Globecomm Systems Reports Rise in Revenues to $29.2 Million

HAUPPAUGE, N.Y., Feb. 3/Satnews Daily/ — Globecomm Systems Inc. (NASDAQ: GCOM) said on Wednesday its revenues for fiscal 2005 second quarter ended December 31, 2004 rose by 23.3 percent to $29.2 million, compared to $23.7 million in the same period last year.

The company said its net income for fiscal 2005 second quarter rose by 252 percent to $1.0 million, or $0.07 per diluted share, compared to a net loss of $0.7 million, or $0.05 per diluted share, in the second quarter of fiscal 2004. Globecomm attributed the turnaround to an increase in revenues and an improvement in the overall gross margin.

Revenues for the company's fiscal 2005 six-months ended December 31, 2004 also increased 23.8 percent to a record $54.7 million, compared to $44.2 million in the same period last year. The company stated the increase in revenues was the result of increased infrastructure sales activity in the government marketplace and a general overall improvement in the telecommunications industry segments.

Net income for the first six-months increased 378.0 percent to $3.2 million, or $0.21 per diluted share, compared to a net loss of $1.1 million, or $0.09 per diluted share, in the same period last year.

Net income for the six-months ended includes $2.4 million ($0.16 per diluted share) in non-recurring gains relating to a settlement with a major customer. The net loss for the six-months ended December 31, 2003 was reduced by a $1.0 million ($0.08 per diluted share) cash recovery in connection with a previously announced termination of services by a major customer in the Middle East.

David Hershberg, chairman and CEO said end-user demand for the company’s products and services designed around Internet Protocol continuing to grow. “Satellite and terrestrial networks ranging from requirements for the battlefield, homeland security initiatives, next generation networks and voice over the Internet, amongst other IP applications, open up an array of opportunities to the company in the future,” he said.

"Globecomm entered the third quarter with $30 million of cash, no debt and no amounts outstanding under the new $16.5 million credit facility announced during the second quarter other than secured letters of credit. The strength of our balance sheet should support the company's current growth phase for the foreseeable future,” Hershberg added.

Globecomm said in a statement it continues to expect consolidated revenues for the full year to exceed $105 million. The company said it anticipates achieving full year profitability at this revenue level, excluding the non-recurring gains totaling $2.4 million for the six-months ended December 31, 2004.

Recent Stories:

Globecomm Awarded $5.7 Million Contract From a DTH Provider

Globecomm Systems Awarded $4.2 Million Multiple Contracts

Globecomm Systems Awarded $1.3 Million Follow-on Contract 

Globecomm Systems Awarded $1.9 Million Multiple Contracts From a Global Multilateral Organization