Numerex Corp… Financially Speaking…

[SatNews] Numerex Corp (Nasdaq: NMRX), a single source provider of secure machine-to-machine (M2M) products and services, has announced financial results for its second quarter ended June 30, 2010.

Digital subscriptions increased to 1,027,000 at the end of the second quarter of 2010. This compares with 799,000 recorded at the end of the second quarter of 2009, reflecting a 29 percent growth rate. New subscriptions of 50,000 were added during the second quarter of 2010.

A year-over-year growth rate of 18 percent in recurring M2M service revenues, excluding the contribution of deferred revenues recognized during the second quarter of 2009. For the quarter ended June 30, 2010, Numerex reported consolidated revenue of $14.9 million compared to $12.6 million in the second quarter of 2009. During the quarter, the Company reported service revenues of $8.4 million and hardware revenues of $6.5 million compared to $7.7 million in service revenues and $4.9 million in hardware revenues, during the same period last year.

Consolidated gross margin for the three months ended June 30, 2010 was 43.0 percent compared to 45.1 percent during the same period last year. The decrease in gross margin percentage was driven by the higher levels of lower margin hardware revenues during the second quarter of 2010. GAAP income from operations was $384,000 compared to a GAAP loss from operations of $422,000 in the second quarter of 2009. Net earnings for the second quarter of 2010 were $387,000 compared to a net loss of $792,000 for the same period last year. Non-GAAP net income before non-cash charges and litigation related legal fees was $1.8 million during the second quarter of 2010 compared to $0.8 million for the same period last year. To read the entire financial release, access this direct link.