The company has reported revenue for the fourth quarter ended December 31, 2008 of $46.4 million, representing an increase of 9.2% compared with $42.5 million for the fourth quarter 2007 and an increase of 1.9% compared with $45.5 million for the third quarter 2008. Net income for the fourth quarter was $13.6 million, or $0.45 per diluted share, an increase of 1.9% compared with $13.4 million, or $0.43 per diluted share, for the fourth quarter 2007, and a decrease of 0.5% compared with $13.7 million, or $0.44 per diluted share, for the third quarter 2008.
Our fourth quarter was an excellent finish to the year, and our employees should be proud of the results they delivered, stated Stephen Daly, chairman and chief executive officer. We are also pleased to have received in December a $35.0 million multi-year production order for microwave subsystems that will be used in an advanced U.S. military weapon system. Moving to the production phase of this project marks the successful completion of several years of effort by our advanced subsystems development team, for which they should be congratulated. For 2009, we will remain focused on expanding our technology portfolio, gaining market share, managing expenses and positioning the company for growth.
For the fourth quarter of 2008, revenue from customers in the US was $19.1 million, or 41% of the company’s total revenue, and revenue from customers outside the US was $27.3 million, or 59% of total revenue. Gross margin was 72.0% for the fourth quarter as compared with 70.8% for the fourth quarter of 2007 and 72.5% for the third quarter of 2008. Operating income for the fourth quarter was $20.9 million, or 45.1% of revenue. Total cash and cash equivalents at the end of 2008 was $180.9 million, a decrease of $4.8 million for the quarter.
For the year ended December 31, 2008, the company repurchased 1,317,000 shares of the company’s stock for $41.6 million. Net bookings for 2008 were $183.4 million, a 15.9% increase over bookings of $158.3 million in 2007. The backlog at December 31, 2008 was $39.6 million compared with $36.5 million at December 31, 2007, and included $2.7 million attributable to the $35.0 million defense contract entered into in the fourth quarter. Deliveries and related revenue under this contract are anticipated to commence in 2010.
Business Outlook:
The company anticipates revenue for the first quarter ending March 31, 2009 to be in the range of $36.0 million to $38.0 million and net income to be in the range of $8.3 million to $10.2 million, or $0.28 to $0.34 per diluted share. The decline in the revenue and profitability outlook reflects the likely impact of the current global economic downturn and related disruption in credit markets on the company’s target markets.
