PHAZAR CORP. : 19 Jan 2012 News Release - 2nd Quarter FY2012

PHAZAR CORP

101 S.E. 25th Avenue, Mineral Wells, Texas 76067 [phone] NEWS RELEASE

January 19, 2012

PHAZAR CORP ANNOUNCES FISCAL SECOND QUARTER 2012 FINANCIAL RESULTS

PHAZAR CORP, (NASDAQ: ANTP) designs, manufactures and markets antennas, towers, support structures, masts and communication accessories worldwide. Today, PHAZAR CORP announces the unaudited results of operations for the three and six month periods ended December 31, 2011.

Second Quarter Fiscal Year 2012

Revenues for the quarter were $2,092,367 down $66,460, or 3% from $2,158,827 for the second quarter of

fiscal year 2011. The sales declines are largely attributable to the same factors that impacted first fiscal quarter, significantly lower FAA related sales and lower commercial sales as wireless antenna projects continued to be delayed because of the now canceled ATT-T Mobile combination. The gross profit margin for the quarter, at

39% is down 3 basis points from the 42% gross margin reported in the comparable period last year.

Sales and administrative expenses were up 29% to $719,588 from $555,949 in the prior year, reflecting a higher level of marketing wages and commission expense. Research and development costs of $127,398 were also up

$112,422 from $14,976 last year primarily due to engineering costs on new antenna designs.

The Company recognized net income of $4,471, or $0.00 per share for the second quarter, compared to a net income of $23,682, or $0.01 per share, in last year's fiscal second quarter.

Six Month Period Ending December 31, 2011

The Company reported revenues for the six-month period of $3,507,585, a decrease of $1,175,381, or 25%

compared to $4,682,966 for the comparable period last year. Net loss for the six-month period was $115,784, or

$0.05 per share compared to a net income of $276,385, or $0.12 per share for the comparable period last year.

Backlog of Orders

The Company's backlog of orders on December 31, 2011, totaled $1,442,802, down 49% compared to backlog of $2,815,511 at December 31, 2010 and down 37% from June 30, 2011. Incoming orders for the six-month period ended December 31, 2011 totaled $2,693,051 versus $5,138,588 for the six-month period ended December 31, 2010, a decrease of 48% year over 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 second quarter ended December 31, 2011, estimated to be filed with the Securities and Exchange Commission in late February,

2012.

The Form 10-Q will also be available at the SEC's website at www.sec.govand PHAZAR CORP's website at www.phazarcorp.com.

Product information is available at www.antennaproducts.comand www.phazar.com.

For further information contact:

Kathy Kindle, PHAZAR CORP

Tel: [phone] Fax: [phone] [e-mail]

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 STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended December 31, December 31, 2011 2010 2011 2010

(Unaudited) (Unaudited)

Sales and contract revenues $ 2,092,367 $ 2,158,827 $ 3,507,585 $ 4,682,966

Cost of sales and contracts 1,273,062 1,244,188 2,052,381 2,503,955

Gross profit	819,305	914,639	1,455,204	2,179,011
Gross profit margin %	39%	42%	41%	47%

Selling, general and administration expenses 719,588 555,949 1,464,958 1,137,092

Research and development costs 127,398 14,976 226,860 29,240

Total selling, general and administration expenses 846,986 570,925 1,691,818 1,166,332
Operating income (loss) (27,681) 343,714 (236,614) 1,012,679
Other income
Interest income (net) 29,585 14,257 67,877 27,546

Other income 4,871 9,096 11,351 21,770

Total other income 34,456 23,353 79,228 49,316
Income (loss) from operations before income taxes 6,775 367,067 (157,386) 1,061,995

Income tax expense (benefit) 2,304 104,835 (53,511) 341,111

Net income (loss) before discontinued operations 4,471 262,232 (103,875) 720,884
Loss from discontinued operations - (361,439) (18,044) (673,483) Income tax benefit from discontinued operations - 122,889 6,135 228,984
Net loss from discontinued operations - (238,550) (11,909) (444,499)
Net income (loss) $ 4,471 $ 23,682 $ (115,784) $ 276,385
Basic income (loss) per common share
Continuing operations $ - $ 0.11 $ ( 0.04) $ 0.31

Discontinued operations - (0.10) (0.01) (0.19)Net income (loss) $ - $ 0.01 $ (0.05) $ 0.12

Diluted income (loss) per common share
Continuing operations $ - $ 0.11 $ (0.04) $ 0.31

Discontinued operations - (0.10) (0.01) (0.19)Net income (loss) $ - $ 0.01 $ (0.05) $ 0.12

Basic weighted average of common shares outstanding	2,313,569	2,305,713	2,312,346	2,305,186
Diluted weighted average of common shares outstanding	2,313,569	2,318,677	2,312,346	2,306,908

PHAZAR CORP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2011 June 30, 2011

(Unaudited)

CURRENT ASSETS
Cash and cash equivalents $ 1,428,590 $ 1,169,318
Accounts receivable:
Trade, net of allowance for doubtful accounts of $0
as of December 31, 2011 and June 30, 2011 447,506 785,665
Inventories 2,647,304 2,732,232
Prepaid expenses and other assets 62,994 125,989
Income taxes receivable 261,321 236,366

Deferred income taxes 224,875 224,875

Total current assets 5,072,590 5,274,444
Property and equipment, net 1,015,993 1,043,435
Note receivable 1,219,919 963,684

Long - term deferred income tax 286,129 252,617

TOTAL ASSETS $ 7,594,631 $ 7,534,180
CURRENT LIABILITIES
Accounts payable $ 239,073 $ 216,575
Accrued liabilities 455,462 284,969
Deferred revenues 21,973 2,355

Liabilities held for discontinued operations 114,571 178,060

Total current liabilities 831,079 681,959

TOTAL LIABILITIES $ 831,079 $ 681,959

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
2,388,828 and 2,385,128 issued and outstanding on December 31, 2011
and June 30, 2011, respectively 23,889 23,852

Additional paid in capital	4,544,311	4,517,234
Treasury stock, at cost, 74,691 shares on December 30, 2011 and June 30, 2011	(215,918)	(215,918)

Retained earnings 2,411,270 2,527,053

Total shareholders' equity 6,763,552 6,852,221

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,594,631 $ 7,534,180

PHAZAR CORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended December 31, 2011 December 31, 2010

(Unaudited) (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss) $ (115,784) $ 276,385
Adjustments to reconcile net income (loss) to net cash provided (used in) operating activities:
Changes in operating assets and liabilities:
Accounts receivable 338,158 (471,840) Inventories 84,928 (610,117) Income taxes receivable (24,955) 192,769
Prepaid expenses 62,995 7,836
Accounts payable 22,498 (143,833) Accrued expenses 170,493 171,214
Deferred revenues 19,618 22,647

Net cash used in discontinued operations (75,398) (175,918)Net cash provided by (used in) operating activities 552,757 (177,596)

CASH FLOWS FROM INVESTING ACTIVITIES:

Funding of note receivable (256,235) (125,000)

Purchase of property and equipment (37,250) (16,003)Net cash used in investing activities (293,485) (141,003)

Net increase (decrease) in cash and cash equivalents 259,272 (318,599) CASH AND CASH EQUIVALENTS, beginning of period 1,169,318 1,403,839
CASH AND CASH EQUIVALENTS, end of period $ 1,428,590 $ 1,085,240