Radyne Corporation: Superior Products Mean Great Growth Prospects

| About: Radyne Corp. (RADN)

Radyne (RADN) fell short of earnings expectations last quarter reporting $0.10 while the street was looking for $0.15. The stock has been beaten down somewhat as a result (14% on the year) however, we believe it has great growth prospects, a good management team, and superior products that can lift it to new highs.

Established in 1980, Radyne Corporation supplies the satellite industry with an extensive portfolio of modems, converters, encoders and amplifier products and accessories. Radyne is headquartered in Phoenix Arizona, with ISO 9001 certified design and manufacturing facilities in Phoenix Arizona, Santa Clara and San Diego California. Radyne's sales and support offices are located worldwide in Europe, Asia, Latin America and Africa to ensure timely, knowledgeable support to a broad based international set of customers.

RADN Investor Highlights

  • Reported quarterly bookings of $35.4 million, the second strongest bookings quarter in the company's history. Bookings for the first quarter of 2006 were $32.7 million. Backlog at quarter end stood at $31.1 million.
  • Received follow-on orders for over $4.1 million of DM-240 satellite modulators, DD-240 broadcast receivers and related accessories from a major direct-to-home (NYSEARCA:DTH) television broadcast distributor. The orders will ship during the second quarter.
  • Announced that its Xicom Technology subsidiary received an order for $3.6 million for power amplifiers as an additional procurement for the Ground Multi-Band Terminal (GMT) program. The amplifiers are scheduled to ship during 2007.
  • Announced that its Xicom Technology division received a follow-on procurement order for $1.4 million for Ka-band power amplifiers to be used in terminals for the U.S. Air Force's Wideband Global System
  • Received more than $6.7 million in follow-on orders from DirecTV Group Inc. for power amplifiers and satellite modulators. The orders, to be used in the DirecTV's high-definition TV expansion, are shipping during the first three quarters of 2007.
  • Received an order for $1 million of its new DMD-50 high speed satellite modem from an Asian defense agency. The DMD-50 is one of Radyne's new generation of modems that addresses the need for cost-effective, high-speed communications supporting up to 50 Mbps.
  • Profile

    Radyne Corporation (RADN) designs, manufactures, sells, integrates and installs products, systems and software used for the transmission and reception of data and video over satellite, troposcatter, microwave and cable communication networks.

    The Company, through its Tiernan subsidiary, is a supplier of HDTV and SDTV encoding and transmission equipment. The Xicom Technology subsidiary is a producer of high power amplifiers for communications applications. Radyne is headquartered in Phoenix, Arizona, has manufacturing facilities in Phoenix, Arizona, San Diego, California, and Santa Clara, California and sales offices in Singapore, Beijing, Jakarta and the United Kingdom. The Company also has sales and/or service centers in Sao Paulo, Bangalore, Shanghai and Moscow.

    Radyne Corporation is structured into three business units to maintain sharp focus on the key technologies and products its customers need and demand.

    Radyne's Phoenix division focuses on satellite and terrestrial transmission equipment that address the challenges facing both military and commercial sectors. Radyne's core products consist of satellite modems, converters, broadcast modulators, custom engineered products and system solutions. These products are installed and being used in over 150 countries worldwide.

    Radyne's Xicom Technology division manufacturers a full line of Traveling Wave Tube, Solid State, and Klystron amplifiers supporting communications power generation in C, X, Ku, DBS, Ka, Q-band, as well as Triband (C/X/Ku) operation. Amplifiers are available for both fixed and mobile markets in rack mount and antenna mount packages.

    Radyne's Tiernan division designs and manufacturers professional grade digital video and audio compression and transmission products used by Television broadcasters, common carriers, cable Television operators and Audio broadcasters worldwide. A leader in providing High Definition encoders for the last ten years, Tiernan HD encoders and decoders have been used in numerous high profile events where ease of use, service and reliability are key. The HE4000 encoder typifies Tiernan's products, and is the only commercially available unit that provides simultaneous High Definition and Standard Definition encoding. An embedded Web Browser and built in DVB modulator make this unit ideal for contribution and distribution applications.

    RADN 1-yr chart


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