|View printer-friendly version|
|Globecomm Systems Reports Fiscal 2011 First Quarter Financial Results|
HAUPPAUGE, N.Y., Nov 04, 2010 (BUSINESS WIRE) --
Globecomm Systems Inc. (NASDAQ:GCOM), a leading global provider of satellite-based managed network solutions, today announced financial results for the fiscal 2011 first quarter ended September 30, 2010. Globecomm is reporting its financial results on a generally accepted accounting principles (GAAP) basis as well as reporting adjusted EBITDA, a non-GAAP financial measure, for which the Company provides a detailed reconciliation on the attached table. A summary of the Company's results are:
Fiscal Year 2011 First Quarter Results
Revenues for the Company's fiscal 2011 first quarter increased 11.6% to $53.2 million compared to $47.7 million in the same period last year. Revenues from services increased 50.1% to a record $42.9 million as compared to $28.6 million in the same period last year. The increase in service revenue was primarily driven by an increase in access service offering coupled with the Company's acquisitions of C2C and Evocomm, which combined contributed $4.3 million. Revenues from infrastructure solutions decreased by 46.1% to $10.3 million compared to $19.1 million in the same period last year. The decrease in infrastructure solution revenues was primarily caused by the timing of revenue milestones and by the global economic slowdown resulting in government and commercial customers and prospects delaying projects. Net income for the Company's fiscal 2011 first quarter increased to $2.1 million or $0.10 per diluted share compared to net income of $1.2 million, or $0.06 per diluted share in the same period last year. Adjusted EBITDA for the first quarter of 2011 increased to $6.4 million as compared to $4.0 million in the first quarter of 2010.
Management's Review of Results and Expectations
David Hershberg, Chairman and CEO, said "From an earnings perspective, the first quarter was stronger than originally anticipated. Infrastructure revenues came in as planned and we witnessed very strong related bookings in the first quarter, enabling what should be an increase over the prior year. We look forward to what is anticipated to be a record financial year and to the introduction of new products and service offerings."
Keith Hall, President and COO, added "We are excited about recent infrastructure bookings and look for continued financial improvement for the overall business in the back half of the year. Our new subsidiaries C2C and Evocomm have performed as expected and have helped us achieve record service performance levels in Q1. The balance of organic and external growth remains strong and the team is executing well."
Management's Current Expectations for the Fiscal Year Ending June 30, 2011
Globecomm currently expects the following financial results for the fiscal year 2011:
Adjusted EBITDA is a non-GAAP measure which represents net income before interest income, interest expense, provision for income taxes, depreciation, amortization expense, non-cash stock compensation expense, acquisition costs and non-cash charges related to the valuation of contingent earn-out payments. Globecomm believes this provides greater transparency by helping illustrate comparability between current and prior periods. Under a new accounting pronouncement on business combinations, effective in fiscal 2010 for the Company, acquisition-related transaction expenses are required to be expensed rather than capitalized, and the fair value of contingent earn-out payments must be recognized as well as any changes in such fair value. Therefore, the exclusion of acquisition costs and non-cash charges related to the valuation of contingent earn-out payments in the Adjusted EBITDA calculation provides better comparability.
Adjusted EBITDA does not represent cash flows as defined by GAAP. Globecomm discloses adjusted EBITDA since it is a financial measure commonly used in its industry. Because adjusted EBITDA facilitates internal comparisons of our historical financial position and operating performance on a more consistent basis, the Company also uses adjusted EBITDA in measuring performance relative to that of our competitors and in evaluating acquisition opportunities. The Company's management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate the Company's business and make operating decisions. Adjusted EBITDA is not meant to be considered a substitute or replacement for net income as prepared in accordance with GAAP. Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Reconciliation between GAAP net income and adjusted EBITDA is provided in a table immediately following the Condensed Consolidated Balance Sheets.
About Globecomm Systems
Globecomm Systems Inc., or Globecomm, is a leading global provider of satellite-based managed network solutions. Employing our expertise in emerging communication technologies we are able to offer a comprehensive suite of system integration, system products, and network services enabling a complete end-to-end solution for our customers. We believe our integrated approach of in-house design and engineering expertise combined with a world-class global network and our 24 by 7 network operating centers provides us a unique competitive advantage. We are now taking this value proposition to selective vertical markets, including government, wireless, media, enterprise, and maritime. As a network solution provider we leverage our global network to provide customers managed access services to the United States Internet backbone, video content, the public switched telephone network or their corporate headquarters, or government offices. We currently have customers for which we are providing such services in the United States, Europe, South America, Africa, the Middle East, and Asia.
Based in Hauppauge, New York, Globecomm Systems also maintains offices in Maryland, New Jersey, Virginia, the Netherlands, South Africa, Hong Kong, Germany, Singapore, the United Arab Emirates and Afghanistan.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and observations. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to certain risks, uncertainties and assumptions that are difficult to predict. Our forward-looking statements are based on the information currently available to us and speak only as of the date of this press release. Over time, our actual results, performance or achievements may differ from those expressed or implied by our forward-looking statements, and such differences might be significant and materially adverse to our security holders.
We have identified some of the important factors that could cause future events to differ from our current expectations and they are described in our most recent Annual Report on Form 10-K, including without limitation under the captions ''Risk Factors'' and ''Management's Discussion and Analysis of Financial Condition and Results of Operations,'' and in other documents that we may file with the SEC, all of which you should review carefully. Please consider our forward-looking statements in light of those risks as you read this press release.
SOURCE: Globecomm Systems Inc.
Globecomm Systems Inc.
Globecomm provides specialized communications products to support its global service offerings for media, wireless, government, maritime and enterprise customers.
Summit fixed earth station antennas come in configurations ranging from sub-meter up to Standard A, customized for each installation from a field-proven set of blocks that provides high reliability satcom and fast turn-up at a very competitive price.
Summit earth station antennas include all satcom electronics (L through Ka-band and all intermediate frequencies) needed to meet the customer's requirements for transmit, receive and interface to terrestrial networks, either integrated into the antenna or within a separate shelter or building.
Inmarsat's FleetBroadband (FB) service is a global high speed voice & data maritime service offering all the connectivity of an office but available via a small, easy-to-use device with a compact antenna. Users have a choice of FB hardware, delivering up to 432 kbps through simultaneous voice & data connections for email, Internet, telephone & fax. Read more »
Globecomm offers the full range of Inmarsat terrestrial terminals from the leading manufacturers as well as airtime for services.
AxxSys Orion is the next generation of Globecomm's popular network management system. A robust, scalable platform, AxxSys Orion monitors and controls all of the terrestrial elements of a satellite communications network and integrates them with ground-based telecom sytems, from routers to microwave, fiber to wireless.
The Tempo Core System and Media Appliance provide the capabilities of our Tempo Enterprise Media Platform to organizations that prefer to manage their own communications infrastructure. Implemented in the enterprise network, they enable rich content distribution via enterprise WAN, Internet CDN, satellite or a combination of them all.