Telecomsys (NASDAQ:TSYS) reported another quarter of solid results for June 2015. Revenue was up 7% sequentially and 2% Y/Y, though about 2% below analyst consensus.
NonGAAP earnings, GAAP earnings and adjusted EBITDA were all better than expected. Earnings beat was $0.02 versus consensus expectations of $0.03.
Company guidance for CY 2015 was reconfirmed aside from a small increase in expected net income.
The transcript from the earnings conference call was published with numerous transcription errors. My edited version can be found here.
Highlights from the conference call:
- The company is close to announcing several government awards with an aggregate value in excess of $150 million. These awards are expected to be split between systems (recognized over the next 12 months) and services (recognized over 3-5 years).
- Tropo system sales have been delayed and are now expected to roll into 2016 for larger deliveries.
- SNAP and SNAP reset orders were better than expectations offsetting the delay in Tropo deliveries.
- The initial domestic order supporting FirstNet implementation was received for connected law enforcement.
- The company expects to showcase a new Indoor Location engine and National Emergency Address Database (NEAD) developed with Cisco (NASDAQ:CSCO) at the August APCO trade show.
- TCS is also collaborating with Cisco on several new products for the IoE.
- Several VirtuMedix customer implementations occurred during the quarter including the first international order. The pipeline was described as "healthy"
- Several ESInet orders were received subsequent to quarter end.
- There was no update on the Board committee looking at strategic alternatives to enhance shareholder value.
Guage on next twelve months predictability:
- Backlog expected to be recognized per company $183m or 44% is at the low end of historical trends.
- Deferred revenue per balance sheet is $23.8m up $2m sequentially. Represents 6% of NTM estimates which is within normal trends.
- Company mentioned orders expected in short order totaling >$150m of which roughly 50-60% would be recognized in the next twelve months. Including these orders would put the company is a higher safety level than normal. Meeting or exceeding forecasts looking forward appears to depend upon these orders.
Disclosure: I am/we are long TSYS.