BROKEN ARROW, OK -- (Marketwired) -- 05/14/13 -- ADDvantage Technologies Group, Inc. (NASDAQ: AEY), today announced its results for the three and six month periods ended March 31, 2013.
Revenue for the three months ended March 31, 2013 decreased 11% to $8.2 million compared to $9.2 million for the same period last year. New equipment sales were $4.9 million for the three months ended March 31, 2013 as compared to $5.9 million for the three months ended March 31, 2012. Net refurbished equipment sales were relatively flat at $2.4 million for the three months periods ended March 31, 2013 and March 31, 2012. Service revenue decreased to $0.9 million for the three month period ended March 31, 2013 compared to $1.0 million for the same period last year.
Net income increased $0.4 million to $0.3 million, or $0.03 per basic and diluted share, for the three month period ended March 31, 2013, compared to a loss of $0.1 million, or $0.01 per basic and diluted share, for the same period last year. The three month period ended March 31, 2012 includes an $0.8 million interest expense associated with the termination of an interest rate swap agreement following the early payoff of the outstanding amount under the second term loan under the Credit and Term Loan Agreement.
For the six months ended March 31, 2013, revenue decreased to $17.8 million from $18.2 million for the same period last year. The decrease in revenue was primarily due to the continued decrease in plant expansions and bandwidth upgrades in the cable television industry, largely offset by increased equipment sales as a result of Hurricane Sandy. Net income for the six month period increased $0.7 million to $1.1 million, or $0.11 per basic and diluted share, as compared to $0.4 million, or $0.04 per basic and diluted share, for the first six months of fiscal 2012.
Cash and cash equivalents were $7.5 million as of March 31, 2013 compared to $5.2 million as of September 30, 2012. As of March 31, 2013, we had inventory of $21.5 million compared to $22.7 million as of September 30, 2012.
During the second quarter of fiscal 2013, the Company purchased 190,261 shares of its common stock outstanding, at an average price per share of $2.16, under its share repurchase program. These most recent purchases completed the approved program, which allowed the Company to purchase up to $1.0 million of outstanding shares of common stock. The Board of Directors has elected to not extend this program at this time, as the Company looks towards instituting a more active acquisition strategy.
"We continue to report a steady flow of quarterly profits and have strengthened our balance sheet, despite facing a prolonged period of inactivity throughout the CATV equipment industry," stated David Humphrey, President and CEO. "Our strategy of streamlining and managing costs has proven to be an effective approach for the past several years; however, we are now taking a more aggressive stance in the market in order to drive future growth.
"This strategy focuses on growing and diversifying our business by signing new and expanded agreements with OEMs, entering new segments of the CATV equipment markets and expanding our geographic footprint both in the U.S. and in Latin America. This strategy can be achieved by investing in our existing operations, strengthening our sales team, and executing strategic acquisitions.
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