Sutron Corp. (STRN, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $29.2 million; its shares were traded at around $6.4 with a P/E ratio of 80 and P/S ratio of 1.9. Sutron Corp. had an annual average earning growth of 102.1% over the past 5 years.
Revenues for the six months ended June 30, 2009 increased 7% to $8,361,929 from $7,844,063 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 3% to $4,514,205 from $4,390,980 in 2008. Net sales and revenues for systems, software and services increased 11% to $3,847,724 from $3,453,083 in 2008 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 agricultural/meteorological monitoring stations. Overall domestic revenues decreased 18% to $4,114,769 for the six months ended June 30, 2009 versus $5,011,098 in 2008 while international revenues increased 50% to $4,247,161 for the six months ended June 30, 2009 versus $2,832,965 in 2008.
Customer orders or bookings for the six months ended June 30, 2009 were approximately $13,358,000 as compared to approximately $4,896,000 in 2008, an increase of 173%. The increase was primarily due to receipt of the TNAU contract which was approximately $2,979,000 and due to two orders received from the U.S. Geological Survey which totaled approximately $3,972,000.
Selling, general and administrative expenses were $1,971,907 in 2009 as compared to $1,604,583 in 2008, an increase of $367,324 or 23%. Selling, general and administrative expenses as a percentage of revenues increased to 23.6% for the six months ended June 30, 2009 from 20.5% 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 and Sutron HydroMet Systems (India wholly owned subsidiary) selling costs. Agent commissions on several international projects for the six months ended June 30, 2009 increased approximately $85,000 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 six 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 $36,000 during the first six months of 2009.
Due to the Company\'s cash position, the Company did not use its line of credit during the six months ended June 30, 2009. The Company had net interest income in 2009 of $44,979 as compared to net interest income of $66,429 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%.
Cash and cash equivalents were $3,804,097 at June 30, 2009 compared to $3,705,475 at December 31, 2008. Working capital increased to $11,916,607 at June 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 $29.2 million; its shares were traded at around $6.4 with a P/E ratio of 80 and P/S ratio of 1.9. Sutron Corp. had an annual average earning growth of 102.1% over the past 5 years.
Highlight of Business Operations:
Revenues for the second quarter ended June 30, 2009 increased 19% to $4,786,898 from $4,025,016 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 6% to $2,395,630 from $2,260,159 in 2008. Net sales and revenues for systems, software and services increased 36% to $2,391,268 from $1,764,856 in 2008 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 agricultural/meteorological monitoring stations. Overall domestic revenues decreased 32% to $1,965,371 in the second quarter of 2009 versus $2,892,415 in 2008 while international revenues increased 149% to $2,821,527 in the second quarter of 2009 versus $1,132,601 in the same period in 2008.Revenues for the six months ended June 30, 2009 increased 7% to $8,361,929 from $7,844,063 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 3% to $4,514,205 from $4,390,980 in 2008. Net sales and revenues for systems, software and services increased 11% to $3,847,724 from $3,453,083 in 2008 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 agricultural/meteorological monitoring stations. Overall domestic revenues decreased 18% to $4,114,769 for the six months ended June 30, 2009 versus $5,011,098 in 2008 while international revenues increased 50% to $4,247,161 for the six months ended June 30, 2009 versus $2,832,965 in 2008.
Customer orders or bookings for the six months ended June 30, 2009 were approximately $13,358,000 as compared to approximately $4,896,000 in 2008, an increase of 173%. The increase was primarily due to receipt of the TNAU contract which was approximately $2,979,000 and due to two orders received from the U.S. Geological Survey which totaled approximately $3,972,000.
Selling, general and administrative expenses were $1,971,907 in 2009 as compared to $1,604,583 in 2008, an increase of $367,324 or 23%. Selling, general and administrative expenses as a percentage of revenues increased to 23.6% for the six months ended June 30, 2009 from 20.5% 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 and Sutron HydroMet Systems (India wholly owned subsidiary) selling costs. Agent commissions on several international projects for the six months ended June 30, 2009 increased approximately $85,000 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 six 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 $36,000 during the first six months of 2009.
Due to the Company\'s cash position, the Company did not use its line of credit during the six months ended June 30, 2009. The Company had net interest income in 2009 of $44,979 as compared to net interest income of $66,429 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%.
Cash and cash equivalents were $3,804,097 at June 30, 2009 compared to $3,705,475 at December 31, 2008. Working capital increased to $11,916,607 at June 30, 2009 compared with $11,745,166 at December 31, 2008.
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