Tollgrade Reports Third Consecutive Quarterly Profit
PITTSBURGH, Feb. 23, 2011 (GLOBE NEWSWIRE) -- Tollgrade Communications, Inc. (Nasdaq:TLGD), a leading supplier of network service assurance test products and solutions, today reported revenue of $11.9 million and net income of $2.4 million or $0.17 per share on a fully diluted basis for the fourth quarter ended December 31, 2010. The Company's net income of $2.4 million for the fourth quarter 2010 was almost equal to its third quarter 2010 net income of $2.5 million, which was the highest quarterly net income since the second quarter of 2001. Although fourth quarter 2010 revenue was down by approximately $0.8 million compared to fourth quarter 2009 revenue of $12.7 million, the Company's profit from operations was approximately $1.9 million in the fourth quarter of 2010 compared to an operating loss of $(27.5) million in the fourth quarter of 2009, which included intangible asset impairments of approximately $27.0 million.
For the year ended December 31, 2010, the Company posted revenue of approximately $45.6 million and net income of $4.4 million or $0.34 per share on a fully diluted basis compared to revenue of $44.9 million and a net loss of $(36.2) million or a loss per share on a fully diluted basis of $(2.85) for the prior year. With net income for the year of $4.4 million, 2010 was the Company's first profitable year since 2005. Included in the Company's 2009 net loss, were approximately $30.5 million of non-cash expenses primarily related to intangible asset impairments and inventory write-downs.
"The Company again performed well during the quarter, posting positive net income for the third consecutive quarter and for the full year, representing our first annual profit since 2005. Our number one goal coming into 2010 was to ensure profitability, and we accomplished that goal. We became profitable in part through our cost saving initiatives, which included moving to a totally outsourced variable cost manufacturing model, along with workforce and other non-headcount related cost savings. These cost reductions were strategically made to ensure that our customers would still receive the highest levels of service. Additionally, during the year, we generated approximately $5.5 million in cash from operations," said Edward Kennedy, President and Chief Executive Officer.
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