Radyne Corp. reported record sales for the year and the fourth quarter ending December 31, 2005 of $103.3 million and $36.8 million respectively. Sales for the full year of 2005 grew 83 percent compared to 2004 sales of $56.6 million while during the fourth quarter sales increased 119 percent from the fourth quarter of 2004 when sales were $16.8 million.

The increase resulted from sales from recently acquired Xicom Technology, Inc. and continued growth in sales of the company’s pre-acquisition satellite electronics and broadcast equipment business. For the full year, excluding Xicom, sales related to the pre-acquisition businesses grew to $70.8 million or 25 percent. During the fourth quarter, the pre-acquisition satellite electronics and broadcast equipment sales were $22.7 million, an increase of 36 percent.

Xicom sales for the seven months and three months ended December 31, 2005 respectively were $32.8 million and $14.2 million.

Earnings from operations were at $15.4 million for the full year of 2005, a 64 percent increase from $9.4 million for 2004 and, for the fourth quarter, $6.0 million compared to $3.2 million during the same period of 2004, an increase of 88 percent.

For the fourth quarter, earnings per fully diluted share (“EPS”) were $0.24 compared to $0.18 for the fourth quarter of2004. Earnings during the fourth quarter of 2005 included a charge of $365,000 resulting from the company’s decision to accelerate vesting of stock options previously awarded to employees. The quarter also included a tax benefit of $317,000 due to the recognition of deferred tax assets resulting from previously earned and unused R&D tax credits.

EPS for the full year was $0.60 for 2005 compared to $0.79 for 2004. Earnings during 2004 included a net tax benefit of $3.6 million which, in turn, included $4.1 million or $0.24 per diluted share due primarily to the reduction of a valuation allowance against deferred tax assets.

Bookings during the fourth quarter of 2005 were $35.0 million, a 68 percent increase over bookings of $20.8 million in the fourth quarter of 2004. At the end of the year, Radyne’s backlog was $32.2 million compared to $9.6 million at the end of 2004. Bookings for the entire year were $107.2 million compared to $57.9 million for 2004. On a segment basis, for the fourth quarter, the company’s pre-acquisition satellite electronics and broadcast equipment segment booked $19.2 million and ended the period with a backlog of $12.2 million. Xicom booked $16.3 million and had an ending backlog of $20.4 million for the fourth quarter.

At the end of the year, Radyne’s cash balance was $16.9 million with $4.8 million in total debt compared to $39.3 million in cash and no debt at year-end 2004. Cash balances increased by $7.9 million during the quarter. Compared to year-end 2004, cash was reduced by the consideration for the Xicom acquisition. Consolidated Accounts Receivable increased to $20.3 million compared to $9.7 million at the beginning of the year. Consolidated Inventory was $18.1 million compared to $8.1 million at the beginning of 2005. Compared to the end of the third quarter, inventory dropped by $239,000. During the second half of 2005, the period including Xicom Technology, the Company’s inventory levels dropped 4.6 percent or $880,000.