BROKEN ARROW, OK -- (Marketwire) -- 02/12/13 -- ADDvantage Technologies Group, Inc. (NASDAQ: AEY) today announced its results for the three month period ended December 31, 2012.
Revenue for the three months ended December 31, 2012 increased 7% to $9.6 million compared to $9.0 million for the same period last year. New equipment sales were $5.6 million for the three months ended December 31, 2012 as compared to $5.3 million for the three months ended December 31, 2011. Net refurbished equipment sales were $3.0 million for the three months ended December 31, 2012 as compared to $2.6 million for the same period last year. Service revenue decreased to $1.0 million for the three month period ended December 31, 2012 compared to $1.1 million for the same period last year.
Net income increased 100% to $0.8 million, or $0.08 per diluted share, for the three month period ended December 31, 2012, compared to $0.4 million, or $0.04 per diluted share, for the same period last year.
Cash and cash equivalents were $7.3 million as of December 31, 2012 compared to $5.2 million as of September 30, 2012.
David Humphrey, President and CEO, commented, "We achieved revenue growth of 7% in the first quarter of fiscal 2013 primarily as a result of the recent extreme weather conditions in the Mid-Atlantic and Northeastern regions of the U.S. We were able to satisfy the customers' urgent equipment needs with our inventory on hand for which the original equipment manufacturer was unable to deliver in a timely manner. Although we do not anticipate this particular situation to provide much additional revenue, these types of situations will continue to provide us with opportunities to take advantage of our inventory position. Gross margins for the first quarter of fiscal 2013 increased to 33% from 30% from the prior year period, which is primarily attributable to higher margin sales of certain equipment purchased at significant discounts. As a result, we increased our profitability for the quarter and strengthened our cash position to $7.3 million as of December 31, 2012. This bottom line performance also reflects a $0.2 million decrease in interest expense compared to the same period last year, following the payoff of a term loan and the termination of the associated interest rate swap agreement last year."
"Our Company is purchasing small volumes of our common stock in the open market, over 170,000 shares since December 2012, as we believe our stock is a good value. The stock purchases notwithstanding, we remain focused on our previously announced growth strategy, which is to expand upon existing agreements with our suppliers, entering into new agreements with new suppliers, expanding our geographical footprint and identifying accretive acquisitions within our industry," concluded Mr. Humphrey.
Earnings Conference Call
As previously announced, the Company will host a conference call on Tuesday, February 12, 2013, 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, www.addvantagetechnologies.com. 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) 389-5988 (domestic) or (719) 325-2469 (international). All dial-in participants must use the following code to access the call: 5034666. Please call at least five minutes before the scheduled start time.
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