Radyne ComStream Reports Fourth Quarter and Fiscal Year 2003
Results PHOENIX, Feb. 19 /PRNewswire-FirstCall/ -- Radyne ComStream
(Nasdaq: RADN; Warrants: RADNW) today reported net earnings of $2.6
million, or $0.16 per fully diluted share, for its fiscal fourth
quarter ended December 31, 2003 compared to net earnings for fourth
quarter 2002 of $0.4 million. Net sales for the three-month period
ended December 31, 2003 were $16.5 million compared to $13.7
million for the quarter ended December 31, 2002. Gross margins
increased in the current period to $8.9 million from $5.6 million
in the quarter ended December 31, 2002 and expenses decreased to
$4.8 million in the current period from $5.4 million for the same
quarter last year. Revenues were $58.0 million for the year ended
December 31, 2003, compared with $57.7 million for 2002. Gross
margins for 2003 were up to $26.4 million form $19.2 million and
expenses were down to $19.9 million from $24.2 million for 2002.
Net income was $4.1 million or $0.26 per fully diluted share for
the year ended December 31,2003 compared a net loss of $9.0
million, or $0.59 per fully diluted share for 2002. The 2002
results included restructuring charges of $1.5 million, asset
impairment charges of $1.0 million and the cumulative effect of
change in accounting principle of $4.3 million. Excluding these
charges, the Company's 2002 loss would have been $2.2 million or
$0.14 per fully diluted share. "Sales were up substantially over
the fourth quarter of last year, margins were higher and costs were
down," commented Bob Fitting, CEO. "Our continued focus on costs
and operations resulted in an 11% drop in operating costs from
fourth quarter last year and a high mix of new products increased
gross marginsto 54%. Improved operations and a strong balance sheet
place us in a strong competitive position for the returning capital
equipment markets. The PIPE that was announced a few days ago
resulted in the Singapore Technology holdings being purchased by
more than 40 Financial Institutions eliminating the overhang
concern and will, upon registration, improve the float and
liquidity of the stock." About Radyne ComStream Radyne ComStream
designs, manufactures, sells, integrates and installs products,
systems and software used for the transmission and reception of
data and video over satellite, microwave and cable communication
networks. The company, through the Tiernan subsidiary
(http://www.tiernan.com/), is a supplier of HDTV and SDTV encoding
and transmission equipment. The Armer subsidiary
(http://www.armercom.com/) provides innovative solutions for the
integration and installation of turnkey communications systems. 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 Rio de
Janeiro, Bangalore, Shanghai and Moscow. For more information visit
our web site at http://www.radn.com/. Contact: Garry Kline, Vice
President & Corporate Controller Radyne ComStream 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. These forward-looking statements are
often characterized by the terms "may," "believes," "projects,"
"expects," or "anticipates," and do not reflect historical facts.
Specific forward-looking statements contained in this press release
include, but are not limited to: (i) the Company's expectation that
improved operations and a strong balance sheet puts it in a strong
competitive position, (ii) the Company's anticipation that an
industry-wide and economy-wide recovery will occur and (iii) the
Company's view that the PIPE transaction will result in more
favorableconditions for our stock. 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. Factors that could
affect Radyne ComStream's results and cause them to materially
differ from those contained in the forward-looking statements
contained herein include, without limitation: (i) the Company's
inability to continue its improvement in its operations; (ii) the
Company's inability to maintain a strong balance sheet; (iii) the
failure of either the industry or the economy to achieve the
recovery that the Company anticipates and (iv) the failure ofour
stock prices to realize favorable conditions in the periods
following the PIPE transaction. Other factors that may affect
forward-looking statements and the Company's business generally
include but are not limited to: * Prospects of the international
markets and global economy given that Radyne ComStream depends
heavily on international sales. * A downturn in the evolving
telecommunications and Internet industries. * Risk factors and
cautionary statements made in Radyne ComStream's Annual Report on
Form 10-K for the period ended December 31, 2002 and in its
Quarterly Report of Form 10-Q for the period ended September 30,
2003. * The effect that acts of international terrorism may have on
Radyne ComStream's ability to ship products abroad. * Other factors
that Radyne ComStream is currently unable to identify or quantify,
but may exist in the future. 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. RADYNE COMSTREAM INC. Consolidated
Balance Sheets (in thousands) December 31, 2003 2002 Assets
Unaudited Current assets: Cash and cash equivalents $30,130 $16,230
Accounts receivable - trade, net 9,780 10,517 Inventories, net
7,766 10,655 Prepaid expenses and other assets 482 567 Deferred tax
assets -- 2,553 Total current assets 48,158 40,522 Property and
equipment, net 2,269 3,692 Deposits 182 193 $50,609 $44,407
Liabilities and Stockholders' Equity Current liabilities: Current
installments of obligations under capital leases $14 $38 Accounts
payable, trade 2,181 1,880 Accrued expenses 3,697 3,900 Customer
advance payments 877 707 Total current liabilities 6,769 6,525
Deferred rent 11 72 Obligations under capital leases, excluding
current installments 6 20 Accrued stock option compensation 205 501
Total liabilities 6,991 7,118 Stockholders' equity: Common stock 16
15 Additional paid-in capital 53,102 50,922 Accumulated deficit
(9,500) (13,625) Foreign currency translation adjustment -- (23)
Total stockholders' equity 43,618 37,289 $50,609 $44,407 RADYNE
COMSTREAM INC. Consolidated Statements of Operations (in thousands
except per share data) Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31, 2003 2002 2003
2002 Unaudited Unaudited Unaudited Net sales $16,528 $13,718
$57,990 $57,662 Cost of sales 7,610 8,153 31,639 38,041
Restructuring charge -- -- -- 431 Gross profit 8,918 5,565 26,351
19,190 Operating expenses: Selling, general and administrative
3,429 3,520 13,559 13,471 Research and development 1,411 1,899
6,294 8,665 Asset impairment charges -- -- -- 995 Restructuring
charge -- -- -- 1,102 Total operating expenses 4,840 5,419 19,853
24,233 Income (loss) from operations 4,078 146 6,498 (5,043)
Interest expense 6 28 28 62 Other(income) (72) (90) (254) (236)
Income (loss) before income taxes and cumulative effect of change
in accounting principle 4,144 208 6,724 (4,868) Income taxes
(benefit) 1,567 (196) 2,599 (196) Income (loss) before cumulative
effect of change in accounting principle 2,577 404 4,125 (4,672)
Cumulative effect of change in accounting principle -- -- -- 4,281
Net income (loss) $2,577 $404 $4,125 $(8,954) Basic net earnings
(loss) per common share $0.16 $0.03 $0.27 $ (0.59) Diluted net
earnings (loss) per common share $0.16 $0.03 $0.26 $ (.059)
Weighted average shares used in computation - Basic 15,874 15,235
15,488 15,180 Weighted average shares used in computation - Diluted
16,607 15,247 15,718 15,180 DATASOURCE: Radyne ComStream CONTACT:
Garry Kline, Vice President & Corporate Controller of Radyne
ComStream, +1-602-437-9620 Web site: http://www.radn.com/
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