Product category:
Wireless Communications
News Release from: Hemisphere GPS
Edited by the Electronicstalk Editorial
Team on 24 October 2002
CSI Wireless grows in traditionally weak
quarter
CSI Wireless has reported its financial results for the third quarter and the nine months ended 30th September 2002.
CSI Wireless has reported its financial results for the third quarter and the nine months ended 30th September 2002 For the three months ended 30th September 2002, CSI reported a 30% increase in revenues to $8,784,000, as compared with revenues of $6,761,000 for the same period last year
This article was originally published on Electronicstalk on 12 Feb 2002 at 8.00am (UK)
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Sales of the new Motorola-branded fixed wireless product account for the increase in revenues.
Total expenses (before investment in R and D) for the third quarter of 2002 were $2,778,000, as compared with $2,563,000 for the third quarter of 2001, calculated prior to goodwill amortization.
CSI Wireless reported negative EBITDA of $2,260,000 for the three months ended 30th September 2002, as compared with negative EBITDA of $2,656,000 for the same period in 2001.
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The company reported a net loss for the quarter of $2,716,000, or ($0.14) per share as compared with a net loss, before amortisation of goodwill, of $3,212,000, or ($0.18) per share in the third quarter of 2001.
In recent years, the third quarter has been the weakest quarter of the year as the result of a slow period for sales to the agricultural market, which makes up a large portion of the Company's overall GPS revenues.
CSI is a leading supplier to the precision guidance market for agriculture.
"The precision agriculture market remains an important part of our growth and I am pleased to say that we are leading several segments of this market", said Stephen Verhoeff, President and CEO of CSI Wireless.
"Subsequent to the close of the third quarter we received a $6 million dollar purchase order from RHS, our distribution partner for our Outback products.
The business with RHS, which was approximately $10 million last year is strengthening and the $6 million purchase order is for 2003 demand that is already anticipated".
RHS and CSI Wireless are beginning to see results of the efforts to bring on southern hemisphere business in South America and Australia.
These new regions are expected to help eliminate the seasonal-low business in the third quarter in future years.
CSI Wireless achieved record revenues for the nine months ended 30th September 2002 of $33,503,000, as compared with revenues of $30,934,000 for the same period in 2001.
The company also posted record gross margins for the nine month period of $12,495,000, an increase of 14% over $10,934,000 for the same period last year.
Improving margins are largely due to the positive contributions from the wireless business unit, including non-recurring engineering fees and royalties earned by the company.
CSI Wireless reported negative EBITDA of $692,000 for the nine months ended 30th September 2002, as compared with negative EBITDA of $2,589,000 in 2001.
After depreciation and amortisation, the company reported a net loss for the nine months of $2,244,000, or ($0.12) per share, as compared with a net loss (prior to goodwill amortisation) of $4,272,000, or ($0.25) per share reported for the same period last year.
Improvements in the bottom-line numbers were primarily the result of the increased margins in the wireless business unit.
"Our twin themes for 2002 continue to be the rolling out of new products and the pursuit of profitability", says Verhoeff.
"We have introduced 10 new products since December 2001 and have six more to introduce in the next two quarters".
During the third quarter, CSI Wireless finalised performance testing of its new fixed wireless telephone with Brightstar Corporation and Motorola and subsequently received an initial purchase order for more than $20 million, for delivery over a five-month period.
Brightstar is distributing CSI's telephone, which carries the Motorola brand name, throughout Latin America.
Brightstar is also distributing a similar CSI product for the North American market called BaseOne.
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