RuggedCom reports record purchase orders with 16% revenue growth for Q2
fiscal 2010
(All dollar amounts are in US dollars) Highlights from the Quarter: - 11% increase in Purchase Orders year over year, a new company record - 16% increase in Revenue year over year - 13% increase in Gross Margin year over year - 69% decrease in Net Income year over year - Added 100 new customers, up from 97 in the year ago period
CONCORD, ON,
"We're pleased to report another quarter in which we received record purchase orders, but for the second quarter in a row, revenues lagged orders due to timing. Both gross and net profit margins continue to be impacted by the strengthening Canadian dollar and by increases in operating expenses to support our continued growth," said Marzio Pozzuoli, President and Chief Executive Officer.
Second Quarter Results
Total revenue for the quarter was
The Company booked record customer purchase orders totaling
Gross margin for the quarter was
Second quarter net income was
Also, as expected, the recent WiNetworks Ltd. acquisition on
The Company recorded a provision for income taxes of
Second quarter basic earnings per share were
The Company added 100 new customers in the quarter, up from 97 in the year ago period.
Conference Call and Webcast ---------------------------
Management will host a conference call at
About RuggedCom Inc. --------------------
RuggedCom is a leading provider of rugged communications networking solutions designed for mission-critical applications in harsh environments. RuggedCom's technology solutions include Ethernet switches, network routers, wireless devices, serial servers, media converters, software and professional services. RuggedCom's products are designed for use in harsh environments such as those found in electrical power substations and "Smart Grids", intelligent transportation systems, industrial process control and military applications. For further information, please visit www.RuggedCom.com.
The unaudited consolidated interim financial statements and management's discussion and analysis of the results of operations and financial condition for the three month and six month periods ended
RuggedCom Inc. CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2nd Quarter ended September 30, 2009 RuggedCom Inc. CONSOLIDATED BALANCE SHEETS (in thousands of United States dollars) September March 30, 2009 31, 2009 (unaudited) (audited) $ $ - - Assets Current Cash and cash equivalents (note 5) 38,255 45,099 Accounts receivable (note 6) 10,278 9,780 Prepaid expenses and other 2,164 1,025 Inventories (note 4 and note 7) 9,115 4,555 Income taxes recoverable 3,064 - Future income taxes 411 283 ------------------------ 63,287 60,742 Future income taxes 82 246 Property and equipment 6,023 2,662 Goodwill 2,895 - Other assets (note 3) 11,522 580 ------------------------ 83,809 64,230 ------------------------ ------------------------ Liabilities Current Accounts payable and accrued liabilities 11,015 5,793 Current portion of warranty 698 482 Income taxes payable - 2,268 Future income taxes 1,966 - Current portion of deferred income 106 50 Current portion of obligations under capital lease 72 126 ------------------------ 13,857 8,719 ------------------------ Warranty 430 347 Deferred income 24 21 Obligations under capital lease 35 48 Leasehold inducements 182 6 ------------------------ 671 422 ------------------------ 14,528 9,141 ------------------------ Shareholders' Equity Capital stock (note 8) 48,695 46,820 Contributed surplus (note 9) 1,993 1,559 Accumulated other comprehensive income (loss) (note 10) 1,041 (8,952) Retained earnings 17,552 15,662 ------------------------ 18,593 6,710 ------------------------ 69,281 55,089 ------------------------ 83,809 64,230 ------------------------ ------------------------ Contingent liabilities (note 19) See accompanying notes to consolidated interim financial statements. RuggedCom Inc. CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (in thousands of United States dollars, except per share information) (unaudited) 3 month 3 month 6 month 6 month period period period period ended ended ended ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 $ $ $ $ - - - - Revenue 16,740 14,385 32,757 27,136 Cost of goods sold 6,847 5,594 13,787 10,477 ------------------------------------------------ Gross margin 9,893 8,791 18,970 16,659 ------------------------------------------------ Operating expenses Research and development 1,780 1,156 3,805 2,362 Sales and marketing 3,485 2,513 6,463 5,077 General and administrative 1,808 1,238 3,761 2,697 Investment tax credits (199) (404) (386) (499) Loss on foreign exchange 998 (384) 1,529 (192) Amortization 508 329 901 588 ------------------------------------------------ 8,380 4,448 16,073 10,033 ------------------------------------------------ Operating income 1,513 4,343 2,897 6,626 Net interest income 38 382 101 828 ------------------------------------------------ Income before income taxes 1,551 4,725 2,998 7,454 ------------------------------------------------ Income taxes (note 15) Current 492 1,523 997 2,528 Future 54 (3) 111 (2) ------------------------------------------------ 546 1,520 1,108 2,526 ------------------------------------------------ Net income for the period 1,005 3,205 1,890 4,928 Retained earnings - Beginning of period 16,547 5,057 15,662 3,334 ------------------------------------------------ Retained earnings - End of period 17,552 8,262 17,552 8,262 ------------------------------------------------ ------------------------------------------------ Net earnings per share (note 11) Basic $ 0.08 $ 0.27 $ 0.16 $ 0.42 Diluted $ 0.08 $ 0.26 $ 0.15 $ 0.40 Basic weighted average number of common shares outstanding 12,098,002 11,763,504 11,997,705 11,741,683 Diluted weighted average number of common shares outstanding 12,574,050 12,356,833 12,599,535 12,318,891 See accompanying notes to consolidated interim financial statements. RuggedCom Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands of United States dollars ) (unaudited) 3 month 3 month 6 month 6 month period period period period ended ended ended ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 $ $ $ $ - - - - Net income for the period 1,005 3,205 1,890 4,928 Foreign currency translation gain (loss) (note 10) 5,423 (2,365) 9,993 (2,034) ------------------------------------------------ Comprehensive income 6,428 840 11,883 2,894 ------------------------------------------------ ------------------------------------------------ See accompanying notes to consolidated interim financial statements. RuggedCom Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of United States dollars) (unaudited) 3 month 3 month 6 month 6 month period period period period ended ended ended ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 $ $ $ $ - - - - Cash provided by (used in) Operating activities Net income for the period 1,005 3,205 1,890 4,928 Non-cash items Amortization of property and equipment 263 311 565 555 Amortization of other assets 244 18 335 33 Future income taxes 54 (3) 111 (2) Stock based compensation 294 164 572 336 Warranty 1 89 30 191 Leasehold inducements 65 (8) 164 (16) Net change in non-cash working capital (note 14a) 884 1,299 (3,015) 116 ------------------------------------------------ 2,810 5,075 652 6,141 ------------------------------------------------ Investing activities Additions to short term investments - 34,787 - 34,787 Acquisition of subsidiary (note 4) (7,970) - (7,970) - Additions to property and equipment (2,327) (572) (2,880) (1,013) Additions to other assets (343) (38) (995) (97) ------------------------------------------------ (10,640) 34,177 (11,845) 33,677 ------------------------------------------------ Financing activities Repayment of obligations under capital lease (46) (70) (92) (140) Repayment of loan (note 4) (4,875) - (4,875) - Issuance of common shares 31 116 1,737 173 ------------------------------------------------ (4,890) 46 (3,230) 33 ------------------------------------------------ Effect of exchange rates on cash 3,870 (2,260) 7,579 (2,213) ------------------------------------------------ Increase in cash and cash equivalents during the period (8,850) 37,038 (6,844) 37,638 Cash and cash equivalents - Beginning of period 47,105 8,637 45,099 8,037 ------------------------------------------------ Cash and cash equivalents - End of period (note 14b) 38,255 45,675 38,255 45,675 ------------------------------------------------ ------------------------------------------------ Supplemental disclosures Interest paid $ 5 $ 13 $ 11 $ 29 Income taxes paid $ 1,144 $ 786 $ 5,998 $ 1,439
For further information: Roy Dalton, Chief Financial Officer, RuggedCom Inc., Tel: (905) 856-5288, Email: [email protected]
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