Performance Technologies Inc. (PTIX, Financial) filed Quarterly Report for the period ended 2011-09-30.
Performance Technologies Inc. has a market cap of $20.23 million; its shares were traded at around $1.82 with and P/S ratio of 0.72.
Sales. Total revenue for the third quarter 2011 amounted to $9.0 million, compared to $6.3 million for the corresponding quarter in 2010. The sales increase in the third quarter is primarily attributable to sales through the Company s new alliance with GENBAND, sales through two European distributors, Kapsch CarrierCom AG and Nologin Consulting S.L., revenue from Globacom (Ghana, Africa), and sales to Rockwell-Collins, offset by the non-recurrence of the shipment to Starcomm PLC in the third quarter of 2010. During the third quarter 2011 and 2010, one customer, Metaswitch Networks, accounted for 14% and 22% of sales, respectively. In the third quarter 2011, two additional customers accounted for 14% and 10% of sales, respectively, while PT s four largest customers represented 47% of sales, compared to 40% of sales in the third quarter 2010. The Company s four largest customers comprised 43% and 41% of sales in the nine months ended September 30, 2011 and 2010, respectively.
Shipments to customers outside of the United States represented 53% and 67% of PT s sales during the third quarter of 2011 and 2010, respectively. Shipments to customers outside of the United States represented 48% and 61% of the Company s sales for the nine months ended September 30, 2011 and 2010, respectively. Total shipments to customers in the United Kingdom represented 15% of sales in the third quarter 2011, compared to 22% of sales in the third quarter 2010. One U.K. customer, Metaswitch Networks, represented 14% and 22% of sales in the third quarter 2011 and 2010, respectively. Total shipments to customers in the United Kingdom represented 23% and 28% of sales in the nine months ended September 30, 2011 and 2010, respectively.
Research and development expenses were $1.6 million and $1.8 million in the third quarter 2011 and 2010, respectively. The Company capitalizes certain software development costs, which reduces the amount of software development charged to operating expenses. Amounts capitalized were $.5 million and $.6 million during the third quarter 2011 and 2010, respectively. Research and development expenses were $5.3 million and $5.7 million for the nine months ended September 30, 2011 and 2010, respectively. Amounts capitalized to software development costs amounted to $1.7 million and $1.9 million in the nine months ended September 30, 2011 and 2010, respectively. The decreases in research and development expenses in 2011 over the comparable 2010 periods are primarily the result of a net decrease in the number of engineers in research and development due to the Company s restructuring actions, partially offset by the addition of software engineers to support the Company s new sales alliance with GENBAND.
For the nine months ended September 30, 2011, cash used by operating activities amounted to $.5 million. This amount reflects the net loss of ($1.6 million) offset by non-cash items including depreciation and amortization charges of $2.8 million, the impairment charge – vendor software of $.4 million and stock-based compensation expense of $.2 million. Cash used in operations due to changes in operating assets and liabilities included a decrease in cash associated with a $2.5 million increase in accounts receivable and a $2.6 million decrease in accounts payable and accrued expenses, partially offset by a $1.8 million decrease in inventories and a $1.4 million increase in deferred revenues. The decrease in inventories was a result of PT s decision to hold the level of inventory purchasing below the level of inventory usage in second and third quarters. The increase in deferred revenue resulted from significant deposits received in 2011 for sales not yet recognized in revenue, and the decrease in accounts payable resulted from lower production activity at the Company s printed circuit board manufacturer at the end of the third quarter 2011. The increase in accounts receivable resulted from a significant increase in sales in the final month of the third quarter 2011, compared to the final month of 2010.
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Performance Technologies Inc. has a market cap of $20.23 million; its shares were traded at around $1.82 with and P/S ratio of 0.72.
Highlight of Business Operations:
Revenue in the third quarter 2011 amounted to $9.0 million, compared to $6.3 million in the third quarter 2010. Revenue for the nine months ended September 30, 2011 was $27.1 million, compared to $21.1 million in the corresponding period in 2010. The increase in revenue in the third quarter 2011 over the comparable prior year period was primarily due to sales to GENBAND, Globacom (Ghana, Africa), Rockwell-Collins, Nologin Consulting S.L. and Kapsch CarrierCom AG (“Kapsch”), a new PT distributor, offset partially by the non-recurrence of revenue from Starcomm PLC during the third quarter of 2010. The increase in revenue in the nine months ended September 30, 2011 over the prior year period was primarily due to a substantial first quarter 2011 sale to the FAA, sales to GENBAND, Kapsch, Globacom and Rockwell-Collins. Shipments to customers outside of the United States represented 53% and 67% in the third quarter of 2011 and 2010, respectively, and 48% and 61% in the nine months ended September 30, 2011 and 2010, respectively.Sales. Total revenue for the third quarter 2011 amounted to $9.0 million, compared to $6.3 million for the corresponding quarter in 2010. The sales increase in the third quarter is primarily attributable to sales through the Company s new alliance with GENBAND, sales through two European distributors, Kapsch CarrierCom AG and Nologin Consulting S.L., revenue from Globacom (Ghana, Africa), and sales to Rockwell-Collins, offset by the non-recurrence of the shipment to Starcomm PLC in the third quarter of 2010. During the third quarter 2011 and 2010, one customer, Metaswitch Networks, accounted for 14% and 22% of sales, respectively. In the third quarter 2011, two additional customers accounted for 14% and 10% of sales, respectively, while PT s four largest customers represented 47% of sales, compared to 40% of sales in the third quarter 2010. The Company s four largest customers comprised 43% and 41% of sales in the nine months ended September 30, 2011 and 2010, respectively.
Shipments to customers outside of the United States represented 53% and 67% of PT s sales during the third quarter of 2011 and 2010, respectively. Shipments to customers outside of the United States represented 48% and 61% of the Company s sales for the nine months ended September 30, 2011 and 2010, respectively. Total shipments to customers in the United Kingdom represented 15% of sales in the third quarter 2011, compared to 22% of sales in the third quarter 2010. One U.K. customer, Metaswitch Networks, represented 14% and 22% of sales in the third quarter 2011 and 2010, respectively. Total shipments to customers in the United Kingdom represented 23% and 28% of sales in the nine months ended September 30, 2011 and 2010, respectively.
Research and development expenses were $1.6 million and $1.8 million in the third quarter 2011 and 2010, respectively. The Company capitalizes certain software development costs, which reduces the amount of software development charged to operating expenses. Amounts capitalized were $.5 million and $.6 million during the third quarter 2011 and 2010, respectively. Research and development expenses were $5.3 million and $5.7 million for the nine months ended September 30, 2011 and 2010, respectively. Amounts capitalized to software development costs amounted to $1.7 million and $1.9 million in the nine months ended September 30, 2011 and 2010, respectively. The decreases in research and development expenses in 2011 over the comparable 2010 periods are primarily the result of a net decrease in the number of engineers in research and development due to the Company s restructuring actions, partially offset by the addition of software engineers to support the Company s new sales alliance with GENBAND.
For the nine months ended September 30, 2011, cash used by operating activities amounted to $.5 million. This amount reflects the net loss of ($1.6 million) offset by non-cash items including depreciation and amortization charges of $2.8 million, the impairment charge – vendor software of $.4 million and stock-based compensation expense of $.2 million. Cash used in operations due to changes in operating assets and liabilities included a decrease in cash associated with a $2.5 million increase in accounts receivable and a $2.6 million decrease in accounts payable and accrued expenses, partially offset by a $1.8 million decrease in inventories and a $1.4 million increase in deferred revenues. The decrease in inventories was a result of PT s decision to hold the level of inventory purchasing below the level of inventory usage in second and third quarters. The increase in deferred revenue resulted from significant deposits received in 2011 for sales not yet recognized in revenue, and the decrease in accounts payable resulted from lower production activity at the Company s printed circuit board manufacturer at the end of the third quarter 2011. The increase in accounts receivable resulted from a significant increase in sales in the final month of the third quarter 2011, compared to the final month of 2010.
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