Steve Koles, president & CEO, Hemisphere GPSHemisphere GPS, Inc., has reported revenue growth of 41 percent and a return to profitability in the first quarter of 2011 for the three months ending March 31.
For the quarter, the Calgary, Alberta, Canada–based company generated $21.2 million in total revenues, compared to US$15.1 million in the first quarter of 2010. Revenues from all market segments increased in the first quarter of this year.
Hemisphere GPS, Inc., has reported revenue growth of 41 percent and a return to profitability in the first quarter of 2011 for the three months ending March 31.
For the quarter, the Calgary, Alberta, Canada–based company generated $21.2 million in total revenues, compared to US$15.1 million in the first quarter of 2010. Revenues from all market segments increased in the first quarter of this year.
“The recovery in our business that began in the back half of last year continued and strengthened in the first quarter of 2011 with a return to profitability," stated Steven Koles, president and CEO of Hemisphere GPS. "Traction from new products, stronger grain prices and signs of global economic recovery contributed to stronger growth in every geographic market, and all of our product lines.”
The company generated US$1,846,003 in net income for the quarter, a 9 percent profit margin compared to a loss of US$1,009,358 a year ago. Hemisphere GPS also reported an additional “comprehensive income” of $330,000 in the first quarter, which represents the mark-to-market gain on hedging instruments that the company put in place to hedge operating expenses for the remainder of 2011. There were no outstanding hedging instruments in place at March 31, 2010.
Agriculture revenues contributed 83 percent of total first quarter revenues, consistent with the first quarter of 2010. Total sales for the precision products segment were up 44 percent, representing the balance of total revenue in both comparable quarters. Sales of Vector heading sensor products to the marine markets and GPS boards to OEM customers continue to lead the growth in this segment.
By geographic region, total revenues from the United States and Canada grew by approximately 32 percent each. The U.S. market remains Hemisphere GPS’ largest, contributing 49 percent of revenues in the first quarter. Combined with Canada, the two markets represented 66 percent of total revenues for the first quarter.
European sales increased 78 percent, contributing 17 percent of total first quarter revenues, and Australia sales increased 186 percent from the year-earlier period, contributing 5% of total revenues. Sales to Australia showed the strongest relative performance resulting from the 2010 launch of an Outback sales network in Australia, modeled after the existing Outback sales network deployed in North America.
Other international sales, including South America and Asia among others, grew by 13percent, contributing 11 percent of total revenues. International sales growth for the quarter was primarily driven by customer growth in Asia, where the Hemisphere GPS has successfully partnered with distribution and OEM partners.
