PHOENIX, Aug. 2, 2007 (PRIME NEWSWIRE) -- Radyne Corporation (Nasdaq:RADN) announced today that it had completed its acquisition of AeroAstro, Inc. Radyne paid $17.25 million in cash, 81,699 shares of stock and assumed approximately $250,000 in debt at the closing. AeroAstro will continue to operate as a Radyne subsidiary from its Ashburn, Virginia offices.
AeroAstro designs and builds small and microsatellites and related technologies. AeroAstro's experience spans a range of capabilities - from ultra-low-cost R&D programs using commercial components, to high-reliability programs using space-qualified components. In addition to spacecraft equipment, AeroAstro developed and operates the Sensor Enabled Notification System (SENS), which provides cost effective satellite based low data rate communications and asset tracking throughout the United States, North America, Europe, Australia, the Middle East, Asia, and South America.
"We look forward to working with AeroAstro's management team to accelerate their success in the microsateliite industry," said Myron Wagner, Radyne's CEO. "We believe that AeroAstro is facing a number of exciting opportunities to provide our shareholders with a superior return on their investment."
"This merger is an important step in achieving our mission of making space and communications services available and important to a greatly expanded community," commented Rick Fleeter, founder and CEO of AeroAstro. "AeroAstro remains focused on combining the best technologies and systems engineering approaches to provide dramatically lower cost space systems, space and communications services, and components to government and commercial customers."
About Radyne Corporation
Radyne Corporation 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. For more information, visit our web site at www.radn.com.
About AeroAstro
AeroAstro, founded in 1988, is a leader in innovative microsatellite systems, components, and advanced communications technologies. AeroAstro was the prime contractor for STPSat-1 responsible for spacecraft design and fabrication, integration of all experiments, space vehicle testing, launch integration support, launch and early orbit operations support, and post-launch mission operations support. Additional information is available at AeroAstro's websites: www.aeroastro.com and www.sensservice.com
Safe Harbor Paragraph for Forward-Looking Statements
This press release includes statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act") and Radyne claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results, performance or achievements of Radyne Corporation and its subsidiaries to be materially different from those expressed or implied by such forward-looking statements. Specific forward-looking statements contained in this press release include statements relating to its proposed acquisition of AeroAstro, and the expected alignment of the various Radyne businesses and other anticipated benefits of the combination of Radyne and AeroAstro, Inc. Other factors that may affect forward-looking statements and the Company's business generally include but are not limited to:
* Prospects of the international markets and global economy given that Radyne Corporation depends heavily on international sales. * A downturn in US Government spending for defense and other government customer needs. * A downturn in the evolving telecommunications, television broadcast and Internet industries. * Risk factors and cautionary statements made in Radyne Corporation's Annual Report on Form 10-K for the period ended December 31, 2006. * The effect that acts of international terrorism may have on Radyne Corporation's ability to ship products abroad. * Other factors that Radyne Corporation is currently unable to identify or quantify, but may exist in the future.
With respect to the AeroAstro, Inc. acquisition, uncertainties include the risks that the transaction will not close, and, if it closes, that: AeroAstro's business will not be integrated successfully; marketing, sales, customer and other synergies anticipated from the acquisition will not be fully realized or will take longer to realize than expected; unanticipated expenses and liabilities will be incurred; the combined companies will lose key officers, employees, suppliers or customers; Radyne will not be able to improve AeroAstro's profitability; and the acquisition may not be accretive in the near term or even in future years.
Forward-looking statements speak only as of the date the statement was made. Radyne Corporation does not undertake and specifically declines any obligation to update any forward-looking statements.
RADN-PR