(All dollar amounts are in US dollars)
Highlights for the Full Fiscal Year:
- 46% increase in Purchase Orders over prior year
- 54% increase in Revenues over prior year
- 68% increase in Gross Margin dollars over prior year
- 154% increase in Net Income over prior year
- Added 393 new customers during the fiscal year
Highlights from the Quarter:
- 23% increase in Purchase Orders year over year
- 52% increase in Revenues year over year
- 50% increase in Gross Margin year over year
- 49% increase in Net Income year over year
- Added 105 new customers during the quarterWOODBRIDGE, ON, May 20 /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 fourth quarter and full fiscal year ended March 31,
2009.
"We are pleased to complete our latest fiscal year with another solid
financial performance which included our 19th consecutive record quarterly
increase in revenues. This latest quarter demonstrates the Company's ability
to deliver both top line and bottom line growth in a challenging economic
environment." said Marzio Pozzuoli, President and Chief Executive Officer.
Fourth Quarter and Full Year Results
Total revenue for the quarter was $17.4 million, representing the
Company's 19th consecutive record quarter. Revenue increased 52% from the
comparable quarter of a year ago. Revenue growth was primarily driven by
increased sales in the electric power market, which comprised 63% of the
Company's total revenue, and which grew 43% over the same quarter last year.
For the full year, revenue reached $60.4 million, an increase of 54% over
fiscal 2008.
Customer purchase orders totaled $16.5 million for the quarter, the 2nd
highest in Company history, representing an increase of 23% over the same
quarter last year. During the quarter the Company received a record purchase
order totaling over $US 2 million from a major U.S. utility for RuggedCom's
RuggedSwitch(R) and RuggedRouter(R) family of products for use in substation
automation and Smart Grid applications. The utility was also a new customer
for RuggedCom, one of 105 new customers for the quarter.
For the full year, the Company booked $61.8 million in orders, a 46%
increase over the $42.4 million booked in fiscal 2008.
Gross margin for the quarter was $11.0 million, an increase of 50% over
the comparable period last year. On a percentage basis, fourth quarter gross
margin was 63.4% compared to 64.4% for the same period last year.
Gross margins were $38.1 million for the full year, a 68% increase over
the comparable period last year. On a percentage basis, fiscal 2009 gross
margin was 63.1%, 5.1 points higher than the 58.0% recorded for fiscal 2008.
Favourable product and customer mix on top of continuing product cost
improvements contributed to this increase.
Fourth quarter net income was $3.4 million, representing the Company's
16th consecutive quarter of profitability. This represents a 49% increase over
net income of $2.3 million in the fourth quarter last year. The increase was
mainly due to the Company's continuing growth in revenues. In addition, the
Company recorded $0.1 million of net interest income for the quarter compared
to $0.5 million in the same quarter last year. The Company also recorded a
provision for income taxes of $1.9 million with an effective tax rate of
35.4%, which compares to 32.8% for the same period a year ago.
For the full year, net income was $12.3 million, an increase of 154% over
fiscal 2008 net income of $4.9 million. The Company recorded a provision for
income taxes of $6.4 million for fiscal year 2009 which equates to an
effective rate of 34.1%, which compares to 37.9% for fiscal year 2008.
Fourth quarter earnings per basic share were $0.29 compared to $0.20 for
the same quarter last year while earnings per diluted share were $0.28
compared to $0.19 for the same quarter last year. Earnings per basic share for
the full year were $1.05 compared to $0.48 for the last fiscal year while
earnings per diluted share were $1.00 compared to $0.46 for the last fiscal
year.
The Company added 105 new customers in the quarter, an increase of 24%
over the same quarter last year; 393 new customers were added during fiscal
2009, an increase of 19% over fiscal 2008.Conference Call and Webcast
---------------------------
Management will host a conference call at 8:30 a.m. (ET) on Thursday, May
21, 2009. Listeners may attend the conference call by dialing 416-644-3423 or
1-800-732-9307. 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 May 28, 2009. To access the rebroadcast, please call 416-640-1917 or
1-877-289-8525 and enter passcode 21304339 followed by the number sign.
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 audited annual consolidated financial statements for the fiscal years
ended March 31, 2008 and March 31, 2009 and management's discussion and
analysis of the results of operations and financial condition for the three
month and full year periods ended March 31, 2008 and March 31, 2009 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.
CONSOLIDATED FINANCIAL STATEMENTS
Year ended March 31, 2009
RuggedCom Inc.
CONSOLIDATED BALANCE SHEETS
As at March 31, 2009 and 2008
(in thousands of United States dollars)
2009 2008
$ $
- -
Assets
Current
Cash and cash equivalents (note 4) 45,099 8,037
Short-term investments (note 5) - 34,194
Accounts receivable (note 6) 9,780 6,602
Prepaid expenses and other (note 7) 1,025 2,188
Inventories (note 8) 4,555 3,446
Income taxes recoverable - 166
Future income taxes (note 14(a)) 283 579
--------------------------
60,742 55,212
Future income taxes (note 14(a)) 246 737
Property and equipment (note 9) 2,929 2,022
Other assets (note 10) 313 239
--------------------------
64,230 58,210
--------------------------
--------------------------
Liabilities
Current
Accounts payable and accrued liabilities 5,793 4,196
Current portion of warranty liability 482 569
Income taxes payable 2,268 -
Current portion of deferred income 50 -
Current portion of obligations under capital
leases (note 16(b)) 126 269
--------------------------
8,719 5,034
Warranty liability 347 504
Deferred income 21 -
Obligations under capital leases (note 16(b)) 48 213
Leasehold inducements 6 39
--------------------------
9,141 5,790
--------------------------
Shareholders' Equity
Capital stock (note 11) 46,820 46,384
Contributed surplus (note 13) 1,559 684
Accumulated other comprehensive income
(loss) (note 12) (8,952) 2,018
Retained earnings 15,662 3,334
--------------------------
6,710 5,352
--------------------------
55,089 52,420
--------------------------
64,230 58,210
--------------------------
--------------------------
Commitments (note 16)
Contingent liabilities (note 17)
See accompanying notes to consolidated financial statements.
Approved by the Board of Directors
"Peter Crombie" "J. Ian Giffen"
---------------------------- ----------------------------
Peter Crombie, Director J. Ian Giffen, Director
RuggedCom Inc.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (DEFICIT)
For the years ended March 31, 2009 and 2008
(in thousands of United States dollars except per share information)
2009 2008
$ $
- -
Revenue 60,373 39,179
Cost of goods sold 22,268 16,468
--------------------------
Gross margin 38,105 22,711
--------------------------
Operating expenses
Research and development - net of scientific
research and experimental development tax
credits of $1,048 (2008 - $722) 3,919 2,924
Sales and marketing 10,765 7,611
General and administrative 5,561 4,664
Foreign currency loss (gain) (742) 85
Amortization 1,166 823
--------------------------
20,669 16,107
--------------------------
Operating income 17,436 6,604
Net interest income 1,273 1,234
--------------------------
Earnings before income taxes 18,709 7,838
--------------------------
Provision for income taxes (note 14(b))
Current 5,827 2,785
Future 554 189
--------------------------
6,381 2,974
--------------------------
Net earnings for the year 12,328 4,864
Retained earnings (deficit) - Beginning of year 3,334 (1,530)
--------------------------
Retained earnings - End of year 15,662 3,334
--------------------------
--------------------------
Net earnings per common share (note 18)
Basic $ 1.05 $ 0.48
Diluted $ 1.00 $ 0.46
Basic weighted average number of common shares 11,771,439 10,127,253
Diluted weighted average number of common
shares 12,326,514 10,935,387
See accompanying notes to consolidated financial statements.
RuggedCom Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the years ended March 31, 2009 and 2008
(in thousands of United States dollars)
2009 2008
$ $
- -
Net earnings for the year 12,328 4,864
Unrealized foreign currency translation gain
(loss) (note 12) (10,970) 2,072
--------------------------
Comprehensive income for the year 1,358 6,936
--------------------------
--------------------------
See accompanying notes to consolidated financial statements.
RuggedCom Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended March 31, 2009 and 2008
(in thousands of United States dollars)
2009 2008
$ $
- -
Cash provided by (used in)
Operating activities
Net earnings for the year 12,328 4,864
Non-cash items
Amortization of property and equipment 1,097 746
Amortization of other assets 69 77
Gain on disposal of property and equipment - (19)
Future income taxes 554 189
Accretion and cumulative dividends on
preferred shares - 148
Stock-based compensation 1,082 432
Warranty liability (8) 185
Leasehold inducements (29) 4
Net change in non-cash working
capital (note 15(a)) (574) (4,442)
--------------------------
14,519 2,184
--------------------------
Investing activities
Disposal of (additions to) short-term
investments 34,787 (33,361)
Proceeds from disposal of property and
equipment - 40
Additions to property and equipment (2,486) (959)
Additions to other assets (203) (145)
--------------------------
32,098 (34,425)
--------------------------
Financing activities
Repayment of obligations under capital leases (247) (253)
Issuance of common shares 228 39,965
Effect of exchange rates on preferred shares - 335
Share issuance costs - (3,802)
--------------------------
(19) 36,245
--------------------------
Effect of foreign currency exchange rates on
cash and cash equivalents (9,536) 717
--------------------------
Increase in cash and cash equivalents during
the year 37,062 4,721
Cash and cash equivalents - Beginning of year 8,037 3,316
--------------------------
Cash and cash equivalents - End of year
(note 15(b)) 45,099 8,037
--------------------------
--------------------------
See accompanying notes to consolidated financial statements.
For further information: Roy Dalton, Chief Financial Officer, RuggedCom
Inc., Tel: (905) 856-5288, Email: Investor@RuggedCom.com
