PYTM.18.At.22 per share earnings with a PE 20=Stock price of$4.40.At 10 PE=Stock price of $2.20.
If they can manage debt's problem then a huge weeeeeeeeeeeeeeeeee.
Less than 10 million shares out.
Earnings up,Revenues up,margin up,Expenses down.
PORTA SYSTEMS CORP.
Porta Systems Corp. Reports Results for the Quarter and Nine Months Ended September 30, 2004
THURSDAY , NOVEMBER 11, 2004 11:18 AM
SYOSSET, N.Y., Nov 11, 2004 (BUSINESS WIRE) -- Porta Systems Corp. (OTCBB:PYTM) today reported operating income for the quarter ended September 30, 2004 of $1,398,000 compared to operating income of $104,000 for the quarter ended September 30, 2003. The Company reported net income of $1,058,000, $0.11 per share (basic and diluted), for the quarter ended September 30, 2004 as compared with a net loss of $214,000, $(0.02) per share (basic and diluted), for the comparable quarter of 2003.
The Company reported operating income for the nine months ended September 30, 2004 of $3,231,000 compared to an operating loss of $1,993,000 for the nine months ended September 30, 2003. The Company reported net income of $2,206,000, $0.22 per share (basic and diluted), for the nine months ended September 30, 2004 compared with a net loss of $2,681,000, $(0.27) per share (basic and diluted), for the comparable period of 2003.
Sales for all units were $7,883,000 for the quarter ended September 30, 2004 versus $5,787,000 for the quarter ended September 30, 2003, an increase of $2,096,000 (36%). Copper Connection/Protection sales were $6,054,000 versus $3,712,000 for the quarters ended September 30, 2004 and 2003, respectively. The increase for the quarter primarily reflects higher sales volume to British Telecommunications as a result of an increase by British Telecommunications in the availability of DSL Lines in the United Kingdom, and, to a significantly lesser extent, increased sales to our domestic and one other international customer. Signal Processing sales for the quarter ended September 30, 2004 were $1,529,000 versus $952,000 for the quarter ended September 30, 2003, an increase of $577,000 (61%). This increase in revenue resulted from our ability to ship orders from backlog on a timelier basis and better cash flow from our operations. OSS sales were $289,000 for the quarter ended September 30, 2004 versus $860,000 for the quarter ended September 30, 2003, a decrease of $571,000 (66%). The decreased OSS sales during the quarter resulted from our inability to secure new orders and the reduction of the scope of our OSS operations and marketing effort.
Sales for all units were $22,255,000 for the nine months ended September 30, 2004 versus $14,125,000 for the nine months ended September 30, 2003, an increase of $8,130,000 (58%). Copper Connection/Protection sales for the nine months ended September 30, 2004 were $16,453,000 versus $7,944,000 for the nine months ended September 30, 2003, an increase of $8,509,000 (107%). This increase is attributed to increased sales of Connection products to British Telecommunications that commenced in the third quarter of 2003, as a result of an increase by British Telecommunications in the availability of DSL Lines in the United Kingdom, and to a significantly lesser extent, from an increase in our domestic sales and sales to another international customer. Signal Processing sales for the nine months ended September 30, 2004 were $4,121,000 versus $3,023,000 for the nine months ended September 30, 2003, an increase of $1,098,000 (36%). This increase resulted from an increased level of business and our ability to ship orders from backlog on a timelier basis resulting from an increased cash flow from operations. OSS sales were $1,635,000 for the nine months ended September 30, 2004 versus $2,450,000 for the nine months ended September 30, 2003, a decrease of approximately $815,000 (33%). The decrease in OSS sales resulted from the reduction in scope of our OSS operations and marketing effort. During the first two quarters of 2004, OSS sales reflect the recognition of revenue from sales under existing OSS contracts. During the third quarter, substantially all of the OSS revenue was from maintenance contracts. The Company believes that the OSS business will continue to reflect revenue from maintenance contracts and not from new installations.
The overall gross margin for all business units was 39% for the quarter ended September 30, 2004, compared to 36% for the quarter ended September 30, 2003. Gross margin for the nine months ended September 30, 2004 was 38% compared to 29% for the nine months ended September 30, 2003. The increase in the gross margin percentages reflects better absorption of manufacturing overhead created by the increase in revenue from our Connection business primarily related to the increased business from British Telecommunications, as stated above, that commenced in the third quarter of 2003, reduced OSS costs reflecting the scaling down of OSS operations, and lower operating expenses, all of which enabled us to operate more efficiently than in the comparable periods of 2003. In addition, the cost of sales for the nine months and quarter ended September 30, 2004, includes approximately $360,000 of severance accruals related to the termination of certain manufacturing personnel during the third quarter of 2004, which was partially offset by the reduction of certain estimated accrued costs recorded in prior years of approximately $170,000.
Operating expenses for the quarter and nine months ended September 30, 2004 decreased by $306,000 (16%) and by $799,000 (13%), respectively, when compared to last year's quarter and nine months. The decreases, for both periods, resulted from the reduction in scope of our OSS operations and marketing effort.
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