Revenues for the first quarter of fiscal 2011 increased $1,052,000 or 54.9% to $2,970,000 from $1,918,000 for the same period in fiscal 2010. The increase in revenues was due to an increase in shippable bookings for the quarter. First quarter revenues included our iPump 562 Media Server for an international satellite digital signage project, iPump 6400 Media Servers for an international health and education network and continued shipments of Encompass LE Audio Receivers for business music applications.The operating results for the first quarter of fiscal 2011 were a net loss of $26,000 or less than $0.01 per share. That compares to a net loss of $990,000 or $0.08 per share for the same period in fiscal 2010. During the first quarter of fiscal 2011, bookings were approximately $3.2 million compared to $1.8 million during the first quarter of fiscal 2010. During fiscal 2010 and fiscal 2009, bookings were $8.3 million and $5.5 million, respectively. These bookings, as well as our fiscal 2008 bookings, were well below our expectations, primarily as a result of customer delays in purchasing decisions, deferral of project expenditures and general adverse economic and credit conditions. Our backlog scheduled to ship within 18 months was approximately $6.3 million at the end of the first quarter, compared to $6.0 million at the end of fiscal year 2010 and $4.2 million at the end of the first quarter of fiscal 2010. Two customers accounted for approximately 40.8% and 32.4%, respectively, of the backlog at December 3, 2010. Approximately $3.3 million of the December 3, 2010, backlog is scheduled to ship during the remainder of fiscal 2011. Gross profit margin percentages were 38.9% for the first quarter of fiscal 2011 compared to 22.1% in the same period of fiscal 2010. Gross profit margin dollars increased $731,000 for the first quarter of fiscal 2011 compared to the same period of fiscal 2010. The increases in margin percentage and dollars were due to the increase in revenues, which resulted in lower unit fixed overhead costs.
Selling, general and administrative or SG&A expenses decreased to $160,000 or 16.7% to $801,000 in the first quarter of fiscal 2011 from $962,000 in the same period of fiscal 2010. Service expenses in the first quarter of fiscal 2011 decreased $147,000 to $24,000 from $171,000 in the same period of fiscal 2010. Additional decreases in SG&A expenses included professional fees of $59,000 and general overhead costs of $36,000. These expense reductions are offset by increase in the allowance for bad debt expense of $40,000 and in-house commission expense of $16,000. As a percentage of revenues, SG&A expenses were 27.0% for the first quarter of fiscal 2011 compared to 50.1% for the same period of fiscal 2010.Research and development expenses were $292,000 or 9.8% of revenues in the first quarter of fiscal 2011 compared to $374,000 or 19.5% of revenues in the same period of fiscal 2010. The decrease in expenses was mainly due to lower salaries as a result of reduced headcount. Read the rest of this transcript for free on seekingalpha.com