ACRO Acrodyne Communications, Inc. Reports Improved Financial Results for the Year Ending December 31, 2006
Acrodyne Communications, Inc. (PINKSHEETS: ACROstock news), 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.
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