ADDvantage Technologies Reports Fiscal 2008 Second Quarter

Tag : CATV Converter

BROKEN ARROW, Okla., May 12, 2008 (PRIME NEWSWIRE) -- ADDvantageTechnologies Group, Inc. (Nasdaq:AEY), today announced its resultsfor fiscal second quarter 2008.
Revenue for the three-month period ended March 31, 2008 was $13.9million compared to $16.0 million in the same period a year ago, adecrease of 13%, attributable to a decrease in new equipment salesof $2.5 million.
Net income attributable to common stockholders in the secondquarter of 2008 was $1.4 million, or $0.14 per diluted share,compared to $1.6 million, or $0.15 per diluted share, in theyear-earlier period, a decrease of 7%.
For the six months ended March 31, 2008, revenue decreased 7% to$28.6 million from $30.8 million, in the same period a year ago.
Net income attributable to common stockholders for the six-monthperiod was $2.9 million, or $0.28 per diluted share, a decrease of3% from net income of $3.0 million, or $0.29 per diluted share, forthe first six months of fiscal 2007.
Ken Chymiak, ADDvantage Technologies Group President and CEO,commented, "We were pleased with our overall performance for thequarter despite our reduced sales volumes. By focusing onoperational efficiencies, we have been able to keep our margins andearnings from decreasing significantly, as new equipment sales haveslowed. Equipment sales have declined primarily due to the lack ofupgrades being performed by our customers and improvements in thedelivery lead times from our manufacturers, which also supplyequipment directly to our customers. Although our sales of newproducts have declined, our repair service has been bolstered, asour customers that are delaying their upgrade projects have anincreased need for the repair of older equipment. We anticipatethis trend to continue through the remainder of the year. Inaddition to the strength in our repair service revenue, sales ofour refurbished converter boxes remain healthy, both domesticallyand in Latin America. Sales of converter boxes during the first sixmonths exceeded 2007 volumes by $2.0 million. However, as demandfor this product line remains high, we are finding ourselveschallenged to maintain an adequate inventory supply of this productline."
Mr. Chymiak continued, "We remain confident in our ability toproduce consistent results on a quarterly basis as we continue toaddress operational efficiencies in this current economic climateof reduced capital expenditures. The diversification in our productoffering, coupled with our successful repair business, willcontinue to benefit the Company. We are extremely satisfied withour operating discipline and will continue to run our business in amanner that we expect will be successful in the current economy.That being said, we are still optimistic about future prospects ofincreased equipment sales given the necessity for cable operatorsbig and small to increase bandwidth in order to keep up withadvancing technology."
Earnings Conference Call
As previously announced, the Company's earnings conference call isscheduled for 12:00 pm EDT, May 12, 2008. A live audio of the callwill be accessible to the public. The dial-in number for theconference call is (800) 862-9098 (domestic) or (785) 424-1051(international). Please call at least five minutes before thescheduled start time.
For interested individuals unable to join the conference call, areplay of the call will be available through May 19, 2008, at (800)388-9064 (domestic) or (402) 220-1116 (international). The onlinearchive of the webcast will be available on the Company's websitefor 30 days following the call.
About ADDvantage Technologies Group, Inc.
ADDvantage Technologies Group, Inc. supplies the cable television(CATV) industry with a comprehensive line of new and usedsystem-critical network equipment and hardware from leadingmanufacturers, including Scientific-Atlanta and Motorola, as wellas operating a national network of technical repair centers. Theequipment and hardware ADDvantage distributes is used to acquire,distribute, and protect the broad range of communications signalscarried on fiber optic, coaxial cable and wireless distributionsystems, including television programming, high-speed data(Internet) and telephony.
ADDvantage operates through its subsidiaries, Tulsat,Tulsat-Atlanta, Tulsat-Nebraska, Tulsat-Texas, NCS Industries,ComTech Services, Jones Broadband International and BroadbandRemarketing International. For more information, please visit thecorporate web site at www.addvantagetech.com.
The information in this announcement may include forward-lookingstatements. All statements, other than statements of historicalfacts, which address activities, events or developments that theCompany expects or anticipates will or may occur in the future, areforward-looking statements. These statements are subject to risksand uncertainties, which could cause actual results anddevelopments to differ materially from these statements. A completediscussion of these risks and uncertainties is contained in theCompany's reports and documents filed from time to time with theSecurities and Exchange Commission.