Hemisphere Reports 1st Qtr Results
For the quarter ended March 31, 2012, Hemisphere GPS reported revenues of $22.6 million, a 7% increase from revenues of $21.2 million reported for the first quarter of 2011. Revenue from the company’s agriculture business increased 9% for the quarter, while revenue from its precision products business was lower by 3%.
“North American sales from the company’s largest sales regions (Canada and the U.S.) were up by 31% and 12% respectively year-over-year, or 16% combined,” said Steven Koles, President and CEO of Hemisphere GPS. “Strong North American markets are important to our overall sales due to their relative weighting to our overall revenues. North American results were indeed quite strong early in the first quarter, but mitigated in March as warm weather resulted in early planting activity, particularly in the U.S. corn belt.”
Revenue from the recent AgJunction acquisition contributed modestly to revenue growth in the quarter. Because the related software licensing revenues are initially recorded as deferred revenue and are amortized into revenue over the software license period, the impact on revenue will increase over time and accelerate in the last half of the year. Agriculture segment revenues contributed 84% of total first quarter revenues.
International revenues were down by 12% compared to the first quarter of 2011. Continued uncertain economic circumstances in Europe, weather in certain parts of South America, and a strong quarter for international sales in 2011 contributed to this year-over-year decline.
Gross margin for the first quarter was 47.5% compared to 48.2% in the first quarter of 2011, with the year-over-year difference related to changes in the value of the Canadian dollar. Hemisphere GPS earned net profit of $1.4 million in the first quarter of 2012 compared to net profit of $1.8 million in the first quarter of 2011.
At March 31, 2012, the company held cash of $6.9 million, compared to $6.7 million at December 31, 2011.
Hemisphere GPS, member since 2004; hemispheregps.com.