Replies to post #1852 on The Rising Influence of Rising Affluence

[DewDiligence]

Cubic Acquires XIO Strategies

[Financial terms are not disclosed.]

http://finance.yahoo.com/news/Cubic-Acquires-XIO-Strategies-iw-3999047491.html?x=0&.v=1

›Strengthens Expertise in Supply Chain Management Solutions; Mary Ann Wagner to Lead Consolidated Global Tracking Business

Tuesday January 4, 2011, 7:00 am EST

SAN DIEGO, CA--(Marketwire - 01/04/11) - Cubic Corporation (NYSE:CUB) announced today it has entered into an agreement to acquire XIO Strategies, Inc., a recognized leader in supply chain management and automatic identification technology deployment, to enhance the company's expertise and market position in Department of Defense (DoD) and commercial logistics management, consulting and RFID technology domains.

Mary Ann Wagner, the founder, former President and CEO of XIO Strategies, will become President of Cubic Global Tracking Solutions (Cubic GTS), and will lead the combined entity from the new company headquarters in Vienna, Virginia. Relocating the Cubic GTS headquarters to the Washington, D.C. metro area will enhance the company's ability to service its DoD and commercial customers.

"We are pleased to announce this acquisition and to appoint Mary Ann as the leader of this growing business," stated Brad Feldmann, President of Cubic Defense Applications. "She has more than 25 years of experience in global logistics and supply chain management, strategic planning, policy development, and has held executive and sales management positions at Stanley Works and FedEx."

"I am thrilled to accept this new opportunity and look forward to capitalizing on Cubic's innovative and industry-leading global tracking and mesh technologies," said Wagner.

Cubic GTS was formed after the acquisition of Impeva Labs in May 2010 to accelerate Cubic's entry into defense, homeland security, and maritime logistics markets. Cubic's unique global tracking technology is deploying with the U.S. Department of Defense in the Middle East and Southwest Asia and relies on an innovative combination of satellite, GSM mobile communications, and an encrypted RFID mesh network to provide 24 x 7 worldwide coverage. Additionally, the company supplies smart devices for dry containers, refrigerated containers and trucks, and rail applications that use a Device Management Center to provide continuous, reliable, real-time monitoring and event notification - without requiring fixed infrastructure or proprietary technology.

Cubic Corporation is the parent company of three major business segments: defense systems, mission support services, and transportation. Cubic Defense Applications, a leading supplier of combat training systems, communications, cyber technologies, and global tracking solutions. Cubic Mission Support Services is a leading provider of training, operations, maintenance, and technical support services. Cubic Transportation Systems is the world's leading provider of automated fare collection systems and services for public transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com.‹

[DewDiligence]

Cubic Reports FY1Q11 Results and Record Backlog

[CUB does not hold quarterly CC’s. The best way to become acquainted with CUB’s businesses is to catch their occasional presentations at investor conferences—or to read the posts on this board :- )

Please see the prologue of #msg-53598437 for the reason I think CUB is a good stock and a beneficiary of The Global Demographic Tailwind. (And be sure to read #msg-53690679 if you have not done so already!)

In FY1Q11, sales and operating income increased strongly in the mass-transit and defense-systems segments, but were stagnant in the mission-support-services segment. Two out of three ain’t bad, however, and the overall backlog reached is at a record-high level.]

http://finance.yahoo.com/news/Cubic-Corp-NYSE-CUB-Reports-iw-3425970912.html?x=0&.v=1

›Thursday February 3, 2011, 6:00 am

SAN DIEGO, CA--(Marketwire - 02/03/11) - Cubic Corporation (NYSE:CUB) today reported earnings and sales for the quarter ended December 31, 2010. Sales for the first fiscal quarter were $284.4 million compared to $250.7 million last year, an increase of 13 percent. Net income attributable to Cubic shareholders increased by 45 percent to $19.9 million or 74 cents per share this year compared to $13.7 million or 51 cents per share last year. Net income in the first quarter benefitted from the retroactive reinstatement of the U.S. research and development credit, which reduced the income tax provision by $1.5 million.

Operating income increased in all three business segments. Consolidated operating income increased by 33 percent in the first fiscal quarter to $27.2 million, compared to $20.4 million last year. Cash flows from operations were $16.2 million for the quarter.

Cubic's acquisition of Abraxas Corporation on December 20, 2010 did not have a significant impact on sales, net income or operating income for the first quarter as only 11 days of Abraxas operations were included in the first quarter results.

Transportation Systems Segment

Cubic Transportation Systems (CTS) sales increased in the first quarter this year by 20 percent to $89.4 million from $74.3 million last year. Sales were higher from work on contracts in Australia and London.

Operating income from CTS increased 37 percent in the first quarter from $11.0 million last year to $15.1 million this year. Higher sales from contracts in Australia and London contributed to the increase, along with improved margins on contracts in North America.

Defense Systems Segment

Cubic Defense Systems (CDS) sales increased 27 percent to $95.8 million from $75.6 million in last year's first quarter. Sales increases in the training systems business were partially offset by a small decrease in communications business sales.

Operating income improved to $8.3 million from $6.7 million in last year's first quarter despite investment in development and marketing of cross domain and global tracking products that negatively impacted operating income by $2.3 million during the first quarter. Higher operating income on higher training systems sales contributed to the overall increase in operating income.

Mission Support Services Segment

Sales at Mission Support Services (MSS) decreased 1 percent to $98.8 million from $100.2 million in the first quarter of last year.

Operating income from MSS was $5.1 million compared to $4.0 million in the prior year's first quarter. Last year's first quarter included a provision of $2.0 million for a dispute with a customer over contract terms. Partially offsetting the improvement in operating income for the quarter over last year were expenses of $0.7 million incurred in the first quarter this year related to the acquisition of Abraxas.

Backlog

Total backlog was a record high $2.840 billion at December 31, 2010, compared to $2.486 billion at September 30, 2010, the Company's previous high backlog. The acquisition of Abraxas Corporation during the quarter added $107.7 million to total backlog.

Financial Condition

The company continues to maintain a strong liquidity position, ending the period with $267.4 million in cash and short-term investments, and total debt of only $16.3 million. The Company made cash payments of $124.0 million during the quarter in connection with the acquisition of Abraxas.

Cubic Corporation is the parent company of three major business segments: defense systems, mission support services and transportation systems. Cubic Defense Applications is a leading supplier of combat training systems, communications, cyber technologies, and global tracking solutions. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. Cubic Transportation Systems is the world's leading provider of automated fare collection systems and services for public transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com.‹