Thursday,intelligence, surveillance and reconnaissance solutions provider Applied Signal Technology, Inc.(APSG) reported an increase in profit for the fourth quarter, resulting from a 12.1% growth in revenue, as well as improved margins.
Applied Signal's net income for the fourth quarter improved to $3.6 million from $2.5 million in the year-ago period. On a per share basis, earnings increased 35% to $0.28 from $0.20 in the same quarter last year.
On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude one-time items.
The Sunnyvale, California-based company's revenue for the fourth quarter rose 12.1% to $54.3 million from $48.4 million in the comparable quarter last year. Wall street analysts had a consensus estimate of $57.88 million for the quarter.
The company said it gained revenue from contracts of $53.2 million compared to $46.9 million in the year-ago period. However, revenue from royalties declined to $1.0 million from $1.4 million in the same quarter last year.
Operating margin increased to 10.9% from 9% in the prior year quarter, primarily due to heavier mix of fixed-price contracts, improved profitability on certain development contracts, and a reduction in stock-based compensation expense.
Operating income for the quarter was $5.9 million, 36% up from $4.3 million last year. Total operating expenses was $48.3 million, compared to $44.0 million in the same quarter last year.
Applied Signal received $69.5 million new orders for the fourth quarter, 74% higher than the $39.8 million orders last year.
For the full year, the company reported net income of $14.5 million or $0.11 per share, compared to $8.0 million or $0.63 per share last year. Revenue for the year improved to $202.6 million from $186.3 million a year ago.
APSG closed Thursday's regular trading at $20.92, down $0.13 or 0.62%, on the Nasdaq. In after hours, the stock gained 0.96% or $0.20, trading at $21.12.
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