Quarterly results released after close today.
The full report is at http://www.ruggedcom.com. Here is an excerpt:
"Highlights from the Quarter:
- 193% increase in Net Income year over year
- 80% increase in Gross Margin year over year
- 53% increase in Revenue year over year
- 38% increase in Purchase Orders year over year
- Added 98 new customers, up 10% year over year
WOODBRIDGE, ON, Feb. 11 /CNW/ - RuggedCom Inc. ("RuggedCom") (TSX:RCM), a leading provider of rugged communications networking solutions designed for mission-critical applications in harsh environments, today announced its financial results for the third quarter of fiscal 2009, ended December 31,
2008.
"Our third quarter results reflect consistently strong growth in both
orders and revenues," said Marzio Pozzuoli, President and Chief Executive
Officer. "Improvements in our gross margins and other factors resulted in the
Company achieving another record quarter of earnings."
Third Quarter Results
Total revenue for the quarter was $15.8 million, representing the
Company's 18th consecutive record quarter. Revenue increased 53% from the
comparable quarter of a year ago. Revenue growth was primarily driven by
increased sales in the electric power market, which comprised 68% of the
Company's total revenue, and which grew 54% over the same quarter last year.
Customer purchase orders totaled $15.3 million for the quarter,
representing an increase of 38% over the same quarter last year.
Gross margin for the quarter was $10.4 million, an increase of 80% over
the comparable period last year. On a percentage of revenue basis, third
quarter gross margin was 65.7%, a significant increase of 9.5 percentage
points over a gross margin of 56.2% for the same period last year. The
increase was due to ongoing efforts to reduce product unit costs, favourable
product and customer mix, in addition to the favourable effects of a weaker
Canadian dollar versus the US dollar.
Third quarter net income was $4.0 million, representing the Company's
15th consecutive quarter of profitability. This represents a significant
increase over net income of $1.4 million in the third quarter last year. The
increase was mainly due to a combination of revenue growth and significant
increase in gross margin percentage, offset by only a modest increase in
operating expenses. The Company also recorded a provision for income taxes of
$2.0 million with an effective tax rate of 33.2%. This compares to $1.1
million income tax expense in the same period last year.
Third quarter basic earnings per share were $0.34 compared to $0.12 for
the same quarter last year while fully diluted earnings per share were $0.33
compared to $0.11 for the same quarter last year.
The Company added 98 new customers in the quarter, an increase of 10%
over the same quarter last year.
Conference Call and Webcast
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Management will host a conference call at 8:30 a.m. (ET) on Thursday,
February 12, 2009. Listeners may attend the conference call by dialing
416-644-3414 or 1-800-733-7571. The live audio webcast can be accessed at
RuggedCom's web site at www.RuggedCom.com. The webcast will also be archived
on the site. A taped rebroadcast will be available to listeners following the
call until 11:59 PM (ET) on February 19, 2009. To access the rebroadcast,
please call 416-640-1917 or 1-877-289-8525 and enter passcode 21293732
followed by the number sign.
About RuggedCom Inc.
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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 nine month periods ended December 31, 2007 and
December 31, 2008 can be found under the Company's profile at www.sedar.com.
They can also be found in the Investor Relations section of the Company's
website at www.RuggedCom.com."
