Globecomm shares plunge on economic concerns
HAUPPAUGE, N.Y. (AP) — Globecomm Systems Inc.'s shares plunged in after-hours trading Tuesday after the satellite communications company said that the tough economy and limited military spending are posing a challenge for its business.
The company, based in Hauppauge, N.Y., earned $7.1 million, or 31 cents per share, for its fiscal fourth quarter that ended June 30. That's compared with $2.2 million, or 10 cents per share, for the same quarter last year. Excluding some one-time charges, its profit fell to 13 cents per share versus 20 cents per share last year.
Globecomm's total revenue increased nearly 19 percent to $104.8 million from $88.3 million.
The company said that gains in its infrastructure-solutions business offset a decline in its service business, which has been hurt by the reduction of troops in conflicts in Iraq and Afghanistan.
"Despite a challenging economic backdrop that continues to provide head winds for the company's infrastructure segment, Globecomm is proud to have completed yet another year of record revenues," CEO David Hershberg said. "Due to the uncertainty surrounding the U.S. government's budget environment, including the reduced Afghanistan commitment, fiscal 2013 will be a challenge to improve on the excellent results of fiscal 2012."
Globecomm earned $28.6 million, or $1.26 per share, for its full fiscal year. That's compared with $9 million, or 41 cents per share, in the prior year. The company earned 74 cents per share on an adjusted basis, as it got a boost from its April 2011 acquisition of ComSource, versus 64 cents in the prior year.
Annual revenue increased 39 percent to $381.9 million from $274.2 million.
Globecomm said it expects to earn between 66 and 76 cents per share for its 2013 fiscal year on revenue between $340 million and $360 million.
Its shares plunged 21 percent in after-hours trading to $10.49 following the release of its earnings report. They had ended the regular session up 6 percent to at $13.30.