Communications Systems Inc (JCS, Financial) filed Quarterly Report for the period ended 2012-06-30.
Communications Systems, Inc. has a market cap of $95.2 million; its shares were traded at around $11.18 with a P/E ratio of 11.1 and P/S ratio of 0.7. The dividend yield of Communications Systems, Inc. stocks is 5.7%. Communications Systems, Inc. had an annual average earning growth of 11.9% over the past 10 years. GuruFocus rated Communications Systems, Inc. the business predictability rank of 3-star.
Suttles gross margin increased 22% in the second quarter of 2012 to $2,497,000 compared to $2,040,000 in the same period of 2011. Gross margin as a percentage of sales increased to 24% in 2012 from 23% in 2011 due to product mix changes. Selling, general and administrative expenses increased $282,000 or 15% in the second quarter of 2012 compared to the same period in 2011, due to increased spending in the Companys technology development and market expansion initiatives. Suttles operating income was $292,000 in the second quarter of 2012 compared to an operating loss of $1,155,000 in 2011 due to a goodwill impairment charge of $1,272,000 in the second quarter of 2011.
Gross margin on second quarter Transition Networks sales decreased 46% to $7,801,000 in 2012 from $14,538,000 in 2011. Gross margin as a percentage of sales increased to 56% in 2012 as compared to 45% in 2011 due to volume discounts given in 2011 for the large network upgrade project with a Fortune 500 company described above. Selling, general and administrative expenses decreased 6% to $5,570,000 in 2012 compared to $5,897,000 in 2011 due to cost reduction measures during the quarter. Operating income decreased to $2,232,000 in 2012 compared to $8,641,000 in 2011.
Suttles gross margin increased 13% in the first six months of 2012 to $5,398,000 compared to $4,765,000 in the same period of 2011. Gross margin as a percentage of sales increased to 26% in 2012 from 24% in 2011 due to product mix changes. Selling, general and administrative expenses increased $531,000 or 13% in the first six months of 2012 compared to the same period in 2011, due to an increase in spending in the technology development and market expansion initiative. Suttles operating income was $825,000 in the first six months of 2012 compared to an operating loss of $550,000 in 2011 due to a goodwill impairment charge of $1,272,000 in the second quarter of 2011.
JDL gross margin decreased 83% to $595,000 in the first six months of 2012 compared to $3,505,000 in the same period in 2011. Gross margin as a percentage of sales decreased to 31% in 2012 from 45% in 2011 due to purchasing discounts and rebates the Company was able to take advantage of during the first half of the prior year. Selling, general and administrative expenses increased 11% in 2012 to $1,114,000 compared to $1,001,000 in 2011 due to increased sales and marketing expenses as JDL has expanded its market focus. JDL reported an operating loss of $519,000 in the first six months of 2012 compared to operating income of $2,504,000 in the same period of 2011.
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Communications Systems, Inc. has a market cap of $95.2 million; its shares were traded at around $11.18 with a P/E ratio of 11.1 and P/S ratio of 0.7. The dividend yield of Communications Systems, Inc. stocks is 5.7%. Communications Systems, Inc. had an annual average earning growth of 11.9% over the past 10 years. GuruFocus rated Communications Systems, Inc. the business predictability rank of 3-star.
Highlight of Business Operations:
For the three months ended June 30, 2012, the Company had revenues of $25.6 million and net income of $972,000 or $0.11 per diluted share compared to 2011 second quarter revenues of $45.4 million and net income of $4.1 million or $0.48 per diluted share. For the six months ended June 30, 2012, the Company had revenues of $49.8 million and net income of $1,027,000 or $0.12 per diluted share compared to 2011 six-month revenues of $76.5 million and net income of $6.6 million or $0.78 per diluted share.Suttles gross margin increased 22% in the second quarter of 2012 to $2,497,000 compared to $2,040,000 in the same period of 2011. Gross margin as a percentage of sales increased to 24% in 2012 from 23% in 2011 due to product mix changes. Selling, general and administrative expenses increased $282,000 or 15% in the second quarter of 2012 compared to the same period in 2011, due to increased spending in the Companys technology development and market expansion initiatives. Suttles operating income was $292,000 in the second quarter of 2012 compared to an operating loss of $1,155,000 in 2011 due to a goodwill impairment charge of $1,272,000 in the second quarter of 2011.
Gross margin on second quarter Transition Networks sales decreased 46% to $7,801,000 in 2012 from $14,538,000 in 2011. Gross margin as a percentage of sales increased to 56% in 2012 as compared to 45% in 2011 due to volume discounts given in 2011 for the large network upgrade project with a Fortune 500 company described above. Selling, general and administrative expenses decreased 6% to $5,570,000 in 2012 compared to $5,897,000 in 2011 due to cost reduction measures during the quarter. Operating income decreased to $2,232,000 in 2012 compared to $8,641,000 in 2011.
Suttles gross margin increased 13% in the first six months of 2012 to $5,398,000 compared to $4,765,000 in the same period of 2011. Gross margin as a percentage of sales increased to 26% in 2012 from 24% in 2011 due to product mix changes. Selling, general and administrative expenses increased $531,000 or 13% in the first six months of 2012 compared to the same period in 2011, due to an increase in spending in the technology development and market expansion initiative. Suttles operating income was $825,000 in the first six months of 2012 compared to an operating loss of $550,000 in 2011 due to a goodwill impairment charge of $1,272,000 in the second quarter of 2011.
JDL gross margin decreased 83% to $595,000 in the first six months of 2012 compared to $3,505,000 in the same period in 2011. Gross margin as a percentage of sales decreased to 31% in 2012 from 45% in 2011 due to purchasing discounts and rebates the Company was able to take advantage of during the first half of the prior year. Selling, general and administrative expenses increased 11% in 2012 to $1,114,000 compared to $1,001,000 in 2011 due to increased sales and marketing expenses as JDL has expanded its market focus. JDL reported an operating loss of $519,000 in the first six months of 2012 compared to operating income of $2,504,000 in the same period of 2011.
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