TODAY'S PAPER
25° Good Morning
25° Good Morning
Business

Globecomm reports low quarterly profit, revenue

Globecomm Systems Inc., a satellite communication device manufacturer in Hauppauge that is set to be sold to a private equity company, reported lower quarterly revenue and profit Friday due to a government contract that boosted figures in the 2012 period.

Revenue at Globecomm for the three months ending June 30 was $80.6 million, a 23.1 percent drop from a year earlier. Profit also fell 35.7 percent to $4.6 million, or 20 cents per share, for the quarter.

The figures were roughly in line with expectations from analysts polled by Bloomberg. The stock fell three cents to $13.90 per share in after-hours trading Friday following the news.

Last month, Manhattan-based private equity firm Wasserstein & Co. agreed to purchase Globecomm for $340 million -- or $14.15 per share. The deal is expected to close in December.

When the sale was announced, Globecomm chairman and chief executive David Hershberg said, "We believe that this transaction is in the best interest of our shareholders, customers, partners and employees."

Globecomm said in a news release that the proceeds from a major government program had buffered its sales in the quarter ending June 2012. Earnings fell a year later without that program. Globecomm derives about 20 percent of its revenues from the U.S. Army, and had attributed lower sales in previous quarters to cuts in government spending and the withdrawal of U.S. troops from the Middle East.

Due to the impending sale, the company did not hold a conference call for its earnings.

Globecomm, which has a stock market value of around $329.5 million, employs about 263 employees on Long Island.

Comments

We're revamping our Comments section. Learn more and share your input.

More news