Tuesday, intelligence, surveillance and reconnaissance solutions company Applied Signal Technology, Inc. (APSG) reported higher net income for its third quarter, helped by a reduction in stock-based compensation expense and an improved mix of royalty revenue and fixed-price contracts, though revenue declined marginally. The company separately announced the acquisition of Pyxis Engineering.
The Sunnyvale, California-based company reported net income for the third quarter of $3.33 million or $0.25 per share, compared to $1.97 million or $0.15 per share in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.26 per share, for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter decreased to $49.50 million from $49.95 million in the prior-year quarter. Eight analysts had a revenue consensus of $53.61 million for the third quarter.
The company's operating income for the quarter increased 51% to $4.84 million from $3.22 millionin the third quarter 2008, primarily driven by a reduction in stock-based compensation expense and an improved mix of royalty revenue and fixed-price contracts, including product sales.
Total operating expenses for the quarter eased to $44.66 million from $46.73 million in the third quarter of last year.
New orders received during the third quarter of fiscal 2009 totaled $51.24 million, compared to new orders of $70.28 million during the third quarter of fiscal year 2008. The company noted that the year-over-year reduction in new orders was due to the timing of certain material contract awards.
The company also said that since the close of the third quarter, it has received 7 separate ISR program awards with a total value of $44 million. Initial letter contracts granted under these awards are about $16 million and the company expects to definitize these contracts by the end of the fiscal year.
For the nine-month period, the company's net income was $10.92 million or $0.83 per share, compared to $5.47 million or $0.43 per share last year.
The company's total revenues for the nine-month period increased to $148.38 million from $137.96 million a year ago.
In a separate release, the company announced that it has completed the acquisition of Pyxis Engineering, which will provide immediate scale into cyber-related projects and their associated revenue streams. Applied Signal has agreed to acquire Pyxis Engineering for $16.25 million in cash, funded from current investments, with a stock-based earn-out potential of $3.75 million.
For the fiscal year ended December 31, 2008, Pyxis recognized revenues of about $11.7 million. For the period January 1, 2009 through May 31, 2009, Pyxis recognized revenues of around $6.3 million. The unaudited trailing twelve months revenues ended July 31, 2009 are estimated at approximately $14 million. The acquisition is anticipated to be accretive in its first twelve months of operation.
APSG closed Tuesday's regular trading session at $26.22, up $0.64 or 2.50% on a volume of 463,971 shares. However, the stock lost $2.57 or 9.80%, and traded at $23.65 in the after hours.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.