Hemisphere GPS has reported US$25.9 million in revenues for the first quarter of 2008, an increase of 56 percent from the year-earlier period (US$16.7 million) and a record for the company.
The company also reported record first quarter net income of $5.8 million, or $0.11, an increase of 169 percent compared to $2.2 million, or $0.05 per share, in the first quarter of 2007.
Hemisphere GPS has reported US$25.9 million in revenues for the first quarter of 2008, an increase of 56 percent from the year-earlier period (US$16.7 million) and a record for the company.
The company also reported record first quarter net income of $5.8 million, or $0.11, an increase of 169 percent compared to $2.2 million, or $0.05 per share, in the first quarter of 2007.
The Calgary, Alberta, Canada–headquartered manufacturer of GPS-based guidance systems and OEM GPS products attributed the gains to strong fundamentals in the agriculture market where record grain prices are resulting in higher farm incomes.
Increases in agricultural commodity prices are being driven by high global demand for food and bio-fuels in a world with low grain inventories. Increased cash receipts for farming operations are enabling growers to invest more in farm equipment and technologies such as GPS, which improve farming efficiencies and crop yields. Hemisphere GPS derived more than 85 percent of its revenues from the agricultural sector in 2007.
The company began shipments of its Outback S3 — the next generation in Outback Guidance, product line — at the end of March, which contributed to revenue growth in the quarter.
“We have seen a 70 percent increase in our revenues since the 2007 North American harvest began,” said Steven Koles, president & CEO of Hemisphere GPS. “The combination of record 2007 harvests and record commodity prices in 2008 bode well for a strong year overall.”
Significant revenue growth was realized in all product lines and regions for ground agriculture, air agriculture, and precision products such as marine heading applications.
During the quarter, Hemisphere GPS also released a development kit for its Eclipse dual-frequency GPS receiver technology, enabling its OEM customers to more easily access and test all of the available features on the Eclipse dual frequency board and expediting product design timelines, according to the company.
