Refines Expectations for 2013 Fiscal Year Financial Results
Globecomm Systems Inc. (NASDAQ: GCOM),
a leading communications solutions provider, today announced that it has
retained Needham & Company to act as its financial advisor to review
potential strategic alternatives to enhance shareholder value. There can
be no assurance that this process will result in any transaction or any
change in the Company's overall structure or business model.
In connection with the Company's normal quarterly review process, the
Company has refined certain of its expectations regarding its financial
results for the fiscal year ending June 30, 2013. Its refined
Consolidated revenues to be between $320 and $340 million compared to
the prior expectations of between $340 and $360 million.
Services segment revenues to be between $200 and $210 million,
unchanged from prior expectations.
GAAP diluted net income per common share to be between $0.66 and $0.71
compared to the prior expectations of between $0.66 and $0.76.
Adjusted EBITDA to be between $40 and $42 million compared to the
prior expectations of between $40 and $44 million.
The Company expects to release its financial results for the fiscal 2013
second quarter and the six months ended December 31, 2012 after the
market close on Wednesday, February 6, 2013.
Adjusted EBITDA is a non-GAAP measure which represents net income before
interest income, interest expense, provision for income taxes,
depreciation, amortization expense, non-cash stock compensation expense
and earn-out fair value adjustments. Globecomm believes this provides
greater transparency by helping illustrate comparability between current
and prior periods. Under an accounting pronouncement on business
combinations, changes to the fair value of earn-out payments must be
recognized in earnings. Therefore, the exclusion of the earn-out fair
value adjustments in the adjusted EBITDA calculation provides better
Adjusted EBITDA does not represent cash flows as defined by GAAP.
Globecomm discloses adjusted EBITDA since it is a financial measure
commonly used in its industry. Because adjusted EBITDA facilitates
internal comparisons of our historical financial position and operating
performance on a more consistent basis, the Company also uses adjusted
EBITDA in measuring performance relative to that of our competitors and
in evaluating acquisition opportunities. The Company's management
regularly uses supplemental non-GAAP financial measures internally to
understand, manage and evaluate the Company's business and make
operating decisions. Adjusted EBITDA is not meant to be considered a
substitute or replacement for net income as prepared in accordance with
GAAP. Adjusted EBITDA may not be comparable to other similarly titled
measures of other companies.
About Globecomm Systems
Globecomm Systems Inc., ("we", "our", "us" or "Globecomm"), is a leading
global communications solutions provider. Employing our expertise in
emerging communication technologies, including satellite and other
transport mediums, we are able to offer a comprehensive suite of system
integration, system products, and network services enabling a complete
end-to-end solution for our customers. We believe our integrated
approach of in-house design and engineering expertise combined with a
world-class global network and our 24 by 7 network operating centers
provides us a unique competitive advantage. We focus this value
proposition to selective vertical markets, including government,
wireless, media, enterprise, and maritime. As a communications solutions
provider we leverage our global network to provide customers managed
access services to the United States Internet backbone, video content,
the public switched telephone network or their corporate headquarters,
or government offices. We currently have customers for which we are
providing such services in the United States, Europe, South America,
Africa, the Middle East, and Asia.
Based in Hauppauge, New York, Globecomm Systems also maintains offices
in Maryland, New Jersey, Virginia, the Netherlands, South Africa, Hong
Kong, Germany, Singapore, the United Arab Emirates and Afghanistan.
This press release contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward looking statements are based on
management's current expectations and observations. You should not place
undue reliance on our forward-looking statements because the matters
they describe are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Our forward-looking
statements are based on the information currently available to us and
speak only as of the date of this press release. Over time, our actual
results, performance or achievements may differ from those expressed or
implied by our forward-looking statements, and such difference might be
significant and materially adverse to our security holders.
We have identified some of the important factors that could cause
future events to differ from our current expectations and they are
described in our most recent Annual Report on Form 10-K, including
without limitation under the captions ''Risk Factors'' and
''Management's Discussion and Analysis of Financial Condition and
Results of Operations,'' and in other documents that we may file with
the SEC, all of which you should review carefully. Please consider our
forward-looking statements in light of those risks as you read this
For Globecomm Investor Relations:
Matthew Byron, 631-457-1301
Vice President, Corporate Office
Globecomm Public Relations:
Globecomm Systems Inc.