Globecomm reported fiscal 2012 second quarter revenues increasing by 35.5% to a record US$95.2 million as compared to US $70.2 million in the same period last year. Revenues from service increased 15.6% to a record $54.7 million, as compared to $47.3 million in the same period last year. The increase in service revenue was primarily driven by the company’s acquisition of ComSource, completed on April 2011, which contributed $6.4 million, coupled with an increase in scope on a major government program in the Middle East.
Revenue from infrastructure solutions increased 76.4% to $40.5 million, as compared to $23.0 million in the same period last year. The increase in infrastructure solutions revenues was primarily driven by revenues on a major government contract announced on September 8, 2011, which carries lower than traditional infrastructure margins and a revenue milestone achieved on a major wireless infrastructure contract.
Net income for the company’s fiscal 2012 second quarter increased to $9.3 million or $0.41 per diluted share as compared to net income of $1.7 million, or $0.08 per diluted share in the same period last year. During the second quarter of fiscal 2012, the company recorded a gain for the change in fair value of the earn-out as a result of recent changes in the forecasted performance of the previously announced acquisition of ComSource. In accordance with GAAP, this change in the fair value of the earn-out resulted in a $4.1 million ($0.18 per diluted share) gain to net income. In the same period last year, the company recorded a $2.0 million charge ($0.09 per diluted share) relating to the previously announced acquisition of C2C and Evocomm and non-recurring tax adjustments benefit of $0.3 million ($0.02 per diluted share).
Excluding these charges, adjusted net income per diluted share increased 53.3% to $0.23 as compared to $0.15 in the same period last year. Adjusted EBITDA for the company’s fiscal 2012 second quarter increased to a record $12.0 million as compared to $8.1 million in the same period last year. The increase in adjusted EBITDA is primarily attributable to the operating leverage the company is currently experiencing in the service segment as economies of scale are being recognized on a higher revenue base.
Some highlights of Globecomm's Fiscal 2012 second quarter report:
- Service revenues for the quarter increased 15.6% to a record $54.7 million as compared to $47.3 million in the same period last year. For the six months ended December 31, 2011, service revenues increased 16.3% to a record $104.9 million as compared to $90.2 million in the same period last year.
- Infrastructure revenues for the quarter increased 76.4% to $40.5 million as compared to $23.0 million in the same period last year.
- Consolidated revenues for the quarter increased 35.5% to a record $95.2 million as compared to $70.2 million in the same period last year.
- GAAP diluted net income per common share of $0.41 for the quarter as compared to $0.08 in the same period last year. Adjusted diluted net income per common share for the quarter increased 53.3% to $0.23 as compared to $0.15 in the same period last year.
- Adjusted EBITDA for the quarter increased 47.5% to a record $12.0 million as compared to $8.1 million in the same period last year.
