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Globecomm Systems Reports Fiscal 2011 First Quarter Financial Results

Globecomm Systems Inc. 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:

 

  • Service revenues increased 50.1% to a record $42.9 million as compared to $28.6 million in the same period last year.
  • Revenues from infrastructure solutions decreased by 46.1% to $10.3 million as compared to $19.1 million in the same period last year.
  • Consolidated revenues increased 11.6% to $53.2 million as compared to $47.7 million in the same period last year.
  • GAAP earnings per diluted share increased 67% to $0.10 in the first quarter of fiscal 2011 as compared to GAAP earnings per diluted share of $0.06 in the same period last year.
  • Adjusted EBITDA was $6.4 million in the first quarter of fiscal 2011 as compared to $4.0 million in the same period last year.

 

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:

  • Consolidated revenues to be between $290 and $305 million.
  • Service segment revenues to be approximately $175 million.
  • GAAP diluted net income per common share to be between $0.50 and $0.55.
  • Adjusted EBITDA to be between approximately $28 and $29 million.