Globecomm Systems Inc. (GCOM) F4Q2010 Earnings Call Transcript September 14, 2010 10:00 am ET Executives Matthew Byron – SVP, Corporate Office David Hershberg – CEO and Chairman Keith Hall – President and COO Andrew Melfi – SVP and CFO Analysts Jim McIlree – Merriman Rich Valera – Needham & Company Mark Jordan – Noble Financial Dick Ryan – Dougherty David Cohen – Athena Capital Management Presentation Operator
All forward-looking statements are based on the information available to the company on the date hereof and the company assumes no obligation to update such statements. Please refer to the documents the company files from time to time with the SEC, specifically the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and its current reports on Form 8-K, and the Safe Harbor language contained in the company’s press releases.These documents contain and identify important factors that could cause the company’s actual results to differ materially from those contained in these projections or forward-looking statements, which the company urges all investors to consider. Globecomm undertakes no obligation to publicly release the revisions for such forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Please note that this call is being recorded on Tuesday, September 14, 2010, contains time-sensitive information, and will be available as a webcast replay for at least nine months on the Investor Relations section of the Globecomm Systems website and as a phone replay at 1-888-203-1112 for domestic callers, or 719-457-0820 for international callers with an access code of 8435331. At this point, I would like to turn the call over to our Chairman and CEO, Dave Hershberg. Dave? David Hershberg Okay. Thank you, Matt, and good morning everyone and welcome to our fiscal 2010 earnings conference call. We are very happy to report a very good year for Globecomm. Last night, Globecomm its fiscal 2010 and fourth quarter financial earnings press release, which included record fiscal 2011 financial guidance. Andy Melfi will provide greater visibility into the 2010 and 2011 numbers in a few minutes. But because these numbers are so good, I thought I would bore you with some of them.
Record fiscal year 2010 consolidated revenues of $227.8 million as compared to $170 million last year. That's a 34% increase for the year and a 43% for Q4, with record guidance between $290 million and $305 million for fiscal 2011 or roughly a 30% increase. Record fiscal year 2010 service revenues of $135.8 million as compared to $81.3 million last year, or a 53% increase and for Q4, a 60.4% increase.Fiscal year 2010 infrastructure solutions revenues of $92 million as compared to $88.8 million last year, or about a 4% increase for the year and about 24% for Q4. Fiscal year 2010 GAAP diluted net income per common share of $0.38 as compared to GAAP diluted net income per common share of $0.16 last year, or a 137% increase. Record fiscal year 2010 adjusted EBITDA of $20.9 million as compared to $12.2 million last year, or a 71% increase. Fiscal 2010 record revenues of $228 million with record guidance between $290 million, $305 million for fiscal 2011. We hit the high end of our earnings per share of $0.34 – $0.38 with our R&D tax credit. In fiscal 2010, we improved guidance between $0.50 and $0.55 or roughly a 55% increase. We finished fiscal 2009 [ph] with roughly $48 million in cash and expect a very strong cash flow growth in fiscal 2011 as some of our major infrastructure receivables get collected on, coupled with anticipated record adjusted EBITDA. I am extremely pleased with the company's execution and we are very excited about a record year in fiscal 2011, which is being driven by anticipated record service revenue of approximately $175 million. We were able to hit the record numbers despite a poor economic backdrop and in fact, increased the employee base by over 20%; we are now greater than 400.
We made major investments in R&D across our pre-engineered, wireless, maritime, and enterprise product lines. We are starting to see some light at the end of the tunnel for our infrastructure business operating in a very tough environment with some recently announced contracts in media, tactical terminal add-ons with NATO and our JIPM contract. Also some new Ka-Band gateway terminals and we are having a good reception for our new lightweight TomCat terminal.Read the rest of this transcript for free on seekingalpha.com