Globecomm Reports Fiscal 2009 Fourth Quarter and Fiscal Year 2009 Financial Results

Globecomm Systems Inc., a provider of satellite-based communications infrastructure solutions and services, announced financial results for the fiscal 2009 fourth quarter and fiscal year ended June 30.

Globecomm noted in a September 9 release that it is reporting its financial results on a generally accepted accounting principles (GAAP) basis as well as reporting adjusted EBITDA, a non-GAAP financial measure. A summary of the company's results include:

- Record fiscal year 2009 service revenues of $81.3 million as compared to $62.9 million last year.

- Fiscal year 2009 consolidated revenues of $170.2 million as compared to $196.5 million last year.

- Fiscal year 2009 GAAP earnings per diluted share of $0.16 as compared to GAAP earnings per diluted share of $1.34 last year. Fiscal year 2008, included the positive effect of $0.62 per diluted share related to a non-cash reduction in the deferred tax asset valuation allowance last year.

- Fiscal year 2009 adjusted EBITDA of $12.2 million as compared to $19.9 million last year.

Revenues for the Company's fiscal 2009 fourth quarter decreased 12.8 percent to $49.2 million compared to $56.4 million in the same period last year. Revenues from services increased 54.1 percent to a record $24.7 million as compared to $16.0 million in the same period last year. The increase in service revenue was primarily driven by the Company's acquisitions of Mach 6 and Telaurus, which combined contributed $4.8 million, coupled by an increase in lifecycle support services. Revenues from infrastructure solutions decreased by 39.3 percent to $24.5 million compared to $40.4 million in the same period last year. The decrease in infrastructure solution revenues was driven by a decrease in systems design and integration revenue caused by the global economic slowdown resulting in government and commercial customers and prospects delaying projects.

Net income for the company's fiscal 2009 fourth quarter decreased to $1.0 million or $0.05 per diluted share compared to net income of $16.9 million, or $0.82 per diluted share, which included the positive effect of $0.62 per diluted share related to a non-cash reduction in the deferred tax asset valuation allowance in the fourth quarter of fiscal 2008. Adjusted EBITDA for the fourth quarter of 2009 decreased to $3.2 million as compared to $5.4 million in the fourth quarter of 2008. The decrease in net income and adjusted EBITDA was primarily caused by lower infrastructure solutions revenues.

Revenues for the company's fiscal year ended June 30, decreased 13.4 percent to $170.2 million compared to $196.5 million last year. Revenues from services increased by 29.3 percent to a record $81.3 million, which included $5.8 million from Mach 6 and Telaurus, compared to $62.9 million last year. The increase in service revenue was primarily driven by an increase in lifecycle support services. Revenues from infrastructure solutions decreased 33.5 percent to $88.8 million as compared to $133.6 million last year. The decrease in infrastructure solution revenues was caused by the global economic slowdown resulting in government and commercial customers and prospects delaying projects.

Net income for the Company's fiscal year ended June 30, decreased to $3.3 million or $0.16 per diluted share compared to net income of $27.0 million or $1.34 per diluted share, which included the positive effect of $0.62 per diluted share related to the non-cash reduction in the deferred tax asset valuation allowance last year. Adjusted EBITDA for the company's fiscal year ended June 30, decreased to $12.2 million as compared to $19.9 million last year. The decrease in net income and adjusted EBITDA was primarily caused by lower infrastructure solutions revenues.

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