Wire
ACRODYNE COMMUNICATIONS, INC. ANNOUNCES THIRD
QUARTER RESULTS BUSINESS EDITORS BLUE BELL,
PA.--(BUSINESS WIRE)--NOV. 13, 1997--ACRODYNE
COMMUNICATIONS, INC. (NASDAQ: ACRO) TODAY
REPORTED ITS RESULTS
BLUE BELL, Pa.--(BUSINESS WIRE)--Nov. 13, 1997--Acrodyne
Communications, Inc. (NASDAQ: ACRO.O) today reported its results for
the three and nine months ended September 30, 1997.
For the three months ended September 30, 1997, net sales were
$2,012,245 as compared to $2,648,394 for the same period in 1996.
Net loss was $442,158, or a loss of $0.09 per share, on 4,504,226
weighted average common shares outstanding for the three months ended
September 30, 1997, as compared to a net loss of $241,029 or a loss
of $0.06 per share, on 4,238,000 weighted average common shares
outstanding for the same period in 1996.
For the nine months ended September 30, 1997, net sales were
$6,991,288 as compared to $8,062,851 for the same period in 1996.
Net loss was $1,387,455, or a loss of $0.31 per share, on 4,453,471
weighted average common shares outstanding for the nine months ended
September 30, 1997, as compared to a net loss of $699,366, or a loss
of $0.16 per share, on 3,300,000 weighted average common shares
outstanding for the same period in 1996.
During the three and nine month periods ended September 30, 1997,
the Company experienced sluggish sales primarily attributable to the
continued delay of the broadcasting industry to launch the
implementation of Digital Television (DTV). The delay had been
extended by transmission conflict resulting from digital signals
assigned by the FCC. To counter this conflict, the Company has
recently introduced "ACT" (Adjacent Channel Technology), a
transmitter capable of passing adjacent digital and analog channels
through a single high power amplifier. Non-digital sales remained
sluggish as the market continued a wait-and-see approach for
replacement of high power analog equipment.
The Company's margin on sales decreased from an average of 30%
for the three and nine months ended September 30, 1996 to an average
of 26% for the comparable 1997 periods. The decrease in profit
margin is indicative of continued price pressures from a stagnated
market and stems primarily from discounts provided to customers,
coupled with higher operating expenditures incurred by the Company to
place itself in a more competitive market position.
A. Robert Mancuso, Chairman and CEO, commented, "The increase in
operating expenses are consistent with the Company's strategy to
improve its sales and marketing presence through the addition of
direct sales personnel, increased advertising, increased
participation in trade shows and the implementation of a sales
commission program. These areas, combined with additional
investments in consulting services to support sales and marketing
should position the Company to garner a significant share of the DTV
transmitter market. In the meantime, the Company has taken overall
cost containment measures and has begun to see a reduction in its
operating expenses versus budget, going forward. We remain
optimistic, that with political and transmission issues behind us,
the domestic broadcaster will resume purchasing replacement analog
and start purchasing new digital transmitters to meet their simulcast
needs."
Acrodyne Industries, Inc., the operating subsidiary of Acrodyne
Communications, Inc., is an established and respected manufacturer of
television broadcast equipment. In business over 25 years, the
Company has developed the leading position as a technologically
advanced, high quality low cost producer of transmitters and
translators used by television stations to broadcast and retransmit
over-the-air signals.
-0-
*T
ACRODYNE COMMUNICATIONS, INC.
SUMMARY OF RESULTS
(Unaudited)
Three Months Ended Nine months Ended
Ended Sept. 30, Ended Sept. 30,
1997 1996 1997 1996
Revenues $ 2,012,245 $ 2,648,394 $ 6,991,288 $ 8,062,851
Gross Profit 526,798 790,490 1,834,688 2,504,319
Total Operating
Expenses 996,679 1,016,678 3,184,248 2,832,654
Operating
Profit/(Loss) (469,881) (226,188) (1,349,560) (328,335)
Other
Income/(Expense) 41,457 6,159 12,727 (331,370)
Net Income/(Loss) $ (428,424) $ (220,029) $ (1,336,833) $ (659,705)
Dividend on 8%
Convertible
Redeemable
Preferred Stock (13,734) (21,000) (50,622) (39,661)
Net Income/(Loss)
Available to
Common Shares $ (442,158) $ (241,029) $ (1,387,455) $ (699,366)
Net Income/(Loss)
Per Share $ (0.09) $ (0.06) $ (0.31) $ (0.16)
Weighted Average
Common Shares
Outstanding 4,504,226 4,238,000 4,453,471 3,300,000
NOTE: The business of Acrodyne Communications, Inc., formerly known
as Acrodyne Holdings, Inc., is conducted through its sole operating
subsidiary Acrodyne Industries, Inc. Acrodyne Industries, Inc. was
acquired by Acrodyne Holdings, Inc. pursuant to a stock acquisition
agreement on October 24, 1994. Prior thereto, Acrodyne
Communications, Inc. had no operations. Acrodyne Holdings, Inc.
changed its name to Acrodyne Communications, Inc. on June 9, 1995.
--30--csm/ny*
CONTACT: A. Robert Mancuso, Chairman and CEO
ACRODYNE COMMUNICATIONS, INC.
(215) 542-7000; (215) 542-7631FAX
acrodyne.com
or
Mona J. Walsh
Stephen D. Axelrod, CFA
Susan T. Bolen (Media)
WOLFE AXELROD ASSOCIATES
212/370-4500; 212/370-4505 FAX
email: 76015.440@compuserve.com
KEYWORD: PENNSYLVANIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
TELECOMMUNICATIONS EARNINGS
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