During the first quarter of 2012, revenue was $100 million, up 11 percent from $90.4 million in the same year-ago quarter, representing record first quarter revenue. Gross profit was $34.4 million, down 6 percent from the same year-ago quarter, reflecting a less favorable mix of margin contributors. EBITDA (Earnings before Interest, Taxes, Depreciation, Amortization and non-cash stock-based compensation) was $11.5 million versus $15.3 million in the same year-ago quarter. (See discussion about the presentation of EBITDA and Adjusted Net Income, non-GAAP terms, below.) Adjusted net income was $3.2 million or $0.06 per diluted share, compared to $7.9 million or $0.13 per diluted share in the first quarter of 2011. GAAP net loss was $0.4 million or $(0.01) per share, versus GAAP net income of $2.1 million or $0.04 per share in the same year-ago quarter.
"Our record first quarter revenue was driven by growth in TotalCom(TM) solutions for federal government customers, as well as by growth from our commercial 9-1-1 services for network operators and state and local governments," stated Maurice B. Tose, TCS chairman and CEO. "Long sales cycles that began years ago for expanded government business, including new and increased contract vehicles, are progressing as expected, while we continue to invest in process infrastructure for more efficient handling of higher volume communication solution sales.
"Our commercial applications and infrastructure team is shifting emphasis toward network security solutions that leverage the company's expertise and relationships in cellular network architecture and device location, as carriers continue to adapt application sales strategies to a changing market. Mobile threats are becoming increasingly prolific as smart devices gain popularity. CIOs are quickly grasping the notion that mobile malware will likely evolve as did PC-based threats, and that similar protection and detection measures will be necessary. TCS's Secure the Edge(TM) initiative addresses the need for new edge device security and user authentication through carriers and other channels.
"Progress is being made on monetizing our growing portfolio of proprietary intellectual property. We expect long-term profit growth to come from enabling secure and reliable communications for government and enterprises, and the growing number of consumers who are increasingly aware of wireless communication cyber-risks." To read the complete financial report, access this direct link.