TeleCommunication Systems provides an earnings bright spot
Company's quarterly report bucks the downward trend of much of the market
- By Mark Hoover
- Oct 31, 2012
TeleCommunication Systems Inc.’s third quarter revenue has reached an unprecedented height for the company, showing that there are some bright spots amid all of the negative reports on company earnings.
- 2012 third quarter revenue was up 24 percent, at a record $140.1 million, a $28 million jump from 2011’s $112 million in the same quarter.
- 2012 net income was $4.2 million, 7 cents per diluted share, a rise from 2011’s $1.8 million, 3 cents per diluted share.
- 2012 third quarter adjusted net income was up 9 percent, at $7.3 million, 12 cents per diluted share, an increase over 2011’s $6.7 million, 11 cents per diluted share.
"The third quarter of 2012 marks the highest quarterly revenue and gross profit in our company's history," said Maurice B. Tose, the company’s chairman and CEO.
Tose attributed the company’s quarter results to its “TotalCom solutions for federal government customers,” and to its “commercial 9-1-1 services for network operators and state and local governments.”
The company’s government segment “generated strong sequential and year-over-year organic growth driven by continued demand for TCS' deployable secure communication systems, managed services and field support,” Tose said.
TeleCommunication Systems won a $2.6 billion custom SATCOM solutions contract or CS2,” which Tose said “will be the main contract vehicle for the [Defense Department] and federal civilian agencies to purchase commercial SATCOM solutions for the next several years.”
He expects the contract “to expand our access to business opportunities well-suited for our TotalCom wireless technology.”
Looking toward the future, the company is anticipating “award notices to participate in two more multi-billion dollar contract vehicles: the Army's GTACS and Homeland Security's Eagle II, late in the fourth quarter. These awards would enhance our visibility and prospects for 2013,” Tose said.
TeleCommunication Systems was ranked at No. 96 on 2012’s Top 100 list of federal prime contractors.
Mark Hoover is a senior staff writer with Washington Technology. You can contact him at email@example.com, or connect with him on Twitter at @mhooverWT.