Tuesday, August 10, 2010
CVU Q2 results
Revenue continues to climb to record levels. Up to $12.5 million from $11.0 million. Gross margins continue climbing to 26.7% from 25%. Net income increased to $1.2 million (18 cents) from $860K (14 cents). GAAP diluted share count increased 8.7% since last year.
Government prime work is down to only 24% of revenue.
They expect gross margins to be 24% to 26% for the year.
Mr. Fred noted, “Based on results for the first half of the year and expectations for a strong second half, we are confident that we will reach our 2010 guidance which calls for revenue to be in the range of $48 million to $51 million, with resulting net income in the range of $4.3 million to $4.8 million.”
Total contract awards for 1st half were $31.1 million, up from only $4.9 million in the 1st half of last year.
They get another $1.5 million on the extremely long awaited C-5 TOP contract.
Mr. Fred added, “We are again reaffirming our long-term guidance which is based on our expectation that our three major long-term production programs (A-10, E-2D and G650) will be in full scale production and producing consistent significant revenue during 2011. For 2011 we expect that revenue will be in the range of $78 million to $81 million, with resulting net income in the range of $8.9 million to $9.5 million. Using 2008 as the baseline, we expect a three-year compound annual growth rate for revenue in the range of 30% to 35%, with a resulting compound annual growth rate for net income in the range of 50% to 60%.”
They sold 500K shares to raise $3.5 million ($7 per share).
I'll look at the balance sheet later....