Globecomm Profit Quadruples on Gov Contracts, Acquisitions

Hauppauge-based satellite communications company Globecomm Systems said its fourth-quarter profit quadrupled on a jump in government contracts and revenue from two communication companies: Telaurus and C2C/Evocomm.

For the quarter ended June 30, Globecomm posted a profit of $4 million, or 19 cents a share, compared to $1 million, or 5 cents a share, in the prior-year period.

Revenue for the quarter was $70.3 million, up 43 percent from $49.2 in the year-ago quarter.

In total, the Telaurus and C2C/Evocomm divisions added $7.8 million to the company's balance sheet.

Globecomm, one of the largest public companies on Long Island, also released its fiscal 2010 results, highlighted by more than double the profit or the prior year.

Profit for the fiscal year jumped to to $7.9 million, or 38 cents per share, compared to $3.3 million, or 16 cents per share, in fiscal 2009.

Revenue also increased to $227.8 million, up 34 percent compared to $170.2 million one year earlier.

Government contracts also lifted the company's bottom line, including in vestment in 3G wireless infrastructure for under-serviced area of the world and a $34.2 million increase in an existing government contract.

David Hershberg, the company's chief executive, in a statement lauded the company's acquisitions and said Globecomm would continue to look for companies to buy.

"The Company will also make strategic investments internally to expand our products portfolio and capabilities for all market verticals. Our overall staff has increased by roughly 20% to over 400 employees and we are pleased with the seamless integration of our new subsidiaries," he said.

View Globecomm's complete earnings release here.