Radyne Considering Sale of Company - TvTechnology

Radyne Considering Sale of Company

The evaluation process is already underway and Radyne has had discussions with potential suitors, the publicly traded company said; however it has not set a timeframe for concluding the process.
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Radyne, a provider of satellite, RF and encoding gear for the broadcast and telecommunications industries, has announced that it is considering putting the company up for sale.

The Phoenix, Arizona-based company said a sale is one of a number of "strategic alternatives" it is looking at. Radyne has retained Needham & Co. as its financial advisor to study its options.

The evaluation process is already underway and Radyne has had discussions with potential suitors, the publicly traded company said; however it has not set a timeframe for concluding the process.

"The Board and management are united in their efforts to diligently explore strategic alternatives and to maximize shareholder value," said Myron Wagner, Radyne's CEO.

Radyne said it expects revenues for 2007 to be between $141 million and $144 million, with resulting per share earnings between $0.55 and $0.59 per fully diluted share. The company said its 2007 earnings were negatively impacted by what it described as "severe financial difficulties" suffered by one of its European customers. As a result, Radyne has reserved the entire balance of the customer's accounts receivable, or $548,000. This reserve has the effect of reducing estimated diluted earnings per share by $0.02.

Broadcast customers are most familiar with Radyne through its Tiernan brand of HDTV, SDTV encoding and transmission equipment.