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TeleCommunication Systems Inc. Reports Operating Results (10-Q)

May 05, 2010 | About:
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10qk

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TeleCommunication Systems Inc. (TSYS) filed Quarterly Report for the period ended 2010-03-31.

Telecommunication Systems Inc. has a market cap of $338.9 million; its shares were traded at around $6.43 with a P/E ratio of 12.6 and P/S ratio of 1.2. TSYS is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Commercial services revenue in the first quarter of 2010 was up $21.5 million or more than double than the first quarter of 2009 from increased maintenance and E9-1-1 services revenue as well as an increase in subscriber applications revenue of approximately $17 million, due mainly to contributions from the NIM and LocationLogic businesses acquired subsequent to the first quarter of 2009.

Commercial services gross profit was $20 million and $9.6 million for the three-months ended March 31, 2010 and 2009, respectively, based on higher revenue. Commercial services gross profit was approximately 51% and 54% of revenue March 31, 2010 and 2009, respectively, mainly due to additional labor and fringe costs associated with costs associated with the NIM and LocationLogic businesses acquired subsequent to the first quarter of 2009.

Our commercial systems gross profit was $5.2 million in the three-months ended March 31, 2010 versus $5.9 million in the comparable period of 2009. Commercial systems gross profit was approximately 60% and 76% of revenue March 31, 2010 and 2009, respectively, down due to less license revenue partially offset by higher location systems revenue in the 2010 first quarters revenue mix.

Our gross profit from government services increased to $5.5 million in the first quarter of 2010 from $2.6 million in the first quarter of 2009, as a result of a higher volume of services, including business arising from the acquisitions of Sidereal and Solvern in November 2009. Government services gross profit was 27% and 20% of revenue March 31, 2010 and 2009, respectively, reflecting a more favorable mix of contracts.

Government systems sales were $22.4 million in the first quarter of 2010, down from $32.1 million for the three-months ended March 31, 2009. This decrease represents lower unit sales volume of our SwiftLink® and deployable communication systems due to the timing of government project funding.

Our government systems gross profit was $2.8 million in the first quarter of 2010, down from $7.1 million in the comparable period of 2009, due mainly to decreased sales volume. Government systems gross profit was 13% and 22% of revenue March 31, 2010 and 2009, respectively, reflecting a mix that included more lower margin pass-through sales in the first quarter of 2010.

Read the The complete Report

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