Globecomm Systems Reports Fiscal 2012 Third Quarter And Nine Month Financial Results

Globecomm Systems Inc. (NASDAQ:GCOM), a leading global provider of communications solutions and services, today announced financial results for the fiscal 2012 third quarter and nine months ended March 31, 2012. Globecomm is reporting its financial results on a generally accepted accounting principles (GAAP) basis as well as adjusted EBITDA and adjusted diluted net income per common share, both non-GAAP financial measures, for which the Company provides detailed reconciliations on the attached tables. The following are highlights:
  • Service revenue for the quarter increased 43.4% to a record $65.9 million as compared to $46.0 million in the same period last year. For the nine months ended March 31, 2012, service revenue increased 25.5% to a record $170.8 million as compared to $136.2 million in the same period last year.
  • Infrastructure revenue for the quarter increased 172.4% to a record $45.0 million as compared to $16.5 million in the same period last year. For the nine months ended March 31, 2012, infrastructure revenue increased 113.5% to a record $106.3 million as compared to $49.8 million in the same period last year.
  • Consolidated revenue for the quarter increased 77.5% to a record $110.9 million as compared to $62.5 million in the same period last year. For the nine months ended March 31, 2012, consolidated revenue increased 49.0% to a record $277.1 million as compared to $185.9 million in the same period last year.
  • GAAP earnings per diluted share for the quarter decreased 7.1% to $0.13 as compared to $0.14 in the same period last year. Adjusted diluted net income per common share for the quarter increased 47.1% to $0.25 as compared to $0.17 in the same period last year.
  • Adjusted EBITDA for the quarter increased 45.5% to a record $13.3 million as compared to $9.2 million in the same period last year.

Fiscal Year 2012 Third Quarter Results

Revenue for the Company’s fiscal 2012 third quarter increased 77.5% to a record $110.9 million as compared to $62.5 million in the same period last year. Service revenue increased 43.4% to a record $65.9 million, as compared to $46.0 million in the same period last year. The increase in service revenues was primarily driven by the Company’s acquisition of ComSource, completed on April 8, 2011, contributing $17.3 million, of which $12.8 million represented non-recurring equipment sales, along with an increase in our access service offering primarily in the government marketplace. Infrastructure revenue increased 172.4% to a record $45.0 million, as compared to $16.5 million in the same period last year. The increase in infrastructure revenues was primarily driven by the achievement of revenue milestones under a major government contract which carries lower than traditional infrastructure margins.

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