Sutron Corp. (STRN, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $32.7 million; its shares were traded at around $7.15 with a P/E ratio of 71.5 and P/S ratio of 2.1. Sutron Corp. had an annual average earning growth of 102.1% over the past 5 years.
Revenues for the nine months ended September 30, 2009 increased 5% to $12,898,779 from $12,239,838 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 increase of 7% to $7,106,550 from $6,669,083 in 2008. Net sales and revenues for systems, software and services increased 4% to $5,792,229 from $5,570,755 in 2008. Overall domestic revenues decreased 5% to $7,147,663 for the nine months ended September 30, 2009 versus $7,557,168 in 2008 while international revenues increased 23% to $5,751,116 for the nine months ended September 30, 2009 versus $4,682,670 in 2008. The international increase was primarily due to increased contract revenue from the Company s project with the Tamil Nadu Agricultural University (TNAU) located in Coimbatore, India to provide 224 meteorological monitoring stations.
Customer orders or bookings for the nine months ended September 30, 2009 were approximately $22,863,000 as compared to approximately $10,401,000 in 2008, an increase of 120%. The increase was primarily due to receipt of the TNAU contract which was approximately $2,979,000, two orders received from the U.S. Geological Survey which totaled approximately $3,972,000 and a contract award from UTE Dominion/ADASA for approximately $4,200,000 for a hydro-meteorological monitoring system in Venezuela.
Selling, general and administrative expenses were $2,877,887 in 2009 as compared to $2,497,538 in 2008, an increase of $380,349 or 15%. Selling, general and administrative expenses as a percentage of revenues increased to 22.3% for the nine months ended September 30, 2009 from 20.4% in 2008. The increase can be attributed to higher sales and marketing costs due to the addition of our Ilex Division as well as increases in Integrated Systems selling costs. Agent commissions on several international projects for the nine months ended September 30, 2009 increased approximately $91,000 over 2008. GSA funding fees increased approximately $28,000 over 2008 fees due to large orders received from the U.S. Geological Survey during the first nine months of 2009. One-time costs associated with moving into our new facility totaled approximately $67,000 and one-time costs of stock option compensation relating to the Ilex acquisition totaled approximately $53,000 during the first nine months of 2009.
Net interest and other income increased to $215,752 for the nine months ended September 30, 2009 as compared to $88,653 in 2008. In 2007, we brought a lawsuit against a former employee. 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%. The Company had net interest income in 2009 of $61,337 as compared to net interest income of $88,653 in 2008.
Cash and cash equivalents were $3,654,855 at September 30, 2009 compared to $3,705,475 at December 31, 2008. Working capital increased to $12,499,619 at September 30, 2009 compared with $11,745,166 at December 31, 2008.
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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 $32.7 million; its shares were traded at around $7.15 with a P/E ratio of 71.5 and P/S ratio of 2.1. Sutron Corp. had an annual average earning growth of 102.1% over the past 5 years.
Highlight of Business Operations:
Revenues for the third quarter ended September 30, 2009 increased 3% to $4,536,850 from $4,395,775 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 increase of 14% to $2,592,346 from $2,278,103 in 2008. Net sales and revenues for systems, software and services decreased 8% to $1,944,504 from $2,117,672 in 2008 primarily due to decreased systems sales. Overall domestic revenues increased 19% to $3,032,894 in the third quarter of 2009 versus $2,546,070 in 2008 while international revenues decreased 19% to $1,503,956 in the third quarter of 2009 versus $1,849,705 in the same period in 2008.Revenues for the nine months ended September 30, 2009 increased 5% to $12,898,779 from $12,239,838 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 increase of 7% to $7,106,550 from $6,669,083 in 2008. Net sales and revenues for systems, software and services increased 4% to $5,792,229 from $5,570,755 in 2008. Overall domestic revenues decreased 5% to $7,147,663 for the nine months ended September 30, 2009 versus $7,557,168 in 2008 while international revenues increased 23% to $5,751,116 for the nine months ended September 30, 2009 versus $4,682,670 in 2008. The international increase was primarily due to increased contract revenue from the Company s project with the Tamil Nadu Agricultural University (TNAU) located in Coimbatore, India to provide 224 meteorological monitoring stations.
Customer orders or bookings for the nine months ended September 30, 2009 were approximately $22,863,000 as compared to approximately $10,401,000 in 2008, an increase of 120%. The increase was primarily due to receipt of the TNAU contract which was approximately $2,979,000, two orders received from the U.S. Geological Survey which totaled approximately $3,972,000 and a contract award from UTE Dominion/ADASA for approximately $4,200,000 for a hydro-meteorological monitoring system in Venezuela.
Selling, general and administrative expenses were $2,877,887 in 2009 as compared to $2,497,538 in 2008, an increase of $380,349 or 15%. Selling, general and administrative expenses as a percentage of revenues increased to 22.3% for the nine months ended September 30, 2009 from 20.4% in 2008. The increase can be attributed to higher sales and marketing costs due to the addition of our Ilex Division as well as increases in Integrated Systems selling costs. Agent commissions on several international projects for the nine months ended September 30, 2009 increased approximately $91,000 over 2008. GSA funding fees increased approximately $28,000 over 2008 fees due to large orders received from the U.S. Geological Survey during the first nine months of 2009. One-time costs associated with moving into our new facility totaled approximately $67,000 and one-time costs of stock option compensation relating to the Ilex acquisition totaled approximately $53,000 during the first nine months of 2009.
Net interest and other income increased to $215,752 for the nine months ended September 30, 2009 as compared to $88,653 in 2008. In 2007, we brought a lawsuit against a former employee. 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%. The Company had net interest income in 2009 of $61,337 as compared to net interest income of $88,653 in 2008.
Cash and cash equivalents were $3,654,855 at September 30, 2009 compared to $3,705,475 at December 31, 2008. Working capital increased to $12,499,619 at September 30, 2009 compared with $11,745,166 at December 31, 2008.
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