Sutron Reports Third Quarter 2013 Results
(firmenpresse) - STERLING, VA -- (Marketwired) -- 11/15/13 -- Sutron Corporation (NASDAQ: STRN) today announced results for the third quarter and nine months ended September 30, 2013.
Revenue of $7.1 million, up 13% from previous quarter
Net Income of $486,975, up from a loss of ($53,170) from previous quarter
Record Revenue of $19.9 million, up 13% from prior year period
Net income of $464,007, down 52% from prior year period
Cash of $7.0 million, up 9% from prior year period
Sutron reported revenue of $7.1 million for the third quarter of 2013, up 13% from the second quarter of 2013, and up 1% from $7.0 million in the third quarter of 2012. Our MeteoStar division had a stronger third quarter of 2013 with $1.5 million in revenue compared to $1.2 million in revenue for the same quarter of 2012, a 31% increase, due primarily to large contract sales during the quarter. However, this was offset by Sutron's Integrated Services Division that realized $2.3 million of revenue for the third quarter of 2013, compared to $3.4 million in revenue for the third quarter of 2012, a 31% decrease, due primarily to project delays as a result of the United States Government shutdown as well as slower project sales internationally. The after tax net income for the third quarter of fiscal year 2013 was $486,975, compared to after tax net loss of ($53,170) for the second quarter of 2013 and income of $490,452 in the third quarter of fiscal year 2012. The reasons after tax net income has remained flat year over year in spite of increased revenues was due primarily to: 1) lower gross margin as a percentage of sales (40.4% for the third quarter of 2013 compared to 42.1% for the third quarter of 2012) due to a different product mix in 2013; and 2) increased selling and administrative costs associated with the addition of Sabio in 2013 and planned additions to our sales and administrative staff. These differences were tempered, in part, by lower research and development costs in the third quarter of 2013 compared to the third quarter of 2012. The decrease in research and development costs was due primarily to the deployment of MeteoStar engineers to increased project work compared to the third quarter of 2012. The Company reported a third quarter net income of $0.10 per basic and diluted share in 2013 equivalent to its earnings of $0.10 per basic share and diluted share in the third quarter of 2012.
For the first nine months of calendar year 2013, Sutron recorded record revenue of $19.9 million, a 13% increase compared to $17.6 million during the first nine months of 2012. Sutron reported an after tax net income of $464,007 for the first nine months of 2013, compared to $966,013 of net income for the same period of 2012. Similar to the quarterly results, the reasons after tax net income declined in spite of increased revenues was due primarily to: 1) lower gross margin as a percentage of sales (39.5% for the nine months ended September 30, 2013 compared to 40.7% for the nine months ended September 30, 2012) due to a different product mix; 2) increased selling and administrative costs associated with the addition of Sabio in 2013 and planned additions to our sales and administrative staff; and 3) planned increased research and development costs in MeteoStar and Sabio with respect to new products expected to launch in the near future. The first nine months net income results in earnings of $0.09 per basic and diluted share in 2013, compared to earnings of $0.20 per basic share and $0.19 per diluted share in the first nine months of 2012.
The Company's backlog as of September 30, 2013 was approximately $12.3 million, equivalent to the backlog as of September 30, 2012.
Sutron ended the third quarter of 2013 with $7.0 million in cash and cash equivalents, down from $8.4 million at December 31, 2012. The decrease through the first nine months of 2013 was primarily due to our Sabio acquisition. Cash generated by operating activities during the first nine months of 2013 was $116,201 as compared to cash generated by operating activities through the first nine months of 2012 of $819,015. Capital expenditures for the first nine months of 2013 were $199,072, compared to $94,359 for the first nine months of 2012. As a consequence, Free Cash Flow for the first nine months of 2013 was $(82,871) compared to Free Cash Flow of $724,656 for the first nine months of 2012. Sutron defines Free Cash Flow as net cash provided or used by operating activities less cash used in the purchase of property and equipment.
Raul McQuivey, Chairman and Chief Executive Office said, "We continue to be affected this year by a slowdown in international project tender activity as well as the delay or cancellation of some tenders prior to anticipated awards. Our third quarter results were also negatively impacted by the U.S. Government's shutdown which delayed some orders we were anticipating domestically. While our third quarter results were impacted by these developments, we are encouraged by our record first nine month's revenue of $19.9 million, supported by the contribution from our new acquisitions that offset declines in our legacy businesses, and our backlog of $12.3 million. Our cash balance remains strong at $7.0 million. We also continue to invest in new product development across Sutron and its new Sabio and MeteoStar divisions and, while this increases our expenses in the near term, we anticipate that these investments will contribute to increased profitability once these new products come to market."
Sutron Corporation, headquartered in Sterling, Virginia, is a project driven business. We provide hydrological, meteorological, oceanic and aviation real-time data collection products, systems, software and services to a diversified customer base of federal, state, local and foreign governments, engineering companies, universities, hydropower companies and other commercial entities. Our quarterly results may fluctuate substantially based upon contract awards that are difficult to project in terms of timing and may be delayed due to differing time frames in securing government approvals and funding.
The statements in this press release that relate to future plans, events or performance are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements include without limitation any statements regarding our expected future financial position, results of operations, cash flows, EBITDA, financing plans, business strategy, bookings, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "should" and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
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Datum: 15.11.2013 - 13:55 Uhr
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