In the news release, "TeleCommunication Systems Reports 2011 Fourth
Quarter and Full Year Results," issued earlier today by
TeleCommunication Systems, Inc. (NASDAQ: TSYS), we are advised by
the company that the first column figure in line item "Current
portion of bank borrowings and capital leases" of the "Balance
Sheets" table should read "24,761" rather than "15,261" as
originally issued. Complete corrected text follows.
TeleCommunication Systems Reports 2011 Fourth Quarter and Full
Year Results
13th Consecutive Year of Annual Revenue Growth to $425 Million,
Driving Record Gross Profit of $151 Million
ANNAPOLIS, MD -- February 2, 2012 -- TeleCommunication Systems,
Inc. (TCS) (NASDAQ: TSYS), a world leader in highly reliable and
secure mobile communication technology, reported results for the
fourth quarter and fiscal year ended December 31, 2011.
Fourth Quarter 2011 Results
- Revenue was a record $121.7 million, up 19% from $102.3 million
in the same year-ago quarter.
- Gross profit was a record $39.3 million, up 14% from $34.5
million in the same year-ago quarter.
- EBITDA (Earnings before Interest, Taxes, Depreciation,
Amortization and non-cash stock-based compensation) was $14.0
million versus $17.4 million in the same year-ago quarter. (See
discussion about the presentation of EBITDA and Adjusted Net
Income, non-GAAP terms, below.)
- Adjusted net income totaled $5.8 million or $0.10 per diluted
share, compared to $9.1 million or $0.15 per diluted share in the
fourth quarter of 2010.
- GAAP net income totaled $1.0 million or $0.02 per diluted
share, compared to net income of $3.5 million or $0.06 per diluted
share in the fourth quarter of 2010.
Full Year 2011 Results
- Revenue was a record $425.4 million, up 9% from the previous
record of $388.8 million in 2010. This represented the company's
13th consecutive year of record revenue.
- Gross profit was a record $151.2 million, up 10% from the
previous record of $138.0 million in 2010.
- EBITDA was $59.0 million, compared to $66.3 million in 2010,
and represented the company's second highest yearly EBITDA
following the highest record level set in the prior year.
- Adjusted net income totaled $27.9 million or $0.45 per diluted
share. This compares to adjusted net income of $36.5 million or
$0.60 per diluted share in 2010.
- GAAP net income totaled $7.0 million or $0.12 per diluted
share, compared to net income of $15.9 million or $0.28 per diluted
share in 2010.
- Funded backlog grew to $450 million at year end from $322
million at the beginning of the year.
Management Commentary "The continuous
growth of our company over thirteen years has brought TCS to a
scale that positions us to participate in large market
opportunities around the world, an important differentiator as we
bid on larger contracts and for important carrier business in new
parts of the world," said Maurice B. Tosé, TCS chairman and CEO.
"During 2011, the company made substantial progress in evolving our
mix of deliverables towards more secure, 'TotalCom™' solutions for
federal and state government customers, as well as the growing
global location-based business market, as the contribution from the
more mature text messaging business has become less significant. We
are confident that this mix will yield organic growth in revenue
and operating results in 2012 and subsequent years.
"This was a year of investing for engineering depth, enhanced
performance and functionality of our systems and services, enhanced
sales and marketing, as well as protection of our rapidly growing
portfolio of proprietary intellectual property. Long term profit
growth is our primary objective, as the security and reliability of
communications technology becomes increasingly important to
government, enterprises and many consumers, and TCS is a leader in
fulfilling that demand."
Summary of EBITDA and Adjusted Net Income and
Reconciliation to Net Income
Quarter ended Dec 31 Year ended Dec 31
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
(unaudited) (unaudited)
Revenue $ 121,747 $ 102,275 $ 425,412 $ 388,803
========= ========= ========= =========
EBITDA $ 14,020 $ 17,351 $ 58,971 $ 66,309
Non-cash charges (1) (10,290) (9,236) (38,114) (33,897)
--------- --------- --------- ---------
Income from operations 3,730 8,115 20,857 32,412
Interest and other expense (2,032) (2,916) (8,441) (8,386)
Tax provision (657) (1,747) (5,412) (8,147)
--------- --------- --------- ---------
Net Income 1,041 3,452 7,004 15,879
========= ========= ========= =========
Diluted shares for Net Income
per Share (2) 58,003 55,955 58,581 56,032
Net Income per Share - Diluted $ 0.02 $ 0.06 $ 0.12 $ 0.28
========= ========= ========= =========
Net Income $ 1,041 $ 3,452 $ 7,004 $ 15,879
Non-cash stock based
compensation expense 2,762 2,754 9,672 10,172
Amortization of acquired
intangible assets 1,404 1,160 5,535 4,664
Non-cash tax expense 398 1,588 4,921 5,010
Amortization of deferred finance
fees 187 187 798 750
--------- --------- --------- ---------
Adjusted Net Income 5,792 9,141 27,930 36,475
Add back tax-effected
convertible debt interest
expense (2) 714 770 2,627 3,044
--------- --------- --------- ---------
Adjusted Net Income for Diluted
EPS calculation $ 6,506 $ 9,911 $ 30,557 $ 39,519
========= ========= ========= =========
Diluted shares for Adjusted Net
Income per Share (2) 68,005 65,957 68,583 66,034
Adjusted Net Income per Share -
Diluted $ 0.10 $ 0.15 $ 0.45 $ 0.60
========= ========= ========= =========
(1)Non-cash charges are depreciation/amortization of fixed assets, acquired
intangible assets, software development costs and stock-based compensation
expense.
(2)Shares issuable via the convertible debt are included if dilutive, in
which case tax-effected interest expense on the debt is excluded from the
determination of Net Income per Share and Adjusted Net Income per Share.
Fourth Quarter and Full Year 2011 Financial
Highlights
Revenue and Gross Profit (unaudited):
Three months ended December 31
--------------------------------------------------------
2011 2010 Incr. (Decr.)
------------------ ------------------ ------------------
Coml. Govt. Total Coml. Govt. Total Coml. Govt. Total
----- ----- ------ ----- ----- ------ ----- ----- -----
Revenue ($millions)
Services $44.3 $34.6 $ 78.9 $45.4 $27.4 $ 72.8 $(1.1) $ 7.2 $ 6.1
Systems 3.9 38.9 42.8 5.8 23.7 29.5 (1.9) 15.2 13.3
----- ----- ------ ----- ----- ------ ----- ----- -----
Total revenue $48.2 $73.5 $121.7 $51.2 $51.1 $102.3 $(3.0) $22.4 $19.4
===== ===== ====== ===== ===== ====== ===== ===== =====
Gross profit
($millions)
Gross profit-
services $23.3 $ 9.8 $ 33.1 $22.3 $ 7.5 $ 29.8 $ 1.0 $ 2.3 $ 3.3
As % of rev 53% 28% 42% 49% 27% 41%
Gross profit-
systems 0.8 5.4 6.2 1.9 2.8 4.7 (1.1) 2.6 1.5
As % of rev 21% 14% 14% 33% 12% 16%
----- ----- ------ ----- ----- ------ ----- ----- -----
Total gross
profit $24.1 $15.2 $ 39.3 $24.2 $10.3 $ 34.5 $(0.1) $ 4.9 $ 4.8
===== ===== ====== ===== ===== ====== ===== ===== =====
As % of rev 50% 21% 32% 47% 20% 34%
Twelve months ended December 31
-------------------------------------------------------------
2011 2010 Incr. (Decr.)
-------------------- -------------------- -------------------
Coml. Govt. Total Coml. Govt. Total Coml. Govt. Total
------ ------ ------ ------ ------ ------ ------ ----- -----
Revenue
($millions)
Services $174.7 $129.2 $303.9 $169.0 $ 93.3 $262.3 $ 5.7 $35.9 $41.6
Systems 16.5 105.0 121.5 32.7 93.8 126.5 (16.2) 11.2 (5.0)
------ ------ ------ ------ ------ ------ ------ ----- -----
Total
revenue $191.2 $234.2 $425.4 $201.7 $187.1 $388.8 $(10.5) $47.1 $36.6
====== ====== ====== ====== ====== ====== ====== ===== =====
Gross profit
($millions)
Gross
profit-
services $ 93.7 $ 39.2 $132.9 $ 83.3 $ 26.8 $110.1 $ 10.4 $12.4 $22.8
As % of rev 54% 30% 44% 49% 29% 42%
Gross
profit-
systems 3.2 15.1 $ 18.3 18.3 9.6 27.9 (15.1) 5.5 (9.6)
As % of rev 19% 14% 15% 56% 10% 22%
------ ------ ------ ------ ------ ------ ------ ----- -----
Total Gross
Profit $ 96.9 $ 54.3 $151.2 $101.6 $ 36.4 $138.0 $ (4.7) $17.9 $13.2
====== ====== ====== ====== ====== ====== ====== ===== =====
As % of rev 51% 23% 36% 50% 19% 35%
(Gross Profit = revenue minus direct cost of revenue, including
amortization of capitalized software development costs and related
non-cash stock-based compensation.)
Government Segment Revenue and Gross Profit:
Government segment fourth quarter 2011 revenue was a record
$73.5 million, up 44% from the same year-ago quarter, as continued
funding from the U.S. government during the period enabled delivery
of TCS TotalCom solutions, including new SwiftLink terminals
incorporating tactical transportable tropo technology, and new
secure mobile communications solutions. Government services revenue
of $34.6 million was up 26% over the same year-ago period,
substantially all organic growth, while government systems revenue
of $38.9 million was up $15.2 million or 64% over the same year-ago
period, including about $7 million from the Trident business
acquired in the first quarter of 2011.
Government segment gross profit in the fourth quarter was $15.2
million or 21% of revenue, up from $10.3 million or 20% of revenue
in the same year-ago period. Government services gross profit was
$9.8 million or 28% of revenue, up from $7.5 million or 27% of
revenue in the same year-ago period. Government systems gross
profit was $5.4 million or 14% of revenue, up from $2.8 million or
12% of revenue in the same year-ago period.
For the full year, revenue from government customers totaled a
record $234.2 million, up $47 million or 25% from the 2010 record
$187.1 million. Government services revenue of $129.2 million was
up 38% over 2010, reflecting growth in cyber security training,
communication systems field support and maintenance, and sales of
satellite airtime. Government systems revenue was $105 million, up
12% over 2010, including sales of system components resulting from
acquiring the Trident business in 2011.
Gross profit from government segment business for full year 2011
was $54.3 million, up 49% from 2010 or 23% of revenue, up from 19%
in 2010. Gross profit from government services in 2011 was $39.2
million or 30% of revenue, up from $26.8 million or 29% of revenue
in 2010 on higher volume. Government systems gross profit for the
year was $15.1 million or 14% of revenue, up from $9.6 million or
10% of revenue in 2010, on increased sales, and contributions from
Trident.
Commercial Segment Revenue and Gross Profit:
Commercial segment fourth quarter 2011 revenue was $48.2
million, down 6% from the year-ago quarter. Commercial services
revenue of $44.3 million was flat compared to the year-ago quarter,
and systems revenue of $3.9 million was down as more carrier
customers have elected to acquire location-based infrastructure on
a hosted or managed services business model rather than buy
in-network systems.
Fourth quarter 2011 commercial segment gross profit was $24.1
million or 50% of revenue, about the same as the 2010 fourth
quarter. Gross profit from commercial services was $23.3 million or
53% of revenue, up from $22.3 million or 49% of revenue in Q4 2010,
reflecting an increase in E9-1-1 service revenue. Fourth quarter
2011 commercial systems gross profit was $0.8 million or 21% of
revenue, compared to $1.9 million or 33% of revenue in the same
year-ago quarter on the lower volume.
For the full year 2011, commercial services revenue of $174.7
million was up 3% over 2010 reflecting growth in location-based
solutions, while commercial systems revenue was down as a result of
the expected lower revenue from text messaging licenses, so that
overall commercial segment revenue was down 5% for the year.
Commercial segment gross profit from 2011 business was $96.9
million versus $101.6 million in 2010, as growth in location-based
business partly offset the expected lower contribution from text
messaging. Commercial services gross profit in 2011 was $93.7
million or 54% of revenue, up from $83.3 million or 49% of revenue
in 2010. Commercial systems gross profit was down on lower
messaging license volume.
Operating Costs and Expenses:
R&D: Fourth quarter 2011 R&D expense was $10.3 million
(8% of revenue), up 38% from the same year-ago quarter. For the
full year, R&D expense was $37.1 million (9% of revenue), up
$7.0 million from $30.1 million (8% of revenue) in 2010. TCS
continues to invest to enhance competitiveness in location-based
technology and related applications for wireless carriers, as well
as telematics, next generation 9-1-1, and secure, highly reliable
tactical and cellular communication solutions.
SG&A: Fourth quarter 2011 selling, general and
administrative expense was $20.5 million (17% of revenue), up from
fourth quarter 2010's $14.8 million (14% of revenue). For the full
year, selling, general and administrative expense was $75.6 million
(18% of revenue), up from $61.1 million (16% of revenue) in 2010.
The increase for the quarter and the year reflects the addition of
the SG&A of Trident operations acquired in January 2011, as
well as increased investment in intellectual property-related
activities.
Non-cash charges: Total non-cash charges to operating profit
were $10.3 million in the fourth quarter of 2011, up from $9.2
million in Q4-10, and for the full year, total non-cash charges
were $38.1 million versus $33.9 million in 2010. The increases
reflect amortization of recent investments in acquired assets and
capitalized software development, mainly for hosted and cloud-based
services.
Income Taxes:
For the fourth quarter, the company recorded $0.7 million or a
39% provision for income taxes against pre-tax income, and for the
full year booked a $5.4 million or 44% effective rate provision.
The 2010 TCS effective tax rate was 34%. Note that most of the 2011
and prior year tax provisions were non-cash, as loss carryforwards
have been applied to taxable income.
Liquidity and Capital Resources:
At December 31, 2011, TCS had $60.1 million of cash,
equivalents, and marketable securities up from to $52.2 million at
the beginning of the quarter. Funds were generated in the fourth
quarter of 2011 from $14 million in EBITDA, $3.4 million from
working capital reduction, net bank borrowing of $7.2 million, and
$1.6 million from new lease financing for fixed assets. Uses of
cash for the quarter included $7.3 million for capital expenditures
including software development, $5 million for the final NIM
acquisition debt payment, $1.6 million of lease payments, and $4.4
million for cash interest, cash taxes and other expenses. The
company had approximately $84 million of total liquidity, including
$24 million of unused borrowing availability under its bank credit
line, at year end.
Intellectual Property:
TCS was issued 10 patents during the fourth quarter of 2011. At
year end, the company's patent portfolio included 203 patents
issued in the U.S. and abroad, and more than 300 patent
applications pending. TCS made substantial progress in identifying
and prioritizing opportunities for monetization of this portfolio,
and expect to report important milestones in the first half of
2012.
Backlog:
9/30/2011 New Orders Revenue 12/31/2011
----------- ----------- ----------- -----------
($millions)
Commercial Funded Contract
Backlog $ 298.9 $ 18.7 $ (48.2) $ 269.4
Government Funded Contract
Backlog $ 186.8 $ 66.8 $ (73.5) $ 180.1
----------- ----------- ----------- -----------
Total Funded Contract
Backlog $ 485.7 $ 85.5 $ (121.7) $ 449.5
Un-Funded Customer Options $ 844.1 $ (34.7) $ 809.4
----------- ----------- ----------- -----------
Total Backlog $ 1,329.8 $ 50.8 $ (121.7) $ 1,258.9
=========== =========== =========== ===========
For the full year, funded backlog grew to $450 million at year
end from $322 million at the beginning of the year. The company
expects to recognize approximately $306 million of the funded
backlog in the next 12 months.
Funded contract backlog represents contracts for which fiscal
year funding has been appropriated by the company's customers
(mainly federal agencies), and for hosted services (mainly for
wireless carriers); backlog for which is computed by multiplying
the most recent month's contract or subscription revenue times the
remaining months under existing long-term agreements, which is the
best available information for anticipating revenue under those
agreements. Total backlog, as is typically measured by government
contractors, includes orders covering optional periods of service
and/or deliverables, but for which budgetary funding may not yet
have been approved. The company's backlog at any given time may be
affected by a number of factors, including the availability of
funding, contracts being renewed, or new contracts being signed
before existing contracts are completed. Some of the company's
backlog could be canceled for causes such as late delivery, poor
performance and other factors. Accordingly, a comparison of backlog
from period to period is not necessarily meaningful and may not be
indicative of eventual actual revenue.
Conference Call TCS will hold a conference
call later today (February 2, 2012) to discuss these financial
results. The company's chairman and CEO, Maurice B. Tosé, and
senior vice president and CFO, Tom Brandt, will host the call
starting at 5:00 p.m. Eastern time. A question and answer session
will follow management's presentation.
To participate in the call, dial the appropriate number 5-10
minutes prior to the start time, ask for the TeleCommunication
Systems conference call and provide the conference ID.
Dial-In Number: 1-877-941-4774 International: 1-480-629-9760
Conference ID#: 4506927
The conference call will be broadcasted simultaneously on the
company's Web site at www.telecomsys.com. For the webcast, please
go to the Web site at least 15 minutes early to register, download,
and install any necessary audio software. If you have any
difficulty connecting with the conference call or webcast, please
contact Liolios Group at 1-949-574-3860.
A replay of the call will be available after 8:00 p.m. Eastern
time on the same day and until February 16, 2012.
Toll-free replay number: 1-877-870-5176 International replay
number: 1-858-384-5517 Replay pin number: 4506927
About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) is a world
leader in highly reliable and secure mobile communication
technology. TCS infrastructure forms the foundation for market
leading solutions in E9-1-1, text messaging, commercial location
and deployable wireless communications. TCS is at the forefront of
new mobile cloud computing services, providing wireless
applications for navigation, hyper-local search, asset tracking,
social applications and telematics. Millions of consumers around
the world use TCS wireless apps as a fundamental part of their
daily lives. Government agencies utilize TCS' cyber security
expertise, professional services, and highly secure deployable
satellite solutions for mission-critical communications.
Headquartered in Annapolis, MD, TCS maintains technical, service
and sales offices around the world. To learn more about emerging
and innovative wireless technologies, visit www.telecomsys.com.
About the Presentation of EBITDA EBITDA is
not a financial measure calculated and presented in accordance with
U.S. generally accepted accounting principles (GAAP) and should not
be considered as an alternative to net income, operating income or
any other financial measures so calculated and presented, nor as an
alternative to cash flow from operating activities as a measure of
liquidity. The company defines EBITDA as net income/(loss) before
depreciation; amortization of non-cash stock-based compensation;
amortization of capitalized software development costs, property
and equipment and other intangibles; taxes; and interest expense
and other non-cash financing costs. Other companies (including
competitors) may define EBITDA differently. The company presents
EBITDA because management believes it to be an important
supplemental measure of performance that is commonly used by
securities analysts, investors and other interested parties in the
evaluation of companies in our industry. Management also uses this
information internally for forecasting and budgeting. It may not be
indicative of the historical operating results of TCS nor is it
intended to be predictive of potential future results. Investors
should not consider EBITDA in isolation or as a substitute for
analysis of the company's results as reported under GAAP. See "GAAP
to non-GAAP Reconciliation" above for further information on this
non-GAAP measure. Shares used in the calculation of GAAP diluted
earnings per share are the same as the shares used in the
calculation of diluted adjusted operating income/(loss) per share
except when the company reports a GAAP loss.
About the Presentation of Adjusted Net
Income Adjusted net income is not a financial measure
calculated and presented in accordance with GAAP and should not be
considered as an alternative to net income, operating income or any
other financial measures so calculated and presented, nor as an
alternative to cash flow from operating activities as a measure of
liquidity. Adjusted net income is defined as GAAP net income
adjusted for amortization of acquired intangibles, non-cash
stock-based compensation expense, non-cash tax and financing
charges.TCS has provided adjusted net income in addition to GAAP
financial results because management believes this non-GAAP measure
helps provide a consistent basis for comparison between quarters
and fiscal year growth rates that are not influenced by certain
non-cash charges and credits or items not part of our ongoing
operations, and is helpful in understanding the underlying
operating results.
Forward-looking Statements This
announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities and Exchange Act of 1934, as amended.
These statements are based upon TCS' current expectations and
assumptions that are subject to a number of risks and uncertainties
that would cause actual results to differ materially from those
anticipated. The words, "believe," "expect," "intend,"
"anticipate," "should," "prospect," and variations of such words,
and similar expressions identify forward-looking statements, but
their absence does not mean that the statement is not
forward-looking. Statements in this announcement that are
forward-looking include, but are not limited to statements that are
made in the management commentary section and by Mr. Tosé regarding
our (a) scale and position to participate in large market
opportunities globally; (b) progress in evolving our mix of
deliverables; (c) growing global location-based business; (d)
confidence in organic growth in revenue in operating results in
2012 and subsequent years; (e) investments in the business
operations to enhance competitiveness; (f) long term profit growth
objective; (g) leadership in fulfilling demand for security and
reliability of communications technology; (h) borrowing
availability; (i) expectations regarding milestones in monetizing
intellectual property; and (j) ability to recognize any of the
reported backlog.
Additional risks and uncertainties are described in the
company's filings with the Securities and Exchange Commission
(SEC). These include without limitation risks and uncertainties
relating to the company's financial results and the ability of the
company to (i) sustain profitability, (ii) continue to rely on its
customers and other third parties to provide additional products
and services that create a demand for its products and services,
and to do so at prices that will allow us to continue to fund our
operations, (iii) conduct its business in foreign countries, (iv)
adapt and integrate new technologies into its products and
adequately expand its data centers and data delivery systems, (v)
expand its sales and business offerings in the wireless
communications industry, (vi) develop software and provide services
without any errors or defects and with adequate security threat
protections, (vii) protect its intellectual property rights, (viii)
have sufficient capital resources to fund its operations, (ix) not
incur substantial costs from product liability and IP infringement
claims and indemnification demands relating to its software, (x)
implement its sales and marketing strategy and (xi) successfully
integrate the assets and personnel obtained in its acquisitions and
investments. Existing and prospective investors are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The company undertakes no
obligation to update or revise the information in this press
release, whether as a result of new information, future events or
circumstances, or otherwise.
TeleCommunication Systems, Inc.
Condensed Consolidated Balance Sheets
December 31, December 31,
(amounts in $000) 2011 2010
------------- -------------
(unaudited)
Assets
Current assets:
Cash, equivalents, and marketable securities $ 60,130 $ 81,527
Accounts receivable, net 64,716 52,073
Unbilled receivables 31,247 32,358
Inventory 7,143 5,440
Deferred income tax assets 8,602 8,179
Deferred project costs and other current
assets 16,158 8,961
------------- -------------
Total current assets 187,996 188,538
Property and equipment, net 53,506 39,337
Software development costs, net 31,151 39,427
Acquired intangible assets, net 31,675 28,264
Goodwill 176,477 159,143
Other assets 8,834 8,100
------------- -------------
Total assets $ 489,639 $ 462,809
============= =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 61,867 $ 56,403
Deferred revenue 14,358 18,063
Current portion of bank borrowings and
capital leases 24,761 24,519
------------- -------------
Total current liabilities 100,986 98,985
Notes payable and capital leases, less current
portion 125,491 135,981
Deferred income taxes 7,017 8,382
Other liabilities 5,396 3,916
Total stockholders' equity 250,749 215,545
------------- -------------
Total liabilities and stockholders' equity $ 489,639 $ 462,809
============= =============
TeleCommunication Systems, Inc.
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
December 31 December 31,
-------------------- --------------------
($000 except EPS) 2011 2010 2011 2010
--------- --------- --------- ---------
(unaudited) (unaudited)
Revenue
Services $ 78,945 $ 72,811 $ 303,921 $ 262,279
Systems 42,802 29,464 121,491 126,524
--------- --------- --------- ---------
Total revenue 121,747 102,275 425,412 388,803
Direct costs of revenue
Direct cost of services
revenue 45,873 43,032 170,977 152,227
Direct cost of systems 36,610 24,756 103,198 98,613
--------- --------- --------- ---------
Total direct cost of
revenue 82,483 67,788 274,175 250,840
Services gross profit 33,072 29,779 132,944 110,052
As a % of revenue 42% 41% 44% 42%
Systems gross profit 6,192 4,708 18,293 27,911
As a % of revenue 14% 16% 15% 22%
-------- -------- -------- --------
Total gross profit 39,264 34,487 151,237 137,963
Total gross profit as a
% of revenue 32% 34% 36% 35%
Operating expenses
Research and development
expense 10,312 7,462 37,098 30,074
Sales and marketing expense 7,820 5,946 29,394 23,880
General and administrative
expense 12,661 8,851 46,218 37,175
Depreciation and amortization
of property and equipment 3,337 2,953 12,135 9,758
Amortization of acquired
intangible assets 1,404 1,160 5,535 4,664
--------- --------- --------- ---------
Total operating expenses 35,534 26,372 130,380 105,551
--------- --------- --------- ---------
Income from operations 3,730 8,115 20,857 32,412
Interest expense (1,718) (2,337) (7,283) (9,225)
Amortization of debt issuance
expenses (187) (187) (798) (750)
Other income/(expense), net (127) (392) (360) 1,589
--------- --------- --------- ---------
Income before income taxes 1,698 5,199 12,416 24,026
Provision for income taxes (657) (1,747) (5,412) (8,147)
--------- --------- --------- ---------
Net income $ 1,041 $ 3,452 $ 7,004 $ 15,879
========= ========= ========= =========
Net income per share-basic $ 0.02 $ 0.06 $ 0.12 $ 0.30
========= ========= ========= =========
Net income per share-diluted $ 0.02 $ 0.06 $ 0.12 $ 0.28
========= ========= ========= =========
Weighted average shares used in
calculation - basic 57,289 53,321 56,722 53,008
Weighted average shares used in
calculation - diluted (1) 58,003 55,955 58,581 56,032
(1)Shares issuable via the convertible debt are included if dilutive, in
which case tax-effected interest expense on the debt is excluded from the
determination of Net Income per Share.
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Company Contacts: Tom Brandt Senior Vice President and
CFO TeleCommunication Systems, Inc. Tel 410-280-1001
tbrandt@telecomsys.com Graham Sorkin Media Contact Nadel Phelan,
Inc. Tel 831-440-2406 graham@nadelphelan.com Scott Liolios Investor
Relations Liolios Group, Inc. Tel 949-574-3860 info@liolios.com
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Telecommunication Systems (NASDAQ:TSYS)
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From Jul 2023 to Jul 2024