Government Sales Drive Globecomm Growth
Globecomm Systems Inc. [GCOM] reported a 61.5-percent increase in its year-end FY04 (ended June 30) revenues to $87.2 million from $54 million earned in the same period a year ago. The company attributed the spike to increased infrastructure sales activity in the government marketplace. Globecomm’s net loss for FY04 decreased 93.2 percent to $1.3 million, compared with a net loss of $19.6 million in FY03. This decrease was attributed to increased revenues and an improvement in overall gross margins.
In other Globecomm news, the company won a second contract from the Ministry of Communication of the Islamic Transitional State of Afghanistan, valued at $14.2 million. This second deal has Globecomm designing, delivering, installing and maintaining a second satellite-based communications network, bringing telecom services to 337 districts within Afghanistan.