Radyne Reports 3Q Sales of $32.1-M

PHOENIX, Oct. 24, 2006/Satnews Daily/ ― Radyne Corporation (NASDAQ:RADN) reported on Monday net sales for the third quarter of 2006 of $32.1 million compared to third quarter 2005 net sales of $32.1 million. During the quarter, Radyne said net sales for the amplifier segment (Xicom Technology) rose to $15.6 million, an increase of 15 percent from third quarter 2005 sales of $13.6 million.

Net sales for the satellite electronics and broadcast segment for the quarter were $16.5 million compared to $18.6 million for the third quarter of 2005. Net earnings for the third quarter of 2006 were $2.8 million, or $0.15 per diluted share compared to earnings of $2.9 million, or $0.16 per diluted share for the same quarter of 2005.

Earnings from operations were $3.8 million during the third quarter of 2006 compared to $4.4 million for the third quarter of 2005. Third quarter 2006 includes equity compensation expense of $924,000 which had the effect of reducing earnings per diluted share by $0.03.

Bookings during the quarter were $32.1 million, compared to bookings of $36.3 million in the third quarter of 2005. At the end of the third quarter of 2006, Radyne's backlog was $33.2 million compared to $34.0 million at the end of the third quarter of 2005.

For the first nine months of 2006, sales rose 47 percent to $97.9 million compared to $66.5 million for the first nine months of 2005. Consolidated sales for the nine months of 2005 included eighteen weeks of Xicom amplifier sales. Earnings per diluted share for the first nine months of 2006 grew to $0.44 from $0.36 for the same period in 2005.

During the first nine months of 2006, the company said it recorded $1.5 million of expense related to its CEO succession which had the effect of reducing earnings per diluted share by $0.05.

“Xicom had a record month of sales in September and is on pace for a record year,” commented Myron Wagner, Radyne's CEO. “Our satellite electronics and broadcast segment results were impacted by the loss of one order and the deferral of two others into the fourth quarter. However, we remain optimistic that sales in this business will recover during our traditionally strong fourth quarter,” Wagner added.

For the first nine months of 2006, Radyne's cash balance increased 70 percent to $28.7 million compared to $16.9 million at the beginning of 2006. Consolidated Accounts Receivable increased to $22.1 million compared to $20.3 million at the beginning of 2006. Consolidated Inventory was $21.3 million compared to $18.1 million at the beginning of 2006.

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