[SatNews] Globecomm Systems Inc. (NASDAQ:GCOM) has announced financial results for the fiscal 2011 fourth quarter and fiscal year ended June 30, 2011.
Globecomm is reporting its financial results on a generally accepted accounting principles (GAAP) basis as well as adjusted EBITDA and adjusted diluted net income per common share, both non-GAAP financial measures, for which the Company provides detailed reconciliations on the attached tables. The following are highlights:
- Service revenues for the quarter increased 32.7 percent to a record $52.5 million as compared to $39.6 million in the same period last year. For the twelve months ended June 30, 2011, service revenues increased 39.0 percent to a record $188.7 million as compared to $135.8 million last year
- Consolidated revenues for the quarter increased 25.6 percent to a record $88.3 million as compared to $70.3 million in the same period last year. For the twelve months ended June 30, 2011, consolidated revenues increased 20.4 percent to a record $274.2 million as compared to $227.8 million last year
- Adjusted EBITDA for the quarter increased 45.9 percent to a record $10.2 million as compared to $7.0 million in the same period last year. For the twelve months ended June 30, 2011, adjusted EBITDA increased 62.3 percent to a record $33.9 million as compared to $20.9 million last year
- Adjusted diluted net income per common share for the quarter increased 53.8 percent to a record $0.20 as compared to $0.13 last year. For the twelve months ended June 30, 2011, adjusted diluted net income per common share increased 77.1 percent to $0.62 as compared to $0.35 last year
- Diluted net income per common share for the quarter decreased 47.4 percent to $0.10 as compared to $0.19 last year. For the twelve months ended June 30, 2011, diluted net income per common share increased 7.9 percent to $0.41 as compared to $0.38 last year
Revenues for the Company’s fiscal 2011 fourth quarter increased 25.6 percent to a record $88.3 million as compared to $70.3 million in the same period last year. Revenues from services increased 32.7 percent to a record $52.5 million as compared to $39.6 million in the same period last year. Growth in the Company’s access and hosted product lines were the primary drivers of the quarterly revenue growth, coupled with a three month contribution from Globecomm’s acquisition of ComSource completed on April 8th, 2011. In particular, the Company continues to see strength in the wireless and government vertical marketplaces.
Revenues from infrastructure solutions increased by 16.5 percent to $35.7 million as compared to $30.7 million in the same period last year. The Company’s infrastructure government business unit is experiencing growth during difficult economic times. Globecomm expects infrastructure solutions revenues to experience quarter-to-quarter shifts and may reduce as a percentage of the Company’s overall consolidated revenues as the service segment continues to expand.
Net income for the Company’s fiscal 2011 fourth quarter decreased to $2.2 million, or $0.10 diluted net income per common share, as compared to net income of $4.0 million, or $0.19 diluted net income per common share in the same period last year. In the fiscal 2011 fourth quarter the Company recorded the following adjustments:
- A previously announced $1.9 million ($0.08 per diluted share) charge for the remaining earn-out obligation with respect to the Company’s acquisition of Carrier to Carrier Telecom B.V. and Evolution Communications Limited (C2C/Evocomm). This charge, while accelerated, resulted from the change in fair value of the earn-out as a result of the better than expected performance of the two entities
- Globecomm anticipates that this saved the Company up to $1.0 million in future charges based on the continued improved performance of the two entities and has allowed management to focus on accelerating synergies as the Company proceeds with integration of acquired entities. A $0.4 million ($0.02 per diluted share) charge for an increase in the fair value of the earn-out resulting from the Company’s acquisition of ComSource completed on April 8, 2011
