California Amplifier Agrees to Buy Vytek
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California Amplifier Inc., which makes satellite TV dishes, agreed to purchase Vytek Corp. for $76.8 million in stock and said fourth-quarter per-share profit would at least triple. Its shares rose nearly 40%, the best performance in after-hours U.S. trading.
California Amplifier, whose customers include EchoStar Communications Corp. and Hughes Electronics Corp.’s DirecTV, will exchange 8.2 million shares for closely held Vytek. Camarillo-based California Amplifier also said fourth-quarter profit would rise to 18 cents to 24 cents a share from 6 cents a year earlier.
California Amplifier is buying San Diego-based Vytek to acquire communications software. Vytek, with customers including the Los Angeles Police Department and IBM Corp., has 280 employees.
Vytek’s sales in the first 11 months of this year totaled $38.4 million, California Amplifier said. The purchase will close before March, California Amplifier said.
California Amplifier, whose shares have climbed 99% this year through the close of regular trading Tuesday, said profit in the third quarter ended Nov. 30 almost quadrupled to $3.5 million, or 22 cents a share, from $905,000, or 6 cents, a year earlier. Revenue rose 85% to $44.2 million from $24 million.
In October, California Amplifier forecast profit of 13 cents to 17 cents a share. The company has been rehiring employees as satellite TV companies prepared to add customers during the holiday season.
Revenue in the fourth quarter will climb to $40 million to $48 million from $26.1 million, California Amplifier said.
California Amplifier shares rose 69 cents to $10.05 in regular trading on Nasdaq but shot up to $14.05 in after-hours trading. The announcements came after the close of regular trading.
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