TeleCommunication Systems, Inc. (NASD: TSYS) (TCS) reported record numbers for the first quarter of 2008. Revenue increased significantly by 18%, from $34.1 million in the first quarter of 2007 to $40.4 million. At the end of the previous quarter ending December 31, 2007, revenue was $37.1 million.
Earnings before interest, taxes, depreciation and amortization, and noncash stock compensation (EBITDA) reported another record at $8.4 million, or $0.20 per basic and $0.19 per diluted share. This is a 45% increase from the previous quarters figures, and a 79% increase from a year ago.
Maurice B. Tose, TCS Chairman, CEO, and President commented, “The quarter’s results affirm favorable profit contribution trends from commercial segment text messaging technology, location based services for public safety, and from the government segment. The robust growth in the use of SMS text messaging drove carrier customers to purchase licenses for additional capacity during the quarter, including the equivalent of more than two quarters’ worth of a six-quarter arrangement begun in Q3 2007. Continuing increases in SMS usage indicate that $7.5 million of license sales previously slated for the second half of 2008 will more likely occur in the second and third quarters.
“Government segment profitability improved on a modest increase in year-over-year volume, with significantly higher volume now expected in the remaining 2008 quarters, as some shipments previously planned for Q1 will occur in Q2 and subsequent. Overall, our company franchises in premium wireless carrier services and secure deployable communication systems for government produced a strong start for the year and positions TCS for a solid, multi-year run,” he continued.
TeleCommunication Systems, Inc. focuses on text messaging and location-based services, which includes enhanced 9-1-1 for wireless carriers and voice over Internet protocol (VoIP) service providers, and secure satellite-based communication solutions for government customers. They engage in the development and application of wireless data communications technology in the U.S. and internationally.
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