Integral Systems posts robust fiscal Q1
Provider of satellite ground systems Integral Systems, Inc. (Nasdaq: ISYS) reported robust financial results for the first quarter of fiscal 2008, helped by two positive one-time gains and increases in the company’s operating segments. The company also raised earnings guidance for the fiscal year.
For the three months ended Dec. 31, 2007, the Lanham, Md.-based small cap reported revenue for the quarter rose 36% to $37.3 million from $27.4 million booked in the first quarter of fiscal 2007. No analyst estimates were available.
Net income was $7 million, or $0.75 per diluted share, compared with $2.1 million, or $0.19 per diluted share, for the first quarter of fiscal 2007.
The first-quarter results were significantly impacted by two large non-routine transactions, including proceeds from an earlier-than-anticipated delivery of licenses under its GPS OCX contract and a $1.6 million tax credit for tax deductible research and development expenditures incurred in prior years.
Excluding the impact of these, the company would have recorded earnings per share of $0.42 for the quarter.
Outside of the one-time gains, Integral Systems experienced an increase in all of its operating segments. Its government ground systems segment revenue grew 11%, excluding the acceleration of the GPS OCX license revenue, over the same period last year and 27% in total. The commercial ground systems segment revenue grew 27% in fiscal 2008, primarily attributed to increased shipments to customers from the company's SAT subsidiary and new work awarded in 2007.
The space communication systems segment revenue grew 35% in fiscal 2008 due to new RT Logic contracts and higher product shipments from the Lumistar subsidiary.
Guiding ahead, Integral System’s management said, operating income is expected to be slightly higher in 2008 than initial guidance, due to higher demand for products and services (particularly with the Air Force and national programs), partially offset by higher costs for investments in R&D efforts and infrastructure developments.
Income tax expense is expected to be significantly lower in 2008 on a percentage basis due to recovery of R&D tax credits from prior years.
As a result of these factors, earnings are now expected to be in the range of $1.48 to $1.50 per share for fiscal 2008, compared with original earnings guidance of $1.38 to $1.40 per share.
Shares of Integral Systems (ISYS) rose $0.17, or 0.67%, to $25.52 at 10:40 a.m. ET. Shares of Integral Systems have been trading in the range of $20.84 to $28 for the past 52 weeks.
