Click here to close now.


Microsoft Cloud Authors: Jordan Sanders, Carmen Gonzalez, Pat Romanski, Keith Mayer, Jayaram Krishnaswamy

News Feed Item

ADDvantage Technologies Announces Financial Results for the Fiscal Fourth Quarter of 2012

Total Revenue of $35.2 Million and Net Income of $0.12 per Diluted Share for Fiscal Year 2012; Total Revenue of $8.5 Million and Net Income of $0.04 per Diluted Share for the Fourth Quarter of Fiscal Year 2012

BROKEN ARROW, OK -- (Marketwire) -- 12/11/12 -- ADDvantage Technologies Group, Inc. (NASDAQ: AEY) today announced its results for the three month period and year ended September 30, 2012.

Revenue for the three months ended September 30, 2012 decreased 25% to $8.5 million compared to $11.3 million for the same period last year. New equipment sales were $5.1 million for the three months ended September 30, 2012 as compared to $7.0 million for the three months ended September 30, 2011. Net refurbished equipment sales were $2.2 million for the three months ended September 30, 2012 as compared to $2.8 million for the same period last year. Sales of new and refurbished equipment continued to be negatively impacted by several factors including the continued decrease in plant expansions and bandwidth upgrades in the cable television industry. Service revenue decreased to $1.2 million for the three month period ended September 30, 2012 compared to $1.5 million for the same period last year.

Net income was $0.4 million, or $0.04 per diluted share, for the three month period ended September 30, 2012, compared to $0.7 million, or $0.07 per diluted share, for the same period of 2011. Net income for the fourth quarter of fiscal 2012 benefited from a $0.2 million reduction in interest expense compared to the same period last year, which was a result of the Company paying off one of its term loans in March 2012 and the termination of the associated interest rate swap agreement.

For the twelve months ended September 30, 2012, revenue decreased to $35.2 million from $38.1 million for the same period last year. The decrease in equipment sales was primarily due to the continued decrease in plant expansions and bandwidth upgrades in the cable television industry, partially offset by revenue from Adams Global Communications, which was acquired in May 2011.

Net income attributable to common stockholders for the twelve month period was $1.3 million, or $0.12 per diluted share, as compared to $2.5 million, or $0.25 per diluted share, for the twelve months of fiscal 2011. Net income for fiscal 2012 included a charge to interest expense of $0.8 million for the termination of the interest rate swap agreement, partially offset by reduced interest expense of $0.4 million subsequent to paying off one of its term loans and terminating the associated interest rate swap agreement.

David Humphrey, President and CEO, commented, "Our results continue to reflect a general weakness in equipment sales in the cable television industry. However, we still maintained our gross margins at approximately 30% and generated $1.3 million of net income in fiscal year 2012. We also improved our overall balance sheet position in fiscal year 2012 by paying off one of our term loans and terminating the associated interest rate swap agreement.

"This year, the Company began to make changes to the management team and our business to better position our Company for growth both organically and through acquisitions. There are more management changes that will be made in the coming months in order to properly align our corporate structure with our growth strategy.

"We continue to generate positive cash flow from our existing business and have a strong balance sheet in order to implement this growth strategy. This has been partially supported by acquisitions that have added sales through new suppliers to our core resale business or expanded our existing customer base within our current business, such as Adams Global Communications in May 2011. Looking ahead, we are currently seeking new acquisition opportunities that will enable us to expand the scope of our business within the cable industry," concluded Mr. Humphrey.

Earnings Conference Call
As previously announced, the Company will host a conference call on Tuesday, December 11, 2012, at 12:00 p.m. Eastern Time featuring remarks by Ken Chymiak, Chairman of the Board, David Humphrey, President and Chief Executive Officer, Dave Chymiak, Chief Technology Officer, and Scott Francis, Chief Financial Officer. The conference call will be available via webcast and can be accessed through the Investor Relations section of ADDvantage's website, Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet broadcast. The dial-in number for the conference call is (888)-503-8169 (domestic) or (719)-325-2455 (international). All dial-in participants must use the following code to access the call: 1343147. Please call at least five minutes before the scheduled start time.

For interested individuals unable to join the conference call, a replay of the call will be available through December 25, 2012 at (877) 870-5176 (domestic) or (858) 384-5517 (international). Participants must use the following code to access the replay of the call: 1343147. The online archive of the webcast will be available on the Company's website for 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 used system-critical network equipment and hardware from leading manufacturers, including Cisco, Motorola, ARRIS and Fujitsu Frontech North America, as well as operating a national network of technical repair centers. The equipment and hardware ADDvantage distributes is used to acquire, distribute, and protect the broad range of communications signals carried on fiber optic, coaxial cable and wireless distribution systems, 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 and Adams Global Communications. For more information, please visit the corporate web site at

The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company's reports and documents filed from time to time with the Securities and Exchange Commission.

(Tables follow)


                            Three Months Ended             Year Ended
                              September 30,              September 30,
                            2012         2011          2012         2011
                        ------------ ------------  ------------ ------------
  Net new sales income  $  5,126,330 $  6,956,791  $ 20,743,264 $ 25,467,734
  Net refurbished sales
   income                  2,167,944    2,805,656     9,814,763    7,430,603
  Net service income       1,188,005    1,495,727     4,658,376    5,181,193
                        ------------ ------------  ------------ ------------
Total net sales            8,482,279   11,258,174    35,216,403   38,079,530
Cost of sales              5,975,012    7,838,998    24,854,960   26,528,682
                        ------------ ------------  ------------ ------------
Gross profit               2,507,267    3,419,176    10,361,443   11,550,848
Operating, selling,
 general and
 expenses                  1,843,382    1,939,857     7,231,097    6,625,907
                        ------------ ------------  ------------ ------------
Income from operations       663,885    1,479,319     3,130,346    4,924,941
Interest expense               7,192      165,930     1,113,854      696,634
                        ------------ ------------  ------------ ------------
Income before income
 taxes                       656,693    1,313,389     2,016,492    4,228,307
Provision for income
 taxes                       236,000      584,000       766,000    1,692,000
                        ------------ ------------  ------------ ------------
Net income                   420,693      729,389     1,250,492    2,536,307

Other comprehensive
  Unrealized gain
   (loss) on interest
   rate swap, net of
   taxes                           -      (11,528)      587,258      189,425
                        ------------ ------------  ------------ ------------

Comprehensive income    $    420,693 $    717,861  $  1,837,750 $  2,725,732
                        ============ ============  ============ ============

Earnings per share:
  Basic                 $       0.04 $       0.07  $       0.12 $       0.25
  Diluted               $       0.04 $       0.07  $       0.12 $       0.25
Shares used in per
 share calculation:
  Basic                   10,189,120   10,207,390    10,196,241   10,175,213
  Diluted                 10,189,563   10,209,323    10,197,496   10,178,763

                        CONSOLIDATED BALANCE SHEETS

                                                       September 30,
                                                    2012           2011
                                               -------------  -------------
Current assets:
  Cash and cash equivalents                    $   5,191,514  $  10,943,654
  Accounts receivable, net of allowance of
   $300,000                                        3,050,796      4,244,049
  Income tax refund receivable                       409,386        349,745
  Inventories, net of allowance for excess and
   obsolete inventory of $1,000,000 and
   $1,556,000, respectively                       22,666,385     25,777,747
  Prepaid expenses                                   129,357        177,486
  Deferred income taxes                              920,000      1,059,000
                                               -------------  -------------
Total current assets                              32,367,438     42,551,681

Property and equipment, at cost:
  Land and buildings                               8,794,272      8,683,679
  Machinery and equipment                          2,953,949      2,856,615
  Leasehold improvements                               9,633        205,797
                                               -------------  -------------
Total property and equipment, at cost             11,757,854     11,746,091
Less accumulated depreciation and amortization    (3,666,327)    (3,392,329)
                                               -------------  -------------
Net property and equipment                         8,091,527      8,353,762

Other assets:
  Deferred income taxes                                    -        403,000
  Goodwill                                         1,560,183      1,560,183
  Other assets                                        13,778         19,245
                                               -------------  -------------
Total other assets                                 1,573,961      1,982,428

Total assets                                   $  42,032,926  $  52,887,871
                                               =============  =============

Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable                             $   1,437,492  $   2,675,907
  Accrued expenses                                 1,030,174      1,240,224
  Notes payable - current portion                    184,008      1,814,008
                                               -------------  -------------
Total current liabilities                          2,651,674      5,730,139

Notes payable, less current portion                1,502,612     10,244,120
Deferred income taxes                                 62,000              -
Other liabilities                                          -        957,258

Shareholders' equity:
  Common stock, $.01 par value; 30,000,000
   shares authorized; 10,465,323 and
   10,431,354 shares issued, respectively;
   10,189,120 and 10,207,390 shares
   outstanding, respectively                         104,653        104,314
  Paid in capital                                 (5,748,503)    (5,884,521)
  Retained earnings                               43,980,590     42,730,098
  Accumulated other comprehensive loss:
    Unrealized loss on interest rate swap, net
     of tax                                                -       (587,258)
                                               -------------  -------------
  Total shareholders' equity before treasury
   stock                                          38,336,740     36,362,633

  Less: Treasury stock, 276,203 and 223,964
   shares, respectively, at cost                    (520,100)      (406,279)
                                               -------------  -------------
Total shareholders' equity                        37,816,640     35,956,354
                                               -------------  -------------

Total liabilities and shareholders' equity     $  42,032,926  $  52,887,871
                                               =============  =============

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...