwide sales force to continue delivering internet infrastructure and telephone
solutions for the global satellite communications marketplace,'' said Bob Fitting, CEO of Radyne ComStream. ``For the first half of 2000 our sales are up 30% over
the same period in 1999, EBITDA growth of 91% signifies improving profitability levels, and we finished the period with $22.8 million in cash and marketable
securities.''
Record profitability
Reporting record EBITDA of $3.0 million for the quarter, versus $1.7 million for the same period a year ago -- a 79% improvement, Mr. Fitting stated: ``We will
continue to regard EBITDA as a key indicator of our financial health.''
Strong balance sheet
Continuing his comments on the company's fiscal status, Mr. Fitting said: ``Our balance sheet is very healthy. We have no long term debt, and a very strong cash
position of $22.8 million.''
Quarterly Highlights
During the second quarter of 2000, Radyne ComStream asserted its position as one of the fastest growing and most profitable players in the global marketplace for
the ground based portion of satellite communications systems with record setting gains in several key areas of its business as follows:
-- Radyne ComStream experienced continued significant growth for its
Internet-over-Satellite products. These broadband products are
enabling the high-speed delivery of internet content via satellite.
-- Announced the receipt of several significant contract awards
including service to a consortium of governmental agencies and
educational institutions consisting of the United States Geologic
Survey (USGS), the United Nations agency UNAVCO, and Massachusetts
Institute of Technology (MIT). This customer is building a network
of remote sensing and reporting stations which will be used to report
seismic tectonic and tsunami activity thus providing an "early
warning" system for earthquakes and "tidal waves."
-- Other contracts include a major international common carrier for high
speed, satellite broadband equipment to transport the Olympic
programming from Sydney; communications equipment for the United
States government, a continuation of an ongoing program; and a
contract to build the first part of an IP based multicasting system
to provide satellite-delivered financial information for a Chinese
stock exchange.
These developments are significant not only for their size, but because they validate the company's strategic direction as it continues to successfully seek out
innovative, high-growth markets for the company's products.
About Radyne ComStream
Radyne ComStream designs, manufactures, and markets satellite Internet-infrastructure equipment as well as satellite broadband modems, multicasting receivers,
converters and ancillary products for digital TV, data and telephone service.
The company has offices in the U.S. located in Phoenix, San Diego and Boca Raton, and internationally in Singapore, Beijing, Jakarta and London. The company
also has sales and/or service centers in New York, Rio de Janeiro, Bangalore, Shanghai and Moscow.
For more information, contact Radyne ComStream Inc., 3138 East Elwood St., Phoenix, AZ 85034, USA. TEL: 602/437-9620, FAX: 602/437-4811; e-mail:
info@radynecomstream.com; or visit our web site at www.radynecomstream.com.
NOTE TO PRESS RELEASE
(1) The statements in this press release that are not historical facts, including most importantly, those statements preceded by, or that include, the words
``may,'' ``believes,'' ``projects,'' ``expects,'' ``anticipates'' or the negation thereof, or similar expressions, constitute ``forward-looking statements'' within the
meaning of the Private Securities Litigation Reform Act of 1995 (the ``Reform Act''). These statements may include, but are not limited to, projections of
revenues, income or loss, estimates of capital expenditures, plans for future operations, products or services, and financing needs or plans, as well as
assumptions relating to those matters. For all ``forward-looking statements'' Radyne ComStream claims the protection of the safe-harbor for forward-looking
statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results,
performance or achievements of Radyne ComStream and our subsidiaries to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Factors that could affect Radyne ComStream's results and cause them to materially differ from
those contained in the forward-looking statements include:
risk factors and cautionary statements made in Radyne ComStream's Annual Report on Form 10-K for the period ended December 31, 1999 and Radyne
ComStream's Quarterly Report on Form 10-Q for the period ended March 31, 2000.
Forward-looking statements speak only as of the date the statement was made. They are inherently subject to risks and uncertainties, some of which Radyne
ComStream cannot predict or quantify. Future events and actual results could differ materially from the forward-looking statements. Radyne ComStream will not
undertake and specifically declines any obligation to publicly release the result of any revisions to any forward-looking statements to reflect events or circumstances
after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, whether as the result of new information, future events or for any
other reason. In addition, Radyne ComStream does not endorse any projections regarding future performance that may be made by third parties.
PART I - FINANCIAL INFORMATION
RADYNE COMSTREAM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2000 1999
ITEM 1 Unaudited Audited
Assets
Current assets:
Cash & cash equivalents $22,796,136 2,947,660
Accounts receivable - trade,
net of allowance for doubtful
accounts of $826,746 and
$791,746 respectively 8,390,459 8,678,153
Inventories, net 11,485,134 8,339,112
Prepaid expenses 509,222 929,076
Total current assets 43,180,951 20,894,001
Property and equipment, net 3,284,539 3,595,168
Other assets:
Purchased technology, net
of accumulated amortization
of $705,000 and $505,000,
respectively 1,795,000 1,995,000
Goodwill, net of accumulated
amortization of $341,389
and $253,530, respectively 1,457,002 1,544,861
Deposits and other 59,818 207,032
Total other assets 3,311,820 3,746,893
$49,777,310 28,236,062
Liabilities and stockholders' equity
Current liabilities:
Notes payable under line
of credit agreement $5,500,000 12,920,000
Current installments
under capital leases 22,719 44,332
Accounts payable, trade 3,843,350 3,911,742
Accrued expenses 6,343,028 5,043,391
Customer advances 2,040,323 545,218
Taxes Payable 647,422 684,382
Total Current Liabilities 18,396,842 23,149,065
Obligations under capital leases,
excluding current installments 36,234 64,652
Accrued stock option compensation 552,621 695,433
Total Liabilities 18,985,697 23,909,150
Stockholders' equity:
Common Stock, $.001 par value,
50,000,000 shares authorized;
shares issued and outstanding,
14,379,450 at June 30, 2000 and
10,739,382 at December 31, 1999. 14,379 10,739
Preferred Stock, $.001 par value,
10,000,000 shares authorized;
shares issued and outstanding,
0 at June 30, 2000 and
December 31, 1999. -- --
Additional Paid-In Capital 45,946,473 23,364,055
Accumulated deficit (15,169,239) (19,047,882)
Total stockholders' equity 30,791,613 4,326,912
$49,777,310 28,236,062
RADYNE COMSTREAM INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Net sales $17,920,824 $12,943,629 $34,672,998 $25,262,334
Cost of sales 9,532,974 7,022,695 18,454,492 13,795,124
Gross profit 8,387,850 5,920,934 16,218,506 11,467,210
Operating expenses:
Selling, general
and administrative 3,571,533 2,748,038 7,729,956 5,748,728
Research and
development 2,410,953 2,208,099 4,585,125 4,515,574
Total operating
expenses 5,982,486 4,956,137 12,315,081 10,264,302
Earnings from
operations 2,405,364 964,797 3,903,425 1,202,908
Other (income)
expense:
Interest expense 165,409 543,255 383,929 1,098,029
Other (income) (295,546) -- (437,323) --
Earnings before
income taxes 2,535,501 421,542 3,956,819 104,879
Income taxes 49,176 -- 78,176 --
Net earnings $2,486,325 $421,542 $3,878,643 $104,879
Basic net earnings
per common share $0.17 $0.07 $0.29 $0.02
Diluted net
earnings per
common share $0.15 $0.06 $0.25 $0.02
Weighted average
shares used
in computation
Basic 14,342,733 5,944,574 13,400,527 5,938,303
16,307,883 6,552,574 15,291,192 6,550,417
RADYNE COMSTREAM INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
June 30, 2000 June 30, 1999
Cash flows from operating activities:
Net earnings $3,878,643 104,879
Adjustments to reconcile
net earnings to cash
flows provided by
Operating activities:
Loss on disposal of assets 30,307 --
Depreciation and amortization 1,176,196 1,483,929
Increase (decrease) in
cash resulting from changes in:
Accounts receivable 287,694 2,045,684
Inventories (3,146,022) 1,031,789
Prepaid expenses 419,854 (248,304)
Deposits and other 147,214 (1,918)
Accounts payable, trade (68,392) (1,163,444)
Accounts payable, affiliates -- (8,150)
Accrued expenses 1,299,637 (190,129)
Customer advances 1,495,105 --
Taxes payable (36,960) --
Accrued stock option
compensation (142,812) (46,673)
Net cash provided by
operating activities 5,340,464 3,007,663
Cash flows from investing activities:
Capital expenditures (608,015) (119,074)
Net cash used in
investing activities (608,015) (119,074)
Cash flows from financing activities:
Payments on notes payable
under line of credit (7,420,000) (2,000,000)
Net proceeds from exercise
of stock options 839,114 --
Net proceeds from sale
of common stock 21,746,944 71,345
Principal payments on
capital lease obligations (50,031) (71,153)
Net cash provided by
(used in) financing
activities 15,116,027 (1,999,808)
Net increase in cash 19,848,476 888,781
Cash and cash equivalents,
beginning of year 2,947,660 254,956
Cash and cash equivalents,
end of period $22,796,136 1,143,737
Supplemental disclosure of
cash flow information:
Cash paid for interest $541,857 378,145
Cash paid for taxes $108,000 --
SOURCE: Radyne ComStream Inc. |
