TeleCommunication Systems Reports Fourth Quarter and Full Year 2014 Results

Annapolis, MD, Feb. 5, 2015- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), reported results for the fourth quarter and fiscal year ended December 31, 2014. Revenue was up 19% from the fourth quarter of 2013. Adjusted EBITDA of US $9.9 million (earnings before interest, taxes, depreciation, amortization, and amortization of non-cash stock-based compensation) was up 14% from $8.8 million in the year-ago quarter; this was the company's third consecutive quarter of EBITDA improvement.

Adjusted net income was US$ 3.6 million or $0.06 per diluted share, an improvement of US$ 2.3 million or $0.04 from the fourth quarter of 2013's $1.3 million and $0.02 per diluted share. GAAP net loss per diluted share was $(0.01) compared to $(0.95) in the year-ago quarter. GAAP net loss for Q4 2013 included a $32 millionpre-tax, non-cash impairment charge to write down the Platforms and Applications reporting unit's goodwill and other intangibles, and $21.2 million non-cash income tax charge to establish a valuation allowance on deferred tax assets.

"Our fourth quarter's adjusted EBITDA results completed 2014 at about the midpoint of our year-ago investor guidance," said Maurice B. Tose, TCS chairman and CEO. "After the effect of lower capex including software development than in '13 (down from $19 million to $10 million), our '14 operating cash flow improved from $17 million in 2013 to $26 million.  And this is after spending about $1.3 million in the fourth quarter to right-size our cohort of software developers, and as such we no longer have employees in China. This further improves our cost and efficiency profile going into 2015, as efficiency measures taken in 2013 lowered year-over-year 2014 corporate SG&A by about $7 million, Tose added.