MINNETONKA, Minn., Nov. 10 /PRNewswire-FirstCall/ -- Communications
Systems, Inc. (NASDAQ:JCS) today reported financial results for its
third quarter and nine months ended September 30, 2009. For the
three months ended September 30, 2009, net income was $1,861,000 or
$.22 per diluted share compared to $2,794,000 or $.32 per diluted
share for the comparable period in 2008. Revenue was $28,107,000
compared to $32,683,000 for the same period in 2008. For the nine
months ended September 30, 2009, consolidated sales decreased 11%
to $83,457,000 compared to $94,295,000 for the same period last
year while net income was down slightly to $4,833,000 or $.58 per
diluted share from $5,241,000 or $.61 per diluted share in the same
period of 2008. Despite the continuing recession within the United
States, including weakness in the housing and construction sectors,
the Company's consolidated revenues from sales in North America
increased slightly in the first nine months of 2009 compared to the
same period in 2008. Consolidated revenues from sales outside North
America during the first nine months of 2009 were, however,
impacted by weak economic conditions in Europe and the rest of the
world and declined approximately 51% compared to the same period in
2008. Additional and more detailed information regarding the
Company's financial results will be contained in the Company's
report on Form 10-Q which will be filed with the Securities and
Exchange Commission on or about November 12, 2009. Jeffrey K. Berg,
President and CEO of Communications Systems, Inc., commented: "CSI
had a strong third quarter and first nine months of 2009 even when
compared to 2008 which was one of the best years in CSI's 40-year
history. While the world-wide economy in general continues to be
more challenging than most economists predicted, our operating
income for the third quarter and nine months ended September 30,
2009 exceeded our expectations." "In addition, even though we
expect difficult market conditions for the remainder of 2009 and
into 2010, our financial strength will enable us to continue making
strategic investments for future sales growth and increased
profitability at each of our business segments." David T. McGraw,
Vice President - Finance and CFO, also commented: "CSI's balance
sheet remains very strong with a current ratio of 6 to 1 and cash,
cash equivalents and investments have increased by $9.0 million
dollars to $38,954,000 from December 31, 2008. Net investment
income has increased by 57% in 2009 compared to the first nine
months of 2008, due to a shift in investment strategy that started
in 2008. CSI has over $18,800,000 invested in certificates of
deposit that are currently yielding over 2.2%, significantly higher
than current money market funds. During the first nine months of
2009, cash provided by operations was $15,223,000 compared to
$6,695,000 for the same period in 2008. Significant decreases in
outstanding receivables and reductions in inventories added to cash
flows from operations. Due to our strong cash flow effective as of
July 1, 2009 our Board of Directors increased the dividend payable
to shareholders to $.14 per share compared to $.12 per share for
the eight quarters prior to July 1, 2009." About Communications
Systems Communications Systems, Inc. provides physical connectivity
infrastructure and services for cost-effective broadband solutions
and is a leading supplier of voice-grade connecting devices and
wiring systems. CSI serves the broadband network market as the
world's leading supplier of media conversion technology that
permits networks to deploy fiber optic technology while retaining
the copper-based infrastructure already embedded in the network. In
addition, CSI supplies copper wire and fiber optic structured
wiring systems for broadband networks, as well as line filters for
digital subscriber line service. CSI also provides network design,
training and management services. Cautionary Statement From time to
time, in reports filed with the Securities and Exchange Commission,
in press releases, and in other communications to shareholders or
the investing public, the Communications Systems Inc. may make
forward-looking statements concerning possible or anticipated
future financial performance, business activities or plans which
are typically preceded by the words "believes," "expects,"
"anticipates," "intends" or similar expressions. For these
forward-looking statements, the Company claims the protection of
the safe harbor for forward-looking statements contained in federal
securities laws. Shareholders and the investing public should
understand that these forward-looking statements are subject to
risks and uncertainties which could cause actual performance,
activities or plans after the date the statements are made to
differ significantly from those indicated in the forward-looking
statements when made. CSI CONSOLIDATED SUMMARY OF EARNINGS Selected
Income Statement Data CSI CONSOLIDATED SUMMARY OF EARNINGS Selected
Income Statement Data Three Months Three Months Nine Months Nine
Months Ended Ended Ended Ended September 30, September 30,
September 30, September 30, 2009 2008 2009 2008 Sales $28,107,200
$32,682,521 $83,456,557 $94,294,798 Gross margin 10,867,919
13,526,814 31,297,459 36,239,068 Operating income 3,349,210
5,235,801 7,893,553 8,364,176 Income before income taxes 3,521,819
5,495,127 8,472,822 8,941,204 Income taxes 1,660,485 2,701,000
3,640,175 3,700,000 Net income $1,861,334 $2,794,127 $4,832,647
$5,241,204 Basic net income per share $0.22 $0.33 $0.58 $0.61
Diluted net income per share $0.22 $0.32 $0.58 $0.61 Cash dividends
per share $0.14 $0.12 $0.38 $0.36 Average basic shares outstanding
8,347,701 8,579,530 8,336,027 8,599,558 Average dilutive shares
outstanding 8,371,155 8,612,194 8,345,290 8,638,465 Selected
Balance Sheet Data September 30, December 31, 2009 2008 Total
assets $102,206,769 $98,737,791 Cash & Investments 38,953,564
29,951,561 Property, plant and equipment, net 13,959,122 12,014,541
Long-term liabilities 3,926,000 4,918,716 Stockholders' equity
85,554,449 83,728,143 DATASOURCE: Communications Systems, Inc.
CONTACT: Jeffrey K. Berg, President and Chief Executive Officer, or
David T. McGraw, Vice President - Finance, Chief Financial Officer,
+1-952-996-1674, both of Communications Systems, Inc. Web Site:
http://www.commsystems.com/
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