Globecomm Systems Inc. (GCOM, Financial) filed Quarterly Report for the period ended 2009-12-31.
Globecomm Systems Inc. has a market cap of $138.2 million; its shares were traded at around $6.62 with a P/E ratio of 34.8 and P/S ratio of 0.8. GCOM is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Research and Development. Research and development expenses increased by $0.3 million, or 49.7%, to $0.8 million for the three months ended December 31, 2009 and increased by $0.7 million, or 84.5%, to $1.5 million for the six months ended December 31, 2009 compared to $0.5 million and $0.8 million for the three and six months ended December 31, 2008, respectively. The increase was principally due to costs associated with expanding X and Ka band product capabilities, along with research and development costs at Telaurus of $0.2 million and $0.4 million for the three and six months ended December 31, 2009, respectively.
General and Administrative. General and administrative expenses increased by $1.5 million, or 40.9%, to $5.2 million for the three months ended December 31, 2009 and increased by $3.4 million, or 45.7%, to $10.7 million for the six months ended December 31, 2009 compared to $3.7 million and $7.4 million for the three and six months ended December 31, 2008, respectively. The increase for the three months ended December 31, 2009 was a result of $1.2 million of general and administrative expenses incurred at Mach 6 and Telaurus (inclusive of $0.2 million of amortization of intangibles related to these acquisitions), and an increase in stock based compensation. The increase for the six months ended December 31, 2009 was a result of $2.5 million of general and administrative expenses incurred at Mach 6 and Telaurus (inclusive of $0.5 million of amortization of intangibles related to these acquisitions), an increase in the accrual for the Companys pay for performance plan based on current results of operations, and an increase in bad debt expense.
At December 31, 2009, we had working capital of $76.1 million, including cash and cash equivalents of $49.7 million, net accounts receivable of $38.8 million, inventories of $25.0 million, prepaid expenses and other current assets of $2.1 million and current deferred income taxes of $1.1 million, offset by $24.4 million in accounts payable, $7.0 million in deferred revenues, $3.9 million in accrued payroll and related fringe benefits and $5.3 million in other accrued expenses.
At June 30, 2009, we had working capital of $74.6 million, including cash and cash equivalents of $44.0 million, net accounts receivable of $45.4 million, inventories of $17.0 million, prepaid expenses and other current assets of $2.3 million and deferred income taxes of $1.1 million, offset by $22.5 million in accounts payable, $5.3 million in deferred revenue, $4.3 million in accrued payroll and related fringe benefits and $3.1 million in other accrued expenses.
Net cash provided by operating activities during the six months ended December 31, 2008 was $6.8 million. This primarily related to a decrease in accounts receivable of $14.0 million due to the timing of billings and collections from customers and a reduction in revenue in the three months ended December 31, 2008, a non-cash item representing depreciation and amortization expense of $2.7 million primarily related depreciation expense related to the network operations center and satellite earth station equipment, net income of $1.8 million, non-cash stock compensation expense of $1.2 million and decrease in deferred income taxes of $0.8 million due to net income generated in the period, offset by a decrease in accounts payable of $5.7 million relating to the reduction in revenue and the timing of vendor payments in the three months ended December 31, 2008, an increase in inventories of $3.9 million due to the timing of shipments of certain jobs, a decrease in deferred revenue of $2.7 million due to timing differences between project billings and revenue recognition milestones resulting from specific customer contracts, and a decrease in accrued payroll and related fringe benefits of $1.5 million primarily due to the payment in the three months ended September 30, 2008 of awards under the pay for performance plan with respect to the Companys fiscal year ended June 30, 2008, along with a significant reduction in fiscal 2009 accrual based on operating performance.
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Globecomm Systems Inc. has a market cap of $138.2 million; its shares were traded at around $6.62 with a P/E ratio of 34.8 and P/S ratio of 0.8. GCOM is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Revenues from Services. Revenues increased by $14.9 million, or 80.1%, to $33.6 million for the three months ended December 31, 2009 and increased by $24.7 million, or 66.0%, to $62.2 million for the six months ended December 31, 2009 compared to $18.6 million and $37.5 million for the three and six months ended December 31, 2008, respectively. The increase in revenues for the three and six months ended December 31, 2009 was due to $8.3 million and $16.5 million, respectively, of revenue from Mach 6 and Telaurus along with an increase in our access service offering primarily in the government marketplace.Research and Development. Research and development expenses increased by $0.3 million, or 49.7%, to $0.8 million for the three months ended December 31, 2009 and increased by $0.7 million, or 84.5%, to $1.5 million for the six months ended December 31, 2009 compared to $0.5 million and $0.8 million for the three and six months ended December 31, 2008, respectively. The increase was principally due to costs associated with expanding X and Ka band product capabilities, along with research and development costs at Telaurus of $0.2 million and $0.4 million for the three and six months ended December 31, 2009, respectively.
General and Administrative. General and administrative expenses increased by $1.5 million, or 40.9%, to $5.2 million for the three months ended December 31, 2009 and increased by $3.4 million, or 45.7%, to $10.7 million for the six months ended December 31, 2009 compared to $3.7 million and $7.4 million for the three and six months ended December 31, 2008, respectively. The increase for the three months ended December 31, 2009 was a result of $1.2 million of general and administrative expenses incurred at Mach 6 and Telaurus (inclusive of $0.2 million of amortization of intangibles related to these acquisitions), and an increase in stock based compensation. The increase for the six months ended December 31, 2009 was a result of $2.5 million of general and administrative expenses incurred at Mach 6 and Telaurus (inclusive of $0.5 million of amortization of intangibles related to these acquisitions), an increase in the accrual for the Companys pay for performance plan based on current results of operations, and an increase in bad debt expense.
At December 31, 2009, we had working capital of $76.1 million, including cash and cash equivalents of $49.7 million, net accounts receivable of $38.8 million, inventories of $25.0 million, prepaid expenses and other current assets of $2.1 million and current deferred income taxes of $1.1 million, offset by $24.4 million in accounts payable, $7.0 million in deferred revenues, $3.9 million in accrued payroll and related fringe benefits and $5.3 million in other accrued expenses.
At June 30, 2009, we had working capital of $74.6 million, including cash and cash equivalents of $44.0 million, net accounts receivable of $45.4 million, inventories of $17.0 million, prepaid expenses and other current assets of $2.3 million and deferred income taxes of $1.1 million, offset by $22.5 million in accounts payable, $5.3 million in deferred revenue, $4.3 million in accrued payroll and related fringe benefits and $3.1 million in other accrued expenses.
Net cash provided by operating activities during the six months ended December 31, 2008 was $6.8 million. This primarily related to a decrease in accounts receivable of $14.0 million due to the timing of billings and collections from customers and a reduction in revenue in the three months ended December 31, 2008, a non-cash item representing depreciation and amortization expense of $2.7 million primarily related depreciation expense related to the network operations center and satellite earth station equipment, net income of $1.8 million, non-cash stock compensation expense of $1.2 million and decrease in deferred income taxes of $0.8 million due to net income generated in the period, offset by a decrease in accounts payable of $5.7 million relating to the reduction in revenue and the timing of vendor payments in the three months ended December 31, 2008, an increase in inventories of $3.9 million due to the timing of shipments of certain jobs, a decrease in deferred revenue of $2.7 million due to timing differences between project billings and revenue recognition milestones resulting from specific customer contracts, and a decrease in accrued payroll and related fringe benefits of $1.5 million primarily due to the payment in the three months ended September 30, 2008 of awards under the pay for performance plan with respect to the Companys fiscal year ended June 30, 2008, along with a significant reduction in fiscal 2009 accrual based on operating performance.
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