Numerex Corp. (Nasdaq: NMRX), a single source provider of secure machine-to-machine (M2M) products and services, has announced financial results for its first quarter ended March 31, 2010. Key results for the first quarter include:

• Digital subscriptions increased to 977,000 at the end of the first quarter of 2010. This compares with 758,000 recorded at the end of the first quarter of 2009, reflecting a 29 percent growth rate. Net new subscriptions of 40,000 were added during the first quarter of 2010
• A year-over-year growth rate of 22 percent in recurring M2M service revenues. During the first quarter of 2010, M2M service revenues as a percent of total M2M revenues were 62 percent compared to 53 percent during the same period last year
• For the quarter ended March 31, 2010, Numerex reported consolidated revenue of $13.0 million compared to $12.7 million in the first quarter of 2009. During the quarter, the company reported service revenues of $8.2 million and hardware revenues of $4.8 million compared to $7.0 million in service revenues and $5.7 million in hardware revenues, respectively, during the same period last year
• Gross margin for the three months ended March 31, 2010 was 44.2 percent compared to 41.9 percent during the same period last year. The continuing growth in M2M service revenues drives an overall margin improvement as service revenues have a significantly higher gross margin than those achieved through the sale of hardware
• GAAP income from operations was $46,000 compared to a GAAP loss from operations of $1.3 million in the first quarter of 2009
• Non-GAAP net income before non-cash charges and litigation related legal fees was $1.3 million during the first quarter of 2010 compared to $431,000 for the same period last year. A reconciliation of this measure to GAAP results has been provided in the financial tables included in the press release

To read the entire financial report, access this direct link.