Applied Signal Technology, Inc. (NASDAQ:APSG) today announced operating results for the fourth quarter and fiscal year ended October 31, 2010. Revenues for the fourth quarter increased 15% to $62,576,000 compared to the year-ago period’s revenues of $54,231,000. This increase resulted from growth generated in several business areas, including network intelligence, tactical SIGINT and sensor surveillance, offset by slightly lower revenues in broadband communications.
The Company’s operating results for the quarter reflect the inclusion of certain non-recurring acquisition-related expenses, both cash and non-cash. While operating income for the fourth quarter decreased by 9% to $5,395,000; non-GAAP operating income, which excludes these expenses from the current and prior year periods, increased 12% to $7,047,000. This increase was achieved despite growth in legal costs associated with the Company’s protection of its intellectual property.
Similarly, earnings per share in the quarter decreased to $0.23 per share versus $0.27 per share during the year-ago period. However, on a non-GAAP basis, excluding expenses related to acquisitions, earnings per share for the fourth quarter were $0.30.
William Van Vleet, President and Chief Executive Officer of Applied Signal Technology, Inc., commented, “We are excited by continued strong demand and a good funding environment for a wide range of our products and services. In particular, we are capturing significant increases in orders for our tactical SIGINT programs, where we are providing our customers with a range of game-changing new technology and capabilities.”
New orders received during the fourth quarter of fiscal year 2010 were $59,001,000 compared to new orders received during the fourth quarter of fiscal year 2009 of $69,475,000. Fourth quarter orders were driven by increased demand in three divisions, tactical SIGINT, network intelligence and sensor surveillance, offset by a delay in the receipt of a major, anticipated order in the broadband communications division. New orders for fiscal year 2010 were $221,614,000 compared to new orders of $210,285,000 received during fiscal year 2009 and were driven by increased orders in network intelligence and tactical SIGINT. Specifically, orders in tactical SIGINT increased by 83% to $41.7 million during fiscal year 2010 when compared to fiscal year 2009.