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California Amplifier Agrees to Buy Vytek

From Bloomberg News

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.

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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.

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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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