ANTP Phazar Corp (MM)

PHAZAR CORP, (NASDAQ: ANTP) announced today the unaudited results of operations for the three and nine month periods ended February 28, 2009.

Third Quarter Fiscal Year 2009

Revenues of $1.5 million for the third quarter decreased 53% compared to $3.2 million for the same period last year. The Company recognized a net loss of $241,039, or $ .10 per share for the third quarter, compared to net income of $334,267, or $.14 per share, in last year's fiscal third quarter.

Much of the 53% decrease in revenues year-to-year is attributable to the completion of a major antenna project for Page Iberica S.A. totaling approximately one million dollars in the third quarter last year. However, a slow-down in government and government related contracting activity was also a contributing factor in lower revenues for the three month period ended February 28, 2009.

The net loss in the third quarter of fiscal year 2009 is attributed to lower revenues and a 23% increase in sales and administration expense. The increase in sales and administration expense reflects higher compensation costs associated with newly hired employees, incremental research and development costs during the quarter for continued development of our new mesh radio wireless network product line and an increase in legal and professional fees primarily associated with the ongoing FINRA arbitration claim against UBS Financial Services.

Commenting on the quarter, Garland P. Asher, Chairman and CEO, said, �U.S. Government and related contracting activity can fluctuate significantly from quarter to quarter. This has been particularly apparent during the current change in administration process and during a period of time where current year budget issues have yet to be resolved. However, after very subdued contract activity levels during the Fall and into January, 2009, a more normal pace appeared to be resuming in February, 2009. Meanwhile, the Company remains fiscally conservative with a strong debt free Balance Sheet and cash balances exceeding $3.7 million at quarter end.�

Nine Month Period Ending February 28, 2009

The Company reported revenues for the nine-month period of $5.6 million, a decrease of 17 % compared to $6.8 million for the comparable period last year. Net loss for the nine month period was $299,950, or $.13 per share compared to net income of $624,733, or $0.27 per share for the comparable period last year.

Backlog of Orders

The Company's backlog of orders on February 28, 2009, totaled approximately $1.9 million compared to $3.2 million at February 29, 2008, a decrease of 41%. Backlog at our May 31, 2008 year-end and our second quarter of fiscal year 2009 were $2.5 million and $2.1 million, respectively. Incoming orders for the nine month period totaled $5.1 million versus $6.4 million for the comparable period last year. The Company's book to ship ratio was 89 % for the nine month period ended February 28, 2009 compared to 94% for the comparable nine month period last year.

More information and analysis of PHAZAR CORP�s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the third quarter ended February 28, 2009, estimated to be filed with the Securities and Exchange Commission on or around April 14, 2009.

The Form 10-Q will be available at the SEC�s website at www.sec.gov and PHAZAR CORP�S website at www.phazarcorp.com.

Product information is available at www.antennaproducts.com, www.truemeshnetworks.com and www.phazar.com.

The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under the trading symbol �ANTP�. This press release contains forward-looking information within the meaning of Section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances and underlying assumption and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results, or outcomes to differ materially from those expressed in the forward-looking statements. The Company�s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, management�s examination of historical operating trends, data contained in the Company�s records and other data available from third parties, but there can be no assurance that management�s expectations, beliefs or projections will result, or be achieved, or accomplished.

PHAZAR CORP AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS FOR THE PERIODS ENDED FEBRUARY 28, 2009 AND FEBRUARY 29, 2008 � � � � (Unaudited) � � Three Months Ended Nine Months Ended

February 28,

February 29,

February 28,

February 29,

2009 2008 2009 2008 � Sales and contract revenues $ 1,512,889 3,204,698 5,649,768 6,793,815 Cost of sales and contracts 955,875 � 1,995,111 � 3,770,616 � 4,215,311 � � Gross Profit 557,014 1,209,587 1,879,152 2,578,504 Gross Profit Margin 36.8 % 37.7 % 33.3 % 38.0 % � Sales and administration expenses 940,294 � 766,269 � 2,544,434 � 1,791,934 � � Operating Profit (loss) (383,280 ) 443,318 (665,282 ) 786,570 � � Other Income Interest income 15,210 5,496 134,758 28,335 Other income 4,243 � 47,826 � 41,073 � 102,183 � � Total Other Income 19,453 � 53,322 � 175,831 � 130,518 � � Income (loss) from operations before income taxes (363,827 ) 496,640 (489,451 ) 917,088 � � Income tax provision (benefit) (122,788 ) 162,373 � (189,501 ) 292,355 � � Net income (loss) $ (241,039 ) 334,267 � (299,950 ) 624,733 � � � � � Basic earnings (loss) per common share $ (.10 ) .14 � (.13 )

.27

� � Diluted earnings (loss) per common share $ (.10 ) .14 � (.13 ) .27 � � � � Weighted Average Shares Outstanding Basic 2,366,072 2,353,168 2,364,696 2,335,351 Diluted 2,366,072 2,360,266 2,364,696 2,342,449 �

PHAZAR CORP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

FEBRUARY 28, 2009 AND MAY 31, 2008

� �

ASSETS

February 28, 2009 May 31, 2008 (Unaudited) (Audited) CURRENT ASSETS Cash and cash equivalents

$

3,753,098

$ 2,446,563 Accounts receivable:

Trade, net of allowance for doubtful accounts of $2,002 as of February 28, 2009 and May 31, 2008

674,477 987,258 Inventories 2,502,826 1,777,335 Prepaid expenses and other assets 65,448 47,761 Income taxes receivable 327,446 169,597 Deferred income taxes � 67,697 � � 67,697 � Total current assets 7,390,992 5,496,211 � Property and equipment, net 1,062,911 939,084 Marketable securities 0 2,346,840 Long � term deferred income tax � 130,362 � � 178,739 � TOTAL ASSETS $ 8,584,265 � $ 8,960,874 � � � LIABILITIES AND SHAREHOLDERS� EQUITY CURRENT LIABILITIES Accounts payable $ 251,944 $ 298,192 Accrued liabilities 360,733 462,679 Deferred revenues � 0 � � 315,654 � Total current liabilities 612,677 1,076,525 � TOTAL LIABILITIES � 612,677 � � 1,076,525 � � COMMITMENTS AND CONTINGENCIES - - � SHAREHOLDERS� EQUITY Preferred Stock, $1 par, 2,000,000 shares authorized, none issued or outstanding, attributes to be determined when issued - -

Common stock, $0.01 par, 6,000,000 shares authorized 2,369,928 and 2,357,728 issued and outstanding

23,700 23,578 Additional paid in capital 3,937,048 3,723,278 Treasury stock , at cost, 11,254 shares in 2009 (26,788 ) 0 Retained earnings 4,037,628 4,337,579 Accumulated other comprehensive loss, net of tax � 0 � � (200,086 ) Total shareholders� equity � 7,971,588 � � 7,884,349 � � TOTAL LIABILITIES AND SHAREHOLDERS� EQUITY $ 8,584,265 � $ 8,960,874 � �

PHAZAR CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED FEBRUARY 28, 2009 AND FEBRUARY 29, 2008

� (Unaudited) Nine Months Ended

February 28,

2009

�

February 29,

2008

� CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (299,950 ) $ 624,733

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 83,567 85,262 Stock based compensation 213,881 105,345 Tax benefit for employee stock options exercised - (74,106 ) Deferred federal income tax (54,685 ) (19,456 ) Changes in assets and liabilities: Accounts receivable 312,781 (900,561 ) Inventory (725,491 ) (139,338 ) Income taxes receivable (157,851 ) 176,605 Prepaid expenses (17,687 ) 17,368 Accounts payable (46,248 ) 175,657 Accrued expenses (101,946 ) (44,662 ) Deferred revenues � (315,654 ) � - � NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (1,109,283 ) 6,847 � CASH FLOWS FROM INVESTING ACTIVITIES: Redemption of marketable securities 2,650,000 - Purchase of property and equipment (207,394 ) - Purchase of treasury stock � (26,788 ) � - � NET CASH PROVIDED BY INVESTING ACTIVITIES 2,415,818 - �

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options - 78,000 FIT benefit-stock options exercised � - � � 74,106 � NET CASH PROVIDED BY FINANCING ACTIVITIES - 152,106 � Net change in cash and cash equivalents 1,306,535 158,953 Cash and cash equivalents, beginning of period � 2,446,563 � � 4,114,046 � Cash and cash equivalents, end of period $ 3,753,098 � $ 4,272,999 �