Shares of ADDvantage Technologies Inc. (Amex: AEY) surged today after news of its second-quarter earnings were released earlier this morning. In mid-day trading, shares of ADDvantage were trading up 27 cents (6 percent) at $4.52 per share on volume of 405,100.
For the three month period ended March 31, 2007, revenue was $16 million compared to $12.4 million in the second quarter of fiscal 2006, an increase of 29 percent, and matches its largest quarter of revenues.
“A significant portion of our revenue growth came from new product sales to several large MSOs in the Midwest that are making capital improvements to increase the bandwidth of their communication signals,” stated Ken Chymiak – president and CEO of ADDvantage – in a press release. “We experienced further growth in sales of refurbished products as a result of sales of our legacy digital converter boxes. During the quarter we sold 9,000 converter boxes, bringing the total number of converter boxes sold year-to-date to approximately 16,000.”
Net income attributable to common stockholders in the second quarter of 2007 was $1.6 million, or 15 cents per share, compared to $900,000, or 9 cents per share, in the year-earlier period, an increase of 78 percent.
ADDvantage and its subsidiaries sell new, surplus and re-manufactured cable television equipment in North America, Latin America and South America. The company offers head-end products, such as satellite receivers (digital and analog), integrated receiver/decoders, demodulators, modulators, antennas and antenna mounts, amplifiers, equalizers and processors, which are used by a system operator for signal acquisition, processing and manipulation for further transmission.
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