Andrew Corporation Reports Record Sales

Andrew Corp. has reported record total sales of US$551 million for its third quarter ended June 30, 2006, an increase of 13% compared to US$487 million in the prior year quarter. Wireless Infrastructure sales increased 13% versus the prior year quarter due mainly to growth for products supporting global wireless network upgrades and expansion and the inclusion of US$17 million of sales from the acquisition of Precision Antennas in April 2006.

Satellite Communications sales increased 19% versus the prior year quarter due mainly to new products introduced in consumer broadband and military satellite communications. Total orders increased 23% to a record US$605 million versus the prior year quarter driven by all major product groups supporting global wireless network upgrades and expansion.

"Overall global demand trends have continued to be positive for the wireless infrastructure industry as demonstrated by record sales and orders for the company during the third quarter," said Ralph Faison, president and chief executive officer, Andrew Corporation. "We believe our industry-leading product portfolio and globally diversified customer base provides the company with a strategic ability to benefit from network upgrades and expansions that are occurring in each major region around the globe."

Third quarter net income was US$7 million compared to net income of US$13 million in the year ago quarter.

"Our third quarter financial results reflect positive operational improvement," said Faison. "Our price surcharges on cable products have now been implemented across all customers in all geographic regions. Despite an unfavorable product mix in Base Station Subsystems and approximately $3.0 million of filter product line transition costs, gross margin for the company increased 150 basis points versus the prior quarter."

Posted to the site on 28th July 2006