Currently viewing and reading

GSE Systems Announces Fourth Quarter and Year End 2009 Financial Results

Posted by Dana in March 13th 2010

SE Systems, Inc. (GSE) (NYSE Amex – GVP), a leading global provider of real-time simulation and training solutions to the power, process, manufacturing and Government sectors, reported that revenue for the three months ended December 31, 2009 was $11.1 million, a 32% increase from the revenue reported for the three months ended December 31, 2008 of $8.4 million.

GSE reported operating loss of $1.1 million for the fourth quarter of 2009 as compared to operating income of $140,000 in the fourth quarter 2008. Net loss for the three months ended December 31, 2009 was $2.2 million or $0.11 per common share on both a basic and diluted basis as compared to net loss of $69,000 or $0.00 per common share on both a basic and diluted basis for the fourth quarter of 2008.

Revenue for the year ended December 31, 2009 was $40.1 million, a 38% increase from the revenue reported for the year ended December 31, 2008 of $29.0 million. GSE reported operating income of $563,000 for the year ended December 31, 2009 as compared to operating loss of $12,000 for the year ended December 31, 2008. For the year ended December 31, 2009, net loss was $797,000 or $0.05 per common share on both a basic and diluted basis versus net loss of $690,000 for the year ended December 31, 2008 or $0.04 per common share on both a basic and diluted basis.

The Company is a 10% owner of the Emirates Simulation Academy LLC in the United Arab Emirates. As a result of recent developments, at December 31, 2009, the Company determined that its investment in ESA ($117,000) had been impaired and established reserves for the trade receivable due from ESA at December 31, 2009 ($1.6 million) and the cash that GSE has on deposit with the Union National Bank in the UAE as a partial guarantee for ESA’s credit facility ($1.3 million). Partially offsetting these charges is the reversal of the remaining deferred profit related to the Company’s sale of five simulators to ESA in prior years ($543,000) and the remaining agent fee that was due upon payment for the final outstanding receivable ($96,000). Thus in total, the Company has taken a charge of $2.4 million related to ESA in the fourth quarter 2009. Excluding the effect of this $2.4 million charge, GSE would have reported operating income of $454,000 for the fourth quarter 2009 and net income of $214,000 or $.01 per share on both a basic and diluted basis for the fourth quarter 2009. For the year ended December 31, 2009, GSE would have reported operating income of $2.1 million and net income of $1.6 million or $.09 per share on both a basic and diluted basis for the twelve months ended December 31, 2009.

GSE’s backlog as of December 31, 2009 was approximately $53.9 million compared to $38.1 million at December 31, 2008. Backlog is defined as the remaining value of signed contracts and does not include any value for contracts being negotiated or for contracts that have been signed since December 31, 2009.