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GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), a global energy services solutions provider, today announced financial results for the third quarter ended September 30, 2012.
Jim Eberle, Chief Executive Officer of GSE, commented, “The third quarter of 2012 was our fifth consecutive quarter of profitable operations, with improvements in revenues, operating and pre-tax income, and gross profit. We increased our cash position by $9.0 million from June 30, 2012, the result of the previously announced $3.7 million payment from our customer, Slovenské elektrárne, a.s. (“SE”), as well as strong cash collections overall for the quarter. Our outstanding trade receivable balance decreased from $14.7 million at June 30, 2012 to $7.7 million at September 30, 2012. We entered the fourth quarter of 2012 with no long-term debt.
“We have a number of branding, IT, and marketing initiatives underway to assist us in pursuing and capturing new business. Despite challenging domestic and international markets, we were awarded contracts totaling $8.5 million during the third quarter of 2012. These awards were comprised of $5.2 million in nuclear projects, $1.1 million in training and $2.2 million in other non-nuclear projects. We are also continuing to diversify our business model and revenue streams. For the first nine months of 2012, 41% of GSE’s total revenue was comprised of non-nuclear projects, up from 37% in the same period in 2011.”
Mr. Eberle concluded, “We ended the third quarter of 2012 in a very strong financial position with a significant cash balance and no long-term debt. As we look ahead to 2013, we expect to use our balance sheet and network of industry relationships to pursue organic and acquisition-based growth opportunities in areas that are both supportive of and complementary to our position as a global energy services solutions provider.”
Q3 2012 RESULTS
Q3 2012 revenue was $13.0 million, up 3.7% from $12.5 million in Q3 2011. The increase was driven mainly by a $1.8 million increase in GSE EnVision product revenue in Q3 2012 as compared to Q3 2011. During the second quarter of 2012, the Company received a multi-year contract to provide simulation and computer-based learning modules to the subsidiary of a global energy services company. Revenue recognized in 3Q 2012 related to this contract totaled $2.0 million (15.6% of revenue). This increase was partially offset by a decline in revenue related to the $26.9 million full scope simulator and digital control system order from SE which was $0.3 million (2.3% of revenue) in 3Q 2012 as compared to $1.6 million (12.5% of revenue) in 3Q 2011.