ADDvantage Technologies Group Inc (AEY, Financial) filed Annual Report for the period ended 2009-09-30.
Addvantage Technologies Group Inc. sells new, used and refurbished cable TV equipment in addition to repairing equipment for cable companies within the United States and in various international markets. It maintains one of the largest inventories in the industry with new, surplus and refurbished equipment, accessories and construction hardware. Customers include cable television system operators, hotels, motels, hospitals, apartments and a myriad of other companies involved in the distribution oftelevision signals. Addvantage Technologies Group Inc has a market cap of $21.3 million; its shares were traded at around $2.1 with a P/E ratio of 6.6 and P/S ratio of 0.4. Addvantage Technologies Group Inc had an annual average earning growth of 12.3% over the past 5 years.
In 2000, our Board of Directors authorized the repurchase of up to $1.0 million of outstanding shares of our common stock from time to time in the open market at prevailing market prices or in privately negotiated transactions. During fiscal year 2009, we acquired in the open market and in a privately negotiated transaction a total of 202,864 shares of our Company s common stock at an average price of $1.74 per share. We believe that the trading price of our common stock during the past fiscal year was not fully reflective of the value of the Company s business and future prospects, and therefore, the repurchase of common stock was in the best interest of the Company and its shareholders. The repurchased shares of common stock will be held in treasury and used for general corporate purposes including possible use in our employee stock plans or for acquisitions. Repurchases are made in compliance with the safe harbor provisions of Rule 10b-18, which limits the timing, volume, price and method of stock repurchases. When combined with the treasury shares purchased in prior years, the Company can purchase additional shares that have a combined value of up to $0.6 million under this program.
In 2009, we purchased approximately $12.4 million of new inventory directly from Cisco and approximately $2.5 million of new inventory directly from Motorola. These purchases represented approximately 42% of our total inventory purchases for 2009. In addition to purchasing inventory from other original equipment manufacturers, we also purchase used or surplus new inventory from MSOs who have upgraded or are in the process of upgrading their systems.
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Addvantage Technologies Group Inc. sells new, used and refurbished cable TV equipment in addition to repairing equipment for cable companies within the United States and in various international markets. It maintains one of the largest inventories in the industry with new, surplus and refurbished equipment, accessories and construction hardware. Customers include cable television system operators, hotels, motels, hospitals, apartments and a myriad of other companies involved in the distribution oftelevision signals. Addvantage Technologies Group Inc has a market cap of $21.3 million; its shares were traded at around $2.1 with a P/E ratio of 6.6 and P/S ratio of 0.4. Addvantage Technologies Group Inc had an annual average earning growth of 12.3% over the past 5 years.
Highlight of Business Operations:
We continue to carry one of the most comprehensive mixes of inventory of cable equipment of any reseller in the industry, and we are able to deploy this equipment as needed. We believe the breadth of our inventory gives us a competitive advantage in the market. Our mix of inventory at fiscal year-end 2009 consisted of $24.7 million new products and $10.6 million of refurbished products. We also have a reserve of $2.2 million for obsolete and excess inventory. If the overall economy starts to recover in the near term, we believe that we have the inventory on hand to satisfy our customers needs in the right quantities and mix. However, if the weak economy continues and our MSO customers continue to delay or reduce their capital projects, we will need to evaluate the potential of increasing our inventory reserve due to excess quantities on hand.In 2000, our Board of Directors authorized the repurchase of up to $1.0 million of outstanding shares of our common stock from time to time in the open market at prevailing market prices or in privately negotiated transactions. During fiscal year 2009, we acquired in the open market and in a privately negotiated transaction a total of 202,864 shares of our Company s common stock at an average price of $1.74 per share. We believe that the trading price of our common stock during the past fiscal year was not fully reflective of the value of the Company s business and future prospects, and therefore, the repurchase of common stock was in the best interest of the Company and its shareholders. The repurchased shares of common stock will be held in treasury and used for general corporate purposes including possible use in our employee stock plans or for acquisitions. Repurchases are made in compliance with the safe harbor provisions of Rule 10b-18, which limits the timing, volume, price and method of stock repurchases. When combined with the treasury shares purchased in prior years, the Company can purchase additional shares that have a combined value of up to $0.6 million under this program.
In 2009, we purchased approximately $12.4 million of new inventory directly from Cisco and approximately $2.5 million of new inventory directly from Motorola. These purchases represented approximately 42% of our total inventory purchases for 2009. In addition to purchasing inventory from other original equipment manufacturers, we also purchase used or surplus new inventory from MSOs who have upgraded or are in the process of upgrading their systems.
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