SOURCE: Acrodyne

June 08, 2007 11:34 ET

Acrodyne Communications, Inc. Reports Improved Financial Results for the Year Ending December 31, 2006

COCKEYSVILLE, MD--(Marketwire - June 8, 2007) - Acrodyne Communications, Inc. (PINKSHEETS: ACRO), a Delaware corporation, is an unregistered publicly held company whose stock is traded over the counter under the symbol ACRO.PK.

Acrodyne Industries, Inc. ("Ai"), the company's operating subsidiary, is a manufacturer and distributor of radio frequency equipment, including high power television broadcast transmitters. The company reported improved sales for the year ended December 31, 2006 of $16,741,500, a 17% increase over 2005 annual sales of $14,282,500.

The company attained a 71% increase in net earnings of $209,176 for the year ended December 31, 2006 as compared to 2005 earnings for the year of $122,202. Per share earnings for the year ended December 31, 2006 were approximately $.01 compared to $.005 per share for the same period in 2005. Although market forces continue pressuring gross margins on commercial transmitter sales, Ai withstood much of the pressure due to the company's continued emphasis on controlling costs and expenses.

The company agreed to convert approximately $1,757,000 of amounts owed to its majority stockholder to an interest bearing line of credit. This agreement was effective as of February 2005. Additional interest from this transaction charged against 2006 earnings amounted to $167,500. During the year, the death of a former owner permitted the company to reduce the liability for his non-compete agreement by approximately $400,000. This amount was credited to current earnings.

In addition to continuing to supply non-broadcast equipment to defense agencies, Acrodyne successfully provided high-powered transmitters to a major customer in the scientific community. Both of these areas have the potential to become material additions to supplement Ai's television transmitter business. The company started another new part of business with the timely completion of a $4 million project to construct the entire television broadcast transmission facility of a television station in Broward County, Florida. Ai is aggressively pursing similar turnkey transmission facility construction projects throughout the country.

At this time, Ai is currently experiencing the same disappointing slow rate of sales that is affecting the entire industry. Ai's management believes the current sales activity drought is almost over. After the national trade show in April, many current and potential customers expressed interest in placing orders for delivery in both 2007 and 2008. Ai is very encouraged by this promising development.

Corporate headquarters is located in Cockeysville, Maryland (a suburb of Baltimore), and the manufacturing facility is in Oaks/Phoenixville, Pennsylvania (a suburb of Philadelphia). In business for more than 35 years, the company attained a leading position as a technologically advanced high-quality producer of transmitters used by television stations to broadcast and retransmit their signals.

This press release may contain "forward-looking statements" concerning future expectations, plans, or strategies that involve a number of risks and uncertainties. Readers are also directed to consider other risks and uncertainties discussed in documents previously filed with the SEC.

Contact Information

  • FOR ADDITIONAL INFORMATION:
    Richard Murray
    Chief Financial Officer
    410-568-1708
    email: Email Contact

    Acrodyne Industries, Inc.
    Corporate Headquarters
    10706 Beaver Dam Road
    Cockeysville, MD 21030
    888.881.4447
    f: 410.568.1546

    Manufacturing Facility
    200 Schell Lane
    Phoenixville, PA 19460
    800.523.2596
    f: 610.917.8148
    www.acrodyne.com