EXHIBIT 99
ACRODYNE ANNOUNCES DEFERRAL OF SECOND QUARTER 10Q FILING
Cockeysville, MD
CONTACT: Patti Tolley, (410) 568-1629
Acrodyne Communications, Inc., (Nasdaq -- ACRO) announced today that it is
necessary to defer filing the Company's Form 10-Q for the quarter ended June 30,
2000.
After the recent departure of the Company's Chief Executive Officer, Chief
Financial Officer and its Controller, Acrodyne's Board of Directors directed a
review of the Company's financial procedures and controls. The Company has
determined that errors exist in the audited 1999 financial statements included
in the Company's annual report on Form 10-K, and the interim financial
statements included in the Company's report on Form 10-Q for the quarter ended
March 31, 2000. Based on the review to date and advice from the Company's
independent accountant, Arthur Andersen LLP, the Company believes that the
audited financial statements for the year ended December 31, 1999, and the
reviewed financials for the quarter ended March 31, 2000, will need to be
amended and restated. The Company currently believes that errors may include
overstatement of inventories and a resulting overstatement of gross profits for
the year ended December 31, 1999 and for the quarter ended March 31, 2000, but
other inaccuracies may be discovered as the review progresses. The Company has
not yet determined the extent of the errors, and therefore has determined that
it is unable at this time to revise past financial statements or issue new
statements.
Acrodyne's Board has determined to engage a new independent accounting firm for
the purpose of conducting a full review of the inventory balances and related
activity for recent financial periods to determine the extent of any amendment
and restatement. The Company is also taking steps to enhance financial controls
and reporting accuracy as promptly as possible, including the hiring of a new
Chief Financial Officer. Pending selection of a new Chief Financial Officer, the
Company's current Chief Executive Officer and its Audit Committee are closely
monitoring financial reporting issues.
The errors discovered to date relate solely to the Company's traditional analog
product line. The Company believes that the errors will not affect its ability
to support its customer base and vendor relationships, its distribution of the
Rohde and Schwarz transmitters or the development of its new Quantum transmitter
product line. The Company continues to expect that shipments of the Quantum line
will begin in the fourth quarter of 2000.
This press release includes forward-looking statements based on the Company's
current expectations and projections about future events. These forward-looking
statements are
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subject to a number of risks, uncertainties and assumptions about the Company
that could cause actual results to differ materially from those in such
forward-looking statements. Potential risks and uncertainties include, but are
not limited to, the results of the further review of financial records described
in the release. These risks and other risk factors are described in the
Company's filings with the Securities and Exchange Commission. The Company
undertakes no obligation to update the forward-looking statements contained in
this press release.
