LCC International Files 1st Quarter 2008 10Q and Reports Operating Results
For Immediate Release
June 27, 2008
- Revenue from Continued Operations increased by 70% over Comparable Quarter
- Gross Profit Increased by $6.2 Million over Same Period
McLean, VA, June 27, 2008 -- LCC International, Inc. (NASDAQ: LCCI), a global leader in wireless voice and data turn-key services, today reported results for the quarter ended March 31, 2008. The results reported increased revenue and improved gross margins as compared to the comparable quarter ended March 31, 2007.
Revenues from continuing operations for the quarter increased by $17.3 million over the comparable 2007 quarter to $41.9 million compared with $24.6 million in revenues for the first quarter of 2007. The increase in revenue was primarily attributable to the acquisitions of the WFI US and WFI EMEA business which transactions were completed in March and May of 2007 as well as increased revenue in certain European countries and in Pakistan. The impacts of these increases in revenues were partially offset by decreased revenue in the UK and Algeria, a result of the Company’s de-emphasis of its deployment services in those countries.
Gross profit increased by $6.2 million to $9.9 million in the 2008 quarter from $3.7 million in the comparable 2007 quarter. The increase is attributable to the increased revenue and efforts to reduce our direct expenses in relation to revenues and a focus on higher margin business. Gross margin increased as a percentage of revenue from continuing operations to 23.7% in the 2008 quarter from 15.0% in the comparable quarter in 2007.
Sales, Marketing and General and Administrative Expenses increased by $1.9 million to $11.1 million in the 2008 quarter as compared to $9.2 million in the comparable 2007 quarter. As a percentage of revenue Sales, Marketing and General and Administrative Expenses decreased to 26.6% in 2008 from 37.5% in the comparable quarter in 2007.
The Company’s loss from continuing operations (excluding restructuring charges) decreased to $2.4 million in the 2008 quarter from $6.2 million in the comparable 2007 quarter.
Depreciation and Amortization expense increased by $0.6 million to $1.2 million in the 2008 quarter as compared to $0.6 million in the comparable 2007 quarter primarily as a result of amortization of intangible assets acquired as a result of the aforementioned WFI transactions The Company also incurred a restructuring charge of $0.4 million related to its continuing efforts to reduce General and Administrative expenses.
Interest expense (net of interest income) increased to $1.4 million in the 2008 quarter as compared to $0.2 million in the 2007 quarter. This increase was due to the increase in debt incurred in March and June of 2007 as a result of the WFI acquisitions mentioned above.
Net loss for the 2008 Quarter decreased by $3.1 million to $6.2 million ($0.23 per share) from a net loss of $9.3 million ($0.36 per share) in the comparable 2007 quarter.
Conference Call Details: Monday, June 30th at 8:30am ET
A conference call and web cast to present the first quarter results will be held Monday, June 30th at 8:30am ET. The webcast and accompanying presentation can be accessed by logging on to the “Investor Relations” section of the Company’s website, www.lcc.com. The call also can be accessed by dialing (800) 901-5231 or (617) 786-2961 prior to the start of the call.
For those unable to join the live conference call, a replay will be available from 11:00 a.m. (ET) on June 30, 2008 through midnight (ET) on July 7, 2008. To access the replay, dial (888) 286-8010 or (617) 801-6888 and refer to confirmation code 98822972. The webcast will be archived on the Company’s website.
About LCC International, Inc.
LCC International (NASDAQ: LCCI) is the recognized leader in providing wireless voice and data turn-key services to the telecommunications industry. Our service offering includes network services, business consulting, tools-based solutions, and training through our world-renowned Wireless Institute. The Company has worked with all major access technologies (including UMTS, EV-DO, HSDPA and WiMAX) and has participated in the success of some of the most sophisticated wireless systems in the world. LCC is unique in its ability to provide comprehensive turnkey services to wireless operators around the world. We bring local knowledge and global capabilities to our customers, offering innovative solutions, insight into cutting-edge developments and delivering solutions that increase business efficiencies. News and additional information are available at www.lcc.com.
Cautionary Note regarding forward-looking statements under the Private Securities Litigation Reform Act of 1995:
Information in this release regarding LCC's expectations, beliefs, and intentions are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to LCC as of the date of this release, which may change, and LCC assumes no obligation to update any such forward-looking statement. These statements are not guarantees. Factors that could cause or contribute to differences from such expectations include, but are not limited to risks associated with international operations, challenges and costs arising from integration of new operations and other factors that may affect our business are discussed in LCC's filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q.
