Sutron Corp. (STRN, Financial) filed Quarterly Report for the period ended 2009-03-31.
Sutron Corporation designs manufactures installs and supports system solutions for the following applications: weather flood coastline and tides water level/quality dams and hydropower irrigation rainfall and aviation weather. Sutron is a major supplier of hydro-met and oceanic systems equipment and software to collect store and transmit data from extreme locales to desktop laptop and pocket PCs worldwide by satellite internet radio and/or telephone. Sutron Corp. has a market cap of $22.6 million; its shares were traded at around $4.92 with a P/E ratio of 44.7 and P/S ratio of 1.4. Sutron Corp. had an annual average earning growth of 102.1% over the past 5 years.
Overall domestic revenues increased 1% to $2,149,397 in the first quarter of 2009 versus $2,118,683 in 2008 while international revenues decreased 16% to $1,425,634 in the first quarter of 2009 versus $1,700,365 in the same period in 2008. Customer orders or bookings in the first quarter of 2009 were $2,732,622 as compared to $2,507,580 in the first quarter of 2008.
Selling, general and administrative expenses increased to $1,010,035 for the first quarter of 2009 from $881,301 for the same period in 2008. Selling, general and administrative expenses as a percentage of revenues increased to 28.3% for the first quarter of 2009 from 23.1% for the same period in 2008 due to the revenue decrease. The increase was primarily due to higher agent commissions in the amount of approximately $77,000 relating to several international projects and higher stock option expenses in the amount of approximately $37,000.
Due to our cash position, we did not use our line of credit during the first quarter of 2009. We had interest income for the quarter ended March 31, 2009 of $19,318 as compared to interest income of $40,321 for the quarter ended March 31, 2008. In 2007, we brought a lawsuit against our former Hydrological Services Vice President. We settled the lawsuit in January 2009 in the amount of $150,000. The settlement provided for the immediate payment of $60,000. The remaining balance of $90,000 was secured by a promissory note that requires monthly payments over a five year period including interest at 4%.
Cash and cash equivalents were $3,703,079 at March 31, 2009 compared to $3,705,475 at December 31, 2008. Working capital increased slightly to $11,752,269 at March 31, 2009 compared with $11,745,166 at December 31, 2008.
Net cash used by investing activities was $256,291 for the quarter ended March 31, 2009 as compared to net cash used by investing activities of $33,132 for the quarter ended March 31, 2008. An increase of $145,128 in restricted cash in the first quarter of 2009 was related to a bid bond issued to the India Meteorological Department. The increase in purchases of property and equipment is due to leasehold improvements relating to our new corporate headquarters that is expected to be completed in May 2009.
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Sutron Corporation designs manufactures installs and supports system solutions for the following applications: weather flood coastline and tides water level/quality dams and hydropower irrigation rainfall and aviation weather. Sutron is a major supplier of hydro-met and oceanic systems equipment and software to collect store and transmit data from extreme locales to desktop laptop and pocket PCs worldwide by satellite internet radio and/or telephone. Sutron Corp. has a market cap of $22.6 million; its shares were traded at around $4.92 with a P/E ratio of 44.7 and P/S ratio of 1.4. Sutron Corp. had an annual average earning growth of 102.1% over the past 5 years.
Highlight of Business Operations:
Revenues for the first quarter ended March 31, 2009 decreased 6% to $3,575,031 from $3,819,048 in 2008. Net sales and revenues are broken down between sales of standard products and sales of systems, software and services. Standard products had a net sales and revenue decrease of .6% to $2,118,575 from $2,130,821 in 2008. Net sales and revenues for systems, software and services decreased 15% to $1,458,699 from $1,711,641 in 2008 primarily due to decreased contract revenue from the Company s project with the Afghanistan Ministry of Energy and Water (MEW) to provide 174 hydrological monitoring stations. MEW contract revenue decreased to approximately $159,000 in the first quarter of 2009 as compared to approximately $513,000 in the first quarter of 2008. Intercompany sales reduced net sales and revenues in the amount of $2,242 during the first quarter of 2009 as compared to a reduction of $23,414 in the first quarter of 2008.Overall domestic revenues increased 1% to $2,149,397 in the first quarter of 2009 versus $2,118,683 in 2008 while international revenues decreased 16% to $1,425,634 in the first quarter of 2009 versus $1,700,365 in the same period in 2008. Customer orders or bookings in the first quarter of 2009 were $2,732,622 as compared to $2,507,580 in the first quarter of 2008.
Selling, general and administrative expenses increased to $1,010,035 for the first quarter of 2009 from $881,301 for the same period in 2008. Selling, general and administrative expenses as a percentage of revenues increased to 28.3% for the first quarter of 2009 from 23.1% for the same period in 2008 due to the revenue decrease. The increase was primarily due to higher agent commissions in the amount of approximately $77,000 relating to several international projects and higher stock option expenses in the amount of approximately $37,000.
Due to our cash position, we did not use our line of credit during the first quarter of 2009. We had interest income for the quarter ended March 31, 2009 of $19,318 as compared to interest income of $40,321 for the quarter ended March 31, 2008. In 2007, we brought a lawsuit against our former Hydrological Services Vice President. We settled the lawsuit in January 2009 in the amount of $150,000. The settlement provided for the immediate payment of $60,000. The remaining balance of $90,000 was secured by a promissory note that requires monthly payments over a five year period including interest at 4%.
Cash and cash equivalents were $3,703,079 at March 31, 2009 compared to $3,705,475 at December 31, 2008. Working capital increased slightly to $11,752,269 at March 31, 2009 compared with $11,745,166 at December 31, 2008.
Net cash used by investing activities was $256,291 for the quarter ended March 31, 2009 as compared to net cash used by investing activities of $33,132 for the quarter ended March 31, 2008. An increase of $145,128 in restricted cash in the first quarter of 2009 was related to a bid bond issued to the India Meteorological Department. The increase in purchases of property and equipment is due to leasehold improvements relating to our new corporate headquarters that is expected to be completed in May 2009.
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