Acrodyne Communications, Inc. Announces Third Quarter and Nine Months Results.

BLUE BELL, Pa.--(BUSINESS WIRE)--Nov. 13, 1998--Acrodyne Communications, Inc. (Nasdaq: ACRO) today announced its results for the third quarter and nine months ended September 30, 1998.

For the three months ended September 30, 1998 net sales were $3,357,391 as compared to $2,012,245 for the same period in 1997. Net loss was ($314,379), or ($0.06) per share, on 5,321,996 weighted average shares outstanding for the three months ended September 30, 1998, as compared to a net loss of ($442,158), or a loss of ($0.09) per share, on 4,504,226 weighted average common shares outstanding for the same period in 1997.

For the nine months ended September 30, 1998, net sales were $9,952,871 as compared to $6,991,288 for the same period in 1997. Net loss was ($260,878), or ($0.05) per share, on 5,318,045 weighted average common shares outstanding for the nine months ended September 30, 1998, as compared to a net loss of ($1,387,455), or a loss of ($0.31) per share, on 4,453,471 weighted average common shares outstanding for the same period in 1997.

During the quarter, sales rose 67% due primarily, the Company believes, to the issuance by the Federal Communications Commission of the final channel allocations relative to Digital Television. Domestic High Power sales, which were basically non-existent in fiscal 1997 increased to approximately $4.6 million during the nine months ended September 30, 1998. Gross margins improved in the most recent quarter to 34% as compared to 26% for the same period a year earlier as the greater percentage of domestic High Power and foreign sales demand higher margins.

The Company successfully completed the installation of its new design ACT(TM) transmitter (Adjacent Channel Technology), which validates Acrodyne's position as the only manufacturer able to overcome, with one transmitter, the problems inherent in having adjacent NTSC and DTV channels. Expenses for the nine months ended September 30, 1998 rose 11% compared to the same period in 1997 due to engineering expenses associated with the ACT transmitter and higher sales and marketing expenses associated with new product introduction and volume related sales commissions. Operating expenses increased during the quarter to $1,319,817 as compared to $996,679 for the same period in 1997.

A. Robert Mancuso, Chairman and CEO of Acrodyne, commented, "Management is optimistic due to the significant increase in sales during the third quarter. The rise in inventory allows Acrodyne to provide quick turnaround to strengthen its market position and to acquire higher volume in purchasing to take advantage of discount opportunities. The Company remains confident that it is uniquely suited to satisfy the total demands of the broadcast industry."

Acrodyne Industries, Inc., the operating subsidiary of Acrodyne Communications, Inc., is an established and respected manufacturer of television broadcast equipment. In business over 25 years, the Company has developed the leading position as a technologically advanced, high quality low cost producer of transmitters and translators used by television stations to broadcast and retransmit over-the-air signals.

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission. -0-

                     ACRODYNE COMMUNICATIONS, INC.
                 Consolidated Statement of Operations
                              (Unaudited)

                                              Three Months Ended
                                                 September 30,

                                            1998             1997
                                            ----             ----

Net sales                                 3,357,391        2,012,245
Cost of sales                             2,300,174        1,485,447
  Gross profit                            1,057,217          526,798

Operating expenses:
  Engineering, R & D                        222,316          196,897
  Selling                                   580,174          328,996
  Administration                            459,453          412,912
  Amortization                               57,874           57,874
     Total operating expenses             1,319,817          996,679
Operating profit (loss)                    (262,600)        (469,881)

Other income (expense)
  Interest expense, net                     (37,756)          39,197
  Other income, net                               5            2,260
Net income (loss)                          (300,351)        (428,424)

Dividend on 8% Convertible Redeemable       (14,028)         (13,734)
  Preferred Stock
Net loss available to common shares        (314,379)        (442,158)

Net loss per common share - basic         $   (0.06)      $    (0.09)

Weighted average shares outstanding
 - basic                                  5,321,996        4,504,226

Net loss per common share - diluted       $   (0.06)      $    (0.09)

Weighted average shares outstanding
 - diluted                                5,528,153        4,461,122


                                               Nine Months Ended
                                                  September 30,
                                            1998              1997
                                            ----              ----

Net sales                                 9,952,871        6,991,288
Cost of sales                             6,542,547        5,156,600
  Gross profit                            3,410,324        1,834,688

Operating expenses:
  Engineering, R & D                        650,093          608,421
  Selling                                 1,424,269        1,222,995
  Administration                          1,315,647        1,179,211
  Amortization                              173,622          173,621
     Total operating expenses             3,563,631        3,184,248
Operating profit (loss)                    (153,307)      (1,349,560)

Other income (expense)
  Interest expense, net                     (66,094)           9,381
  Other income, net                             607            3,346
Net income (loss)                          (218,794)      (1,336,833)

Dividend on 8% Convertible Redeemable       (42,084)         (50,622)
  Preferred Stock
Net loss available to common shares        (260,878)      (1,387,455)

Net loss per common share
 - basic                                 $    (0.05)      $    (0.31)

Weighted average shares outstanding
 - basic                                  5,318,045        4,453,471

Net loss per common share
 - diluted                               $    (0.05)      $    (0.31)

Weighted average shares outstanding
 - diluted                                5,524,202        4,427,574


                     ACRODYNE COMMUNICATIONS, INC.
                      Consolidated Balance Sheet
                             (Unaudited)

                                        September 30,    December 31,
           Assets
                                            1998             1997
                                            ----             ----
Current assets:
 Cash and cash equivalents            $  1,692,978     $  3,011,294
 Accounts receivable, net of
  allowance for doubtful accounts        3,526,876          943,183
 Inventories                             6,894,540        5,271,449
 Prepaid expenses and deposits             378,711          105,067
     Total current assets               12,493,105        9,330,993

Property, plant and equipment, net         569,065          666,395
Note receivable                             89,949           85,436
Non-compete agreement, net                 454,572          510,822
Goodwill, net                            4,094,830        4,212,202
Total assets                          $ 17,701,521     $ 14,805,848

     Liabilities and Shareholders' Equity

Current liabilities:
 Current portion of long-term debt    $    352,082     $    352,082
 Borrowings under Line of Credit         1,500,000               -
 Accounts payable                        2,018,017        1,151,372
 Accrued expenses                          340,511          238,796
 Customer advances                         303,494          347,378
     Total current liabilities           4,514,104        2,089,628

Long-term debt                             110,778          379,196
Non-compete liability                      714,861          722,647
     Total liabilities                   5,339,743        3,191,471

Shareholders' equity:
 Preferred Stock Series "A"
 par value $1.00                           326,530
 8% Redeemable Convertible Preferred Stock

 Preferred stock, par value $1.00;
 1,000,000 shares authorized,
 8% Convertible Redeemable Preferred Stock

                                             6,500            6,500

Common stock, par value $0.01;
 10,000,000 shares authorized,
 5,327,270 shares issued and outstanding    53,273           53,143
 on September 30, 1998 and
 5,314,270 on December 31, 1997

 Additional paid-in capital             17,820,133       17,180,718
Accumulated deficit                     (5,844,658)      (5,625,984)
     Total liabilities and
      shareholders' equity            $ 17,701,521     $ 14,805,848