EX-99 2 dex99.htm PREFERRED RENDERING OF XBRL INSTANCE Preferred Rendering of XBRL Instance

Exhibit 99

 

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Radyne Corporation

Consolidated Balance Sheets

December 31, 2006 and 2005

(in thousands, except share data)

 

     December 31,
     2006    2005

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 27,540    $ 16,928

Accounts receivable—trade, net of allowance for doubtful accounts of $266 and $804, respectively

     27,828      20,337

Inventories

     21,106      18,057

Deferred tax assets

     2,593      3,010

Prepaid expenses and other assets

     1,196      864
             

Total current assets

     80,263      59,196

Goodwill

     29,950      30,333

Intangible assets

     5,567      6,706

Deferred tax assets, net

     190      —  

Property and equipment, net

     3,822      4,098

Other assets

     212      295
             

Total Assets

   $ 120,004    $ 100,628
             

Liabilities and Stockholders’ Equity

     

Current liabilities:

     

Accounts payable

   $ 5,959    $ 5,054

Accrued expenses

     9,994      9,045

Customer advance payments

     1,057      2,319

Current portion of long-term debt

     —        1,000

Income taxes payable

     981      609
             

Total current liabilities

     17,991      18,027

Long-term debt, less current portion

     —        3,750

Deferred tax liability

     —        752

Deferred rent

     148      413

Accrued stock option compensation

     —        46
             

Total liabilities

     18,139      22,988
             

Commitments and contingencies (notes 9 and 17)

     

Stockholders’ equity:

     

Common stock; $.001 par value—authorized, 50,000,000 shares; issued and outstanding, 18,351,576 shares and 17,334,467 shares, respectively

     18      17

Additional paid-in capital

     75,500      63,171

Retained earnings

     26,315      14,450

Other comprehensive income

     32      2
             

Total stockholders’ equity

     101,865      77,640
             

Total Liabilities and Stockholders’ Equity

   $ 120,004    $ 100,628
             


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Radyne Corporation

Consolidated Statements of Operations

For the Years Ended December 31, 2006, 2005 and 2004

(in thousands, except per share data)

 

     Year ended December 31,  
     2006     2005     2004  

Net sales

   $ 134,209     $ 103,263     $ 56,578  

Cost of sales

     77,738       57,251       26,435  
                        

Gross profit

     56,471       46,012       30,143  
                        

Operating expenses:

      

Selling, general and administrative

     28,627       21,777       15,420  

Research and development

     10,947       8,824       5,330  
                        

Total operating expenses

     39,574       30,601       20,750  
                        

Earnings from operations

     16,897       15,411       9,393  

Other (income) expense:

      

Interest expense

     241       252       29  

Interest and other income

     (1,359 )     (665 )     (492 )
                        

Earnings before income taxes

     18,015       15,824       9,856  
                        

Income tax expense (benefit)

     6,150       5,138       (3,644 )
                        
Net earnings    $ 11,865     $ 10,686     $ 13,500  
                        

Earnings per share:

      

Basic

   $ 0.66     $ 0.63     $ 0.83  
                        

Diluted

   $ 0.63     $ 0.60     $ 0.79  
                        

Weighted average number of common shares outstanding:

      

Basic

     18,026       16,838       16,357  
                        

Diluted

     18,845       17,700       17,136  
                        


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Radyne Corporation

Consolidated Statements of Stockholders’ Equity and Comprehensive Income

Years ended December 31, 2006, 2005 and 2004

(in thousands)

 

     Common Stock    Additional
Paid-in
capital
    Retained earnings
(accumulated
deficit)
    Accumulated other
comprehensive
income
   Total  
     Shares     Amount          

Balance, December 31, 2003

   16,131       16      53,102       (9,500 )     —        43,618  

Exercise of stock options

   435       —        1,572       —         —        1,572  

Issuance of common stock through employee stock purchase plan

   70       —        460       —         —        460  

Common stock repurchased and retired

   (403 )     —        (2,555 )     (236 )     —        (2,791 )

Tax benefit from stock option exercises

   —         —        1,835       —         —        1,835  

Comprehensive income:

              

Net earnings

   —         —        —         13,500       —        13,500  
                    

Comprehensive income

                 13,500  
                                            

Balance, December 31, 2004

   16,233       16      54,414       3,764       —        58,194  

Exercise of stock options

   462       1      2,053       —         —        2,054  

Exercise of stock warrants

   311       —        2,717       —         —        2,717  

Issuance of common stock through employee stock purchase plan

   109          768       —         —        768  

Shares issued—acquisition

   220       —        2,018       —         —        2,018  

Acceleration of stock options

   —         —        365       —         —        365  

Tax benefit from stock option exercises

          836       —         —        836  

Comprehensive income:

              

Foreign translation adjustment

   —         —        —         —         2      2  

Net earnings

   —         —        —         10,686       —        10,686  
                    

Comprehensive income

                 10,688  

Balance, December 31, 2005

   17,335     $ 17    $ 63,171     $ 14,450     $ 2    $ 77,640  
                                            

Exercise of stock options

   870       1      6,265       —         —        6,266  

Issuance of common stock through employee stock purchase plan

   127       —        1,190       —         —        1,190  

Stock compensation—stock awards

   20       —        259       —         —        259  

Stock compensation—stock options granted

   —         —        1,699       —         —        1,699  

Stock compensation—ESPP

   —         —        429       —         —        429  

Tax benefit from stock option exercises

   —         —        2,487       —         —        2,487  

Comprehensive income:

              

Foreign translation adjustment

   —         —        —         —         30      30  

Net earnings

   —         —        —         11,865       —        11,865  
                    

Comprehensive income

   —         —        —         —         —        11,895  
                                            

Balance, December 31, 2006

   18,352       18      75,500       26,315       32      101,865  
                                            


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Radyne Corporation

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2006, 2005 and 2004

(in thousands)

 

     Years ended December 31,  
     2006     2005     2004  

Cash flows from operating activities:

      

Net earnings

   $ 11,865     $ 10,686     $ 13,500  

Adjustments to reconcile net earnings to net cash provided by operating activities:

      

Asset impairment charge

     —         —         135  

Provision for bad debt

     374       (331 )     318  

Deferred income taxes

     187       3,070       (5,663 )

Gain on disposal of assets

     (264 )     (53 )     (23 )

Depreciation and amortization

     3,441       2,378       1,246  

Tax benefit from stock plan dispositions

     —         836       1,835  

Stock compensation expense

     2,387       365       —    

Increase (decrease) in cash resulting from changes in:

      

Accounts receivable

     (7,865 )     (4,787 )     (266 )

Inventories

     (3,049 )     542       (366 )

Prepaid expenses and other current assets

     (332 )     324       (364 )

Other assets

     66       (44 )     20  

Accounts payable

     682       (2,262 )     (615 )

Accrued expenses

     949       1,971       1,571  

Income taxes payable

     372       286       57  

Customer advance payments

     (1,262 )     347       (728 )

Long-term obligations

     (265 )     (399 )     19  

Accrued stock option compensation

     (46 )     (100 )     (59 )
                        

Net cash provided by operating activities

     7,240       12,829       10,617  
                        

Cash flows from investing activities:

      

Acquisition, net of cash

     (104 )     (43,538 )     —    

Capital expenditures

     (2,134 )     (2,053 )     (822 )

Proceeds from sales of property and equipment

     388       104       148  
                        

Net cash used in investing activities

     (1,850 )     (45,487 )     (674 )
                        

Cash flows from financing activities:

      

Borrowing from notes payable

     —         5,000       —    

Payments under notes payable

     (4,750 )     (250 )     —    

Repurchase of common stock

     —         —         (2,791 )

Net proceeds from sale of common stock to employees

     1,190       768       460  

Exercise of stock options

     6,265       2,054       1,572  

Exercise of redeemable warrants

     —         2,717       —    

Tax benefit from stock plan dispositions

     2,487       —         —    

Principal payments on capital lease obligations

     —         (5 )     (14 )
                        

Net cash (used in) provided by financing activities

     5,192       10,284       (773 )
                        

Net (decrease) increase in cash and cash equivalents

     10,582       (22,374 )     9,170  

Effects of exchange rate changes on cash and cash equivalents

     30       2       —    

Cash and cash equivalents, beginning of year

     16,928       39,300       30,130  
                        

Cash and cash equivalents, end of year

   $ 27,540     $ 16,928     $ 39,300  
                        

Supplemental disclosures of cash flow information:

      

Cash paid for interest

   $ 275     $ 176     $ 29  
                        

Cash paid for taxes

   $ 3,104     $ 623     $ 125  
                        

Non-cash investing activities:

      

Issuance of 219,709 shares of common stock in acquisition

   $ —       $ 2,018     $ —    
                        

Adjustments for Xicom acquisition accounting, primarily for tax credits identified during allocation period

   $ 488     $ —       $ —