TeleCommunication Systems Inc. (TSYS, Financial) filed Quarterly Report for the period ended 2011-03-31.
Telecommunication Systems Inc. has a market cap of $250.2 million; its shares were traded at around $4.42 with a P/E ratio of 12.6 and P/S ratio of 0.6. Telecommunication Systems Inc. had an annual average earning growth of 47.9% over the past 5 years.
Commercial services revenue in the first quarter of 2011 was $44.2 million, up $4.9 million from the first quarter of 2010 from increased sales of LBS, including navigation, maintenance and E9-1-1 services revenue as well as an increase in subscriber applications revenue.
The direct cost of our commercial services revenue consists primarily of compensation and benefits, network access, data feed and circuit costs for network operation centers and co-location facilities, and equipment and software maintenance. For the three-months ended March 31, 2011, the direct cost of commercial services revenue increased 5% compared to the first quarter of 2010, reflecting an increase in labor and direct costs related to custom development efforts responding to customer requests, and deployment requirements for wireless and VoIP E-9-1-1. The direct cost of services includes amortization of capitalized software development costs of $1.7 million and $1.6 million in the three-months ended March 31, 2011 and 2010, respectively.
Commercial services gross profit was $24.4 million and $20.0 million for the three-months ended March 31, 2011 and 2010, respectively, based on higher revenue. Commercial services gross profit was approximately 53% of revenue for the first quarters of both 2010 and 2011.
Commercial systems revenue was $4.8 million for the three-months ended March 31, 2011 compared to $8.6 million during the three-months ended March 31, 2010. The decrease is primarily due to lower sales of text messaging software licenses for incremental capacity, partly offset by higher revenue from sales of location-based infrastructure systems. The rate of growth in the use of text messaging has declined, affecting our sales of new licenses, and no messaging license sales are expected in the balance of 2011.
Our commercial systems gross profit was $1.6 million in the three-months ended March 31, 2011 versus $5.2 million in the comparable period of 2010. Commercial systems gross profit was approximately 33% and 60% of revenue for the three-months ended March 31, 2011 and 2010, respectively, down due to less high-margin license revenue, partially offset by higher location systems gross profit in the 2011 first quarter.
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Telecommunication Systems Inc. has a market cap of $250.2 million; its shares were traded at around $4.42 with a P/E ratio of 12.6 and P/S ratio of 0.6. Telecommunication Systems Inc. had an annual average earning growth of 47.9% over the past 5 years.
Highlight of Business Operations:
On January 31, 2011, the Company acquired privately-held Trident Space & Defense, LLC, a leading provider of engineering and electronics solutions for global space and defense markets, located in Torrance, California. Total consideration for the acquisition was $29.8 million including, $17.5 million paid in cash and $12.3 million or approximately three million shares of our Class A common stock. Substantially all of the Trident revenue stream is from the supply of highly reliable electronic parts, materials, radiation tolerant components, products and services for areospace, military and industrial markets. Trident adds engineering and design depth to our government solution operations. The Company believes Trident will help expand the overall market reach of the combined entities. Most of Tridents business is from international customers to which the Company intends to sell other products and services, and the Company expects to sell Tridents solutions to the U.S. military and space markets. The newly acquired business operations are included in our Government Segment.Commercial services revenue in the first quarter of 2011 was $44.2 million, up $4.9 million from the first quarter of 2010 from increased sales of LBS, including navigation, maintenance and E9-1-1 services revenue as well as an increase in subscriber applications revenue.
The direct cost of our commercial services revenue consists primarily of compensation and benefits, network access, data feed and circuit costs for network operation centers and co-location facilities, and equipment and software maintenance. For the three-months ended March 31, 2011, the direct cost of commercial services revenue increased 5% compared to the first quarter of 2010, reflecting an increase in labor and direct costs related to custom development efforts responding to customer requests, and deployment requirements for wireless and VoIP E-9-1-1. The direct cost of services includes amortization of capitalized software development costs of $1.7 million and $1.6 million in the three-months ended March 31, 2011 and 2010, respectively.
Commercial services gross profit was $24.4 million and $20.0 million for the three-months ended March 31, 2011 and 2010, respectively, based on higher revenue. Commercial services gross profit was approximately 53% of revenue for the first quarters of both 2010 and 2011.
Commercial systems revenue was $4.8 million for the three-months ended March 31, 2011 compared to $8.6 million during the three-months ended March 31, 2010. The decrease is primarily due to lower sales of text messaging software licenses for incremental capacity, partly offset by higher revenue from sales of location-based infrastructure systems. The rate of growth in the use of text messaging has declined, affecting our sales of new licenses, and no messaging license sales are expected in the balance of 2011.
Our commercial systems gross profit was $1.6 million in the three-months ended March 31, 2011 versus $5.2 million in the comparable period of 2010. Commercial systems gross profit was approximately 33% and 60% of revenue for the three-months ended March 31, 2011 and 2010, respectively, down due to less high-margin license revenue, partially offset by higher location systems gross profit in the 2011 first quarter.
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