Hemisphere GPS, a designer and manufacturer of advanced GPS products, today reported financial results for the fourth quarter and year ended December 31, 2010. All amounts in this news release are expressed in US dollars. For the fourth quarter ended December 31, 2010, Hemisphere GPS reported $12.2 million in revenues, compared to$12.1 million recorded in the fourth quarter of 2009. Revenues from all market segments increased in the fourth quarter with the exception of OEM sales in the Agriculture segment which were 31% below 2009 due to timing of order receipts.
Specifically, OEM revenues increased by 20% during the second half of 2010, driven by high deliveries in the third quarter which increased 106% over 2009. In the fourth quarter, however, expected OEM orders were deferred into the first half of 2011. Despite deferred orders, the fourth quarter of 2010 still represents the second highest fourth quarter revenue in the Company’s history and the last half of the year is the strongest on record for Hemisphere GPS.
“We experienced a general recovery that strengthened through 2010, with second half revenues that grew by 20% year-over-year, after a decline of 6% in the first half of the year” stated Steven Koles, President and CEO of Hemisphere GPS. “The recovery led us well into 2011 where we have seen improved momentum in the first quarter supporting a return to growth and profitability. Traction from new products, stronger grain prices and signs of economic recovery are believed to have contributed to stronger purchasing since the second quarter of 2010.”
A weaker US dollar softened gross margins and increased operating costs during the fourth quarter. Incremental inventory reserves also lowered margins during the quarter. Hemisphere GPS reported a net loss for the fourth quarter of $3.8 million, or $(0.07) per share (basic and diluted), compared to a net loss of $2.5 million, or ($0.04) per share (basic and diluted), in the fourth quarter of 2009.
The percentage of total sales that were made outside North America in 2010 increased to 40% from 32% in 2009. Sales to Australia showed the strongest relative performance in 2010 with a year-over-year increase of 77% resulting from the launch of an Outback sales network in Australia modeled after the existing Outback sales network deployed in North America. Sales to other markets, excluding Europe, grew by 67% for the year, with particularly strong growth in Asia and South America. In 2010, North American sales declined by 8% for the year given the slower recovery compared to international markets. Following a decline in North American revenues of 17% in the first half of the year, revenues grew by 8% in the back half of 2010. www.hemispheregps.com
