Acrodyne Communications, Inc. announces first quarter results.

BLUE BELL, Pennsylvania--(BUSINESS WIRE)--May 16, 1997--Acrodyne Communications, Inc. (NASDAQ: ACRO) today reported its results for the first quarter ended March 31, 1997.

For the three months ended March 31, 1997, net sales were $2,268,198 as compared to $2,210,350 for the same period in 1996. Net loss was $374,917, or a loss of $0.09 per share, on 4,401,303 weighted average common shares outstanding for the three months ended March 31, 1997, as compared to a net loss of $119,298, or a loss of $0.05 per share, on 2,610,550 weighted average common shares outstanding for the same period in 1996.

During the quarter, the Company experienced sales levels which were short of expectations. The Company believes that sales in the domestic marketplace reflect the ambivalence on the part of the broadcasting industry to purchase equipment pending a clearer plan for the emergence of digital television (DTV). Consequently, in order to generate sales volume and meet the demands of an increasingly competitive market, the Company's margin on sales during the current quarter decreased to 26%, from the previous 31% for the three months ended March 31, 1996. Operating expenses increased during the quarter, primarily due to increased selling expenses as a result of the expanded sales and marketing efforts put in place to promote the Company's current product line as well as its new wireless cable (MMDS) and Digital products, higher sales commissions paid due to a higher portion of overseas sales activities and increased expenses in engineering and R&D, quality assurance and materials management initiatives.

These expenses were offset by decreased interest expense resulting from the Company's payment of several bank and capital lease debts due to its strong cash flow position and a significant increase in interest income stemming from the investment of operating cash obtained primarily from warrant exercises during the calendar year ended December 31, 1996.

A. Robert Mancuso, Chairman and CEO, commented, "While we are disappointed with our first quarter performance, we are pleased that the domestic TV broadcasters have recently been granted new digital spectrum and are back planning the purchases of new high power transmitters once again. Since the National Association of Broadcasters (NAB'97) show in early April, our sales department has identified approximately $45 million of new potential orders. We expect to obtain our fair share of these orders commencing the second quarter of 1997."

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. -0-

                       ACRODYNE COMMUNICATIONS, INC.
                            SUMMARY OF RESULTS
                                (Unaudited)

                               Three Months Ended March 31,
                           1997                        1996

Revenues              $  2,268,198              $  2,210,350

Gross Profit               596,313                   694,177

Total Operating Expenses   932,702                   770,453

Operating Profit/(Loss)   (336,389)                  (76,276)

Other Income/(Expense)     (18,640)                 ( 43,022)

Net Income/(Loss)    $    (355,029)            $    (119,298)

Dividend on 8% Convertible
 Redeemable Preferred Stock (19,888)                     - -

Net Income/(Loss)
 Available to
 Common Shares       $    (374,917)            $    (119,298)

Net Income/(Loss)
 Per Share           $       (0.09)            $       (0.05)

Weighted Average Common
 Shares Outstanding      4,401,303                 2,610,550

NOTE: The business of Acrodyne Communications, Inc., formerly known as Acrodyne Holdings, Inc., is conducted through its sole operating subsidiary Acrodyne Industries, Inc. Acrodyne Industries, Inc. was acquired by Acrodyne Holdings, Inc. pursuant to a stock acquisition agreement on October 24, 1994. Prior thereto, Acrodyne Communications, Inc. had no operations. Acrodyne Holdings, Inc. changed its name to Acrodyne Communications, Inc. on June 9, 1995.

CONTACT: ACRODYNE COMMUNICATIONS, INC.

A. Robert Mancuso, Chairman and CEO

[phone]

http://www.acrodyne.com

or

WOLFE AXELROD ASSOCIATES

Stephen D. Axelrod, CFA 

Mona J. Walsh

Susan T. Bolen (Media)

[phone]; [phone]

e-mail: [e-mail]