GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), a global energy services solutions provider, today announced financial results for the second quarter ended June 30, 2012.
Jim Eberle, Chief Executive Officer of GSE, commented, “Our results for Q2 2012 reflect our continuing success at building revenue, expanding margin, and improving profitability. Gross profit and operating income improved substantially both year-over-year and from Q1 2012. Q2 2012 also marked GSE’s fourth consecutive quarter of profitable operations. Although we are pleased with our results for the first six months of 2012, we remain focused on sourcing and developing new business opportunities, diversifying our revenue, and delivering industry leading, solution-based products and services to address the looming shortage of qualified energy operations personnel.”
Q2 2012 RESULTS
Q2 2012 revenue was $13.2 million, up 17.1% from $11.3 million in Q2 2011. The increase was driven mainly by a $1.2 million increase in nuclear simulation revenue in Q2 2012 as compared to Q2 2011. GSE EnVision product revenue increased by $0.2 million in Q2 2012 from the prior year.Gross profit in Q2 2012 rose to $4.5 million, or 33.9% of revenue, from $3.8 million, or 33.4% of revenue, in Q2 2011. Revenue related to the full scope simulator and digital control system order from a Slovak utility, which has an overall lower gross profit percentage than GSE’s normal gross profit percentage, declined to $0.5 million, or 4.1% of total revenue in Q2 2012, from $1.1 million, or 10.1% of revenue, in Q2 2011. Also contributing to improved Q2 2012 gross profit was the increase in higher margin GSE EnVision product revenue, referenced above. As announced in May 2012, under a multi-year agreement, GSE EnVision is providing simulation and computer-based learning modules to assist a subsidiary of a global energy services company in core fundamental operations training for control room operators, instrumentation and maintenance technicians, and process engineers in multiple refinery and ethylene plants, as well as engineering centers. The Company expects to record significant revenue from the remaining balance of this contract in Q3 of this year.