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RuggedCom Inc. (RCM)
Market: CDN Consolidated
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Nov 23, 2014, 4:56 PM EST
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RuggedCom reports strong revenue and purchase order growth for Q1 fiscal 2012

(All dollar amounts are in US dollars)

Highlights from the Quarter:

  • 33% increase in Revenue year over year, to $26.6 million
  • 20% increase in Purchase Orders year over year, to $25.5 million
  • 30% increase in Gross Margin year over year
  • Added 105 new customers

CONCORD, ON, Aug. 10, 2011 /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 first quarter of fiscal 2012, ended June 30, 2011.

The Company adopted International Financial Reporting Standards ("IFRS") effective April 1, 2011. The accompanying consolidated interim financial statements represent the Company's first set of financial statements prepared in accordance with IFRS.

"The Company continues to experience strong revenue and order growth in spite of today's uncertain economic climate," said Marzio Pozzuoli, President and Chief Executive Officer. "The electric power and transportation markets continue to be the primary drivers of our growth, with transportation achieving a new record in revenues this quarter. The North America and Latin America regions both achieved record revenues in Q1-F12 to complement continued strong growth in the APAC and EMEA regions."

First Quarter Results

Total revenue for the quarter was $26.6 million, representing an increase of 33% from the comparable quarter a year ago.  Revenue was primarily driven by the electric power and transportation markets, which grew 28% and 45% respectively, over the same quarter last year.

The Company booked customer purchase orders totaling $25.5 million for the quarter, representing an increase of 20% over the same quarter last year.

Gross margin for the quarter was $15.3 million, an increase of 30% over the comparable period last year.  On a percentage of revenue basis, first quarter gross margin was 57.5%, a decrease of 1.2 percentage points over a gross margin of 58.7% for the same period last year.  The decrease in gross margin percentage was due to an unfavourable combination of product, sector and geographic mix.

First quarter net income was $1.3 million, compared to a loss of $0.8 million in the comparable period a year ago.  Operating expenses declined to 47.7% of revenues compared with 57.1% for the same period a year ago. The significant drop is due to the Company's conversion to a US dollar functional currency as a result of implementing IFRS beginning with this reporting period and the effect this had on the recalculation of operating expenses for the year ago period.  The adoption of a US dollar functional currency created a foreign exchange loss of approximately $1.6 million for Q1-F11 due to the foreign exchange effect on the Company's significant Canadian dollar denominated cash balances at that time.  For Q1-F12, in order to minimize the foreign exchange effect on the Company's cash balances, the Company converted much of its Canadian dollars to US dollars at the beginning of Q1-F12. The Company recorded a nominal foreign exchange gain in Q1-F12.

The Company also recorded a provision for income taxes of $1.1 million for Q1-F12.  This compares to $1.2 million income tax expense in the same period last year. Q1-F11 experienced a large effective tax rate mainly due to the large foreign exchange loss explained above, as well as the inclusion of pre-tax losses from WiNetworks, both of which are not tax effected.

First quarter basic earnings per share were $0.10 compared to ($0.06) for the same quarter last year while fully diluted earnings per share were $0.10 compared to ($0.06) for the same quarter last year.

The Company added 105 new customers in the quarter.

Conference Call and Webcast
Management will host a conference call at 8:30 a.m. (ET) on Thursday, August 11, 2011.  Listeners may attend the conference call by dialing 647-427-7450 or 1-888-231-8191. 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 August 19, 2011. To access the rebroadcast, please call 416-849-0833 or 1-800-642-1687 and enter passcode 82332260#.

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 periods ended June 30, 2011 and June 30, 2010 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.

RuggedCom Inc.


First Quarter 2012 Consolidated Interim Financial Statements and Results of Operations
(Unaudited)

RuggedCom Inc.
Consolidated Interim Balance Sheets
(In thousands of US dollars)
(Unaudited)

                   
  June 30
2011
$
      March 31
2011
$
      April 1
2010
$
Assets                  
Current assets                  
Cash and cash equivalents (note 6) 36,269       38,106       33,145
Trade receivables (note 7) 18,704       18,265       13,494
Inventories (note 8) 16,770       14,509       10,301
Prepaid expenses 3,679       2,184       1,825
Income taxes recoverable -       -       1,043
  75,422       73,064       59,808
Non-current assets                  
Prepaid expenses 848       272       520
Deferred income taxes 718       676       1,197
Property and equipment (note 9(a)) 10,657       10,299       10,952
Intangible assets (note 9(b)) 9,965       10,311       10,836
Goodwill 3,133       3,133       1,640
  25,321       24,691       25,145
Total assets 100,743       97,755       84,953
Liabilities                  
Current liabilities                  
Trade and other payables (note 10) 8,720       7,835       7,494
Income taxes payable 349       1,299       280
Provisions (note 11) 1,082       921       719
Other liabilities (note 12) 271       351       316
Total current liabilities 10,422       10,406       8,809
Non-current liabilities                  
Provisions (note 11) 702       697       678
Other liabilities (note 12) 4,002       3,221       2,775
Total non-current liabilities 4,704       3,918       3,453
Total liabilities 15,126       14,324       12,262
Equity                  
Share capital 50,427       49,574       48,963
Contributed surplus 5,209       5,147       3,695
Retained earnings 29,981       28,710       20,033
Total equity 85,617       83,431       72,691
Total liabilities and equity 100,743       97,755       84,953
                   
Contingencies and guarantees (note 15)                          
Peter Crombie - Director         J. Ian Giffen - Director                  

The accompanying notes form an integral part of these consolidated interim financial statements.

RuggedCom Inc.
Consolidated Interim Statements of Operations and Comprehensive Income (Loss)
(In thousands of US dollars, except share and per share amounts)
(Unaudited)

     
  Three months ended
  June 30
2011
June 30
2010
  $ $
   
Revenues 26,562 19,990
Cost of sales 11,291 8,252
Gross profit 15,271 11,738
     
Operating expenses    
Sales and marketing 5,888 4,312
Research and product development 3,647 2,904
General and administrative 3,141 4,204
  12,676 11,420
Income from operations 2,595 318
     
Finance income (expenses), net    
Interest income 36 39
Interest expense (24) (26)
Other finance income (expenses) (215) 95
Finance income (expenses), net (203) 108
     
Income before income taxes 2,392 426
Income tax expense 1,121 1,181
Net income (loss) and comprehensive income (loss)
for the period
1,271 (755)
     
     
Income per common share (note 16)    
Basic $0.10 $(0.06)
Diluted $0.10 $(0.06)
     
Weighted average number of common shares outstanding (note 16)    

The accompanying notes form an integral part of these consolidated interim financial statements.

RuggedCom Inc.
Consolidated Interim Statements of Changes in Equity
(In thousands of US dollars, except share and per share amounts)
(Unaudited)

                           
        Share capital   Contributed     Retained    
        Number   Amount   surplus     earnings   Total equity

          $   $     $   $
Balance at April 1, 2010       12,144,458   48,963   3,695     20,033   72,691
Comprehensive loss for the period       -   -   -     (755)   (755)
Employee stock options:                          
  Value of services recognized                    -   32   (32)     -   -
  Proceeds from issuing common shares       12,480   57   -     -   57
  Expense for the period       -   -   445     -   445
Balance at June 30, 2010       12,156,938   49,052   4,108     19,278   72,438
                           
Balance at April 1, 2011       12,241,495   49,574   5,147     28,710   83,431
Comprehensive income for the period                     1,271   1,271
Employee stock options:                           
  Value of services recognized           284   (284)         -
  Proceeds from issuing common shares       128,140   569             569
  Expense for the period               346         346
Balance at June 30, 2011       12,369,635   50,427   5,209     29,981   85,617

The accompanying notes form an integral part of these consolidated interim financial statements.

RuggedCom Inc.
Consolidated Interim Statements of Cash Flows
(In thousands of US dollars)
(Unaudited)

               
            Three months ended
            June 30
2011
$
June 30
2010
$
Cash and cash equivalents provided by (used in)              
Operating activities              
Net income (loss) for the period           1,271 (755)
Items not affecting cash              
 Amortization and depreciation           1,298 1,206
 Unrealized finance (gain) loss            215 (95)
 Stock-based compensation           346 445
 Deferred income tax expense           (42) 242
Net change in non-cash working capital (note 18(a))           (4,114) (334)
 Cash provided by (used in) operating activities           (1,026) 709
               
Investing activities              
Purchase of property and equipment           (1,068) (832)
Proceeds from disposal of property and equipment           - 23
Purchase of intangibles           (312) (224)
    Cash used in investing activities           (1,380) (1,033)
               
Financing activities              
Common shares issued for options exercised           569 57
    Cash provided by financing activities           569 57
               
Decrease in cash and cash equivalents during the period           (1,837) (267)
               
Cash and cash equivalents - Beginning of period           38,106 33,145
Cash and cash equivalents - End of period           36,269 32,878
               
Supplemental disclosure (note 18(b))              

The accompanying notes form an integral part of these consolidated interim financial statements.

 

 

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