GSE Systems, Inc. (“GSE” or “the Company”) (NYSE Amex: GVP), a global energy services solutions provider, today announced financial results for the second quarter ended June 30, 2011.
Jim Eberle, Chief Executive Officer of GSE, commented, “Although revenues declined quarter-over-quarter primarily due to unanticipated delays associated with achieving final agreement on certain overseas projects, gross margin improved by approximately 2.4% from the same period last year, reflecting higher margin revenues generated at GSE EnVision and a lower revenue contribution from the Slovakia contract. We continued to service our backlog, including projects at two nuclear plants in Japan with backlog of approximately $6.6 million at June 30, 2011. Our financial position at June 30, 2011 included cash and cash equivalents of $18.6 million, working capital of $28.6 million, and no long-term debt. While the base business remains steady through this challenging environment, we have been active in new business development and are committed to growing our business both organically and through acquisitions. We have closed our first commercial contract associated with our new 3D Visualization capabilities and believe these capabilities can be leveraged throughout all of our businesses. Additionally, we have launched MAAP-HD, an offering to meet the training and simulation needs associated with severe accidents such as those experienced at the Fukishima nuclear power plants. Based on accomplishments to date and our strategy to continue to develop services to support the energy industry, I am confident we are positioning ourselves for success for years to come.”
Q2 2011 Results
Q2 2011 revenue was $11.3 million compared to $11.8 million in Q2 2010. In Q2 2011, revenue associated with the previously announced Slovakia full-scope simulator project declined to $1.1 million (10.1% of revenue) from $2.4 million (20.1% of revenue) in Q2 2010. This decline was partially offset by $0.6 million revenue generated by GSE EnVision Inc. (formerly EnVision Systems, Inc., acquired in January 2011).