Re: Brain/Brawn- International Fibercom(sym:IFCI) Q200 Notes
Thread- Everything sounded good in the call. But cutting through the justifibly excited CEO Kealy's remarks- I'm concerned about why Aerocomm isn't more successful by now? IFCI has heavily emphasized this project for about 9 months now with virtually zero results. Only trials to date. And they just put $700,000 into the division in Q1. BUT as usual, IFCI seems to be VERY excited about this product. Not only potential products sales, but the resultant service revenues for installing it on cell towers.
IFCI says Aerocomm is projected to do $6 million in 2000? As of today, they only have generated is $700K at the very most. I was under the impression most of the $700K was service revenues? Maybe I'm getting my terminology mixed up. Is Aerocomm the Wireless Group name, or is it a product name too? I don't know?
So again, I'm puzzled about this whole thing. If you want detailed information on the Aerocomm product itself, see: Message 13068976
And to see something negative about Aerocomm, look at the "PS" in my linked url to this post. I'm surprised no analyst questioned this. But I probably shouldn't be, because, IMVHO there are no big houses following IFCI because it is a microcap. Albeit, a nicely growing one.
The only real star, and current money maker, is the Infrastructure division. Not Equipment and not Wireless. So IMVHO, this is very much like other brain/brawn companies. They are trying hard to distinguish themselves from their peers, but just don't seem to be making much headway at this point. And I'm slightly concerned it may even cause them problems in the future. -MikeM(From Florida)
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Here are some highlights from the call:
-Rev up 69% yr/yr to $75 million
-Gross margin is 29%
-$103 million in new orders in Q2 alone
-Picked up Comcast via their Premiere Cable acquisition
-Internal/Organic growth of 49% yr/yr for first six months
-DSO Q1 was 107 and Q2 is 104(I had DSO of 90 in Q1?)
-Postive cash flow to tune of $2.8 million
-Headcount 2,700
-Current backlog is at $250 million
-Infrastructure Group up 77% y/y to $65 million
-Equipment Group up 24% y/y to $9.3 million
-Wireless Group up 92% to $.7 million
-Ultra-Q is out there in trials. NO deployments.
-Ultra-Q keeps wireless SPs from having to add towers because it filters out unwanted signals on a tower under attack. Purifies signal to tower.
-Now selling, "Mux-box," to wireless SPs. Could be another source of revenues for the Wireless Division.
-PF.Net, Level Three, Cox, Williams, ATT, Cablevision are top customers. No one customer is over 20%. More like top customer is 15% maximum.
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International FiberCom Reports Record Second Quarter Results
Second Quarter Revenues Up 69% to $75.6 Million; Net Income, Before Nonrecurring Acquisition-Related Expenses, Up 103% to $4.8 Million, or $0.15 Per Basic and $0.14 Per Diluted Share
PHOENIX July 25, 2000-- International FiberCom, Inc. today announced record operating results for its second quarter ended June 30, 2000. Revenues for the quarter were $75.6 million compared to $44.9 million in the second quarter of 1999, a 69 percent increase and new quarterly record. Net income for the quarter, before nonrecurring acquisition-related expenses, was $4.8 million, or $0.15 per basic and $0.14 per diluted share, compared to net income of $2.4 million, or $0.08 per basic and per diluted share for the second quarter of 1999. Net income, after nonrecurring acquisition-related expenses, for the second quarter was $3.4 million, or $0.11 per basic and $0.10 per diluted share.
For the six months ended June 30, 2000, revenues were $139.7 million compared to revenues of $76.6 million for the same period in 1999, an increase of 82 percent. Net income, before nonrecurring acquisition-related expenses, for the six months ended June 30, 2000 totaled $8.4 million, or $0.27 per basic and $0.25 per diluted share, compared to $4.4 million, or $0.16 per basic and $0.15 per diluted share, for the first six months of 1999. Net income, after nonrecurring acquisition-related expenses, for the first six months of 2000, was $7.0 million, or $0.23 per basic and $0.21 per diluted share.
During the second quarter of 2000, the Company completed a merger with Premier Cable Communications, Inc. in a business combination accounted for as a pooling of interests; and, accordingly, the Company's historical financial statements include the results of Premier for all periods presented. The Company incurred expenses of approximately $1.4 million, or $0.04 per basic and diluted share, in connection with the acquisition of Premier.
EBITDA for the second quarter of 2000 was $12.3 million, or 16.3 percent, before nonrecurring acquisition-related expenses, compared to $6.4 million, or 14.3 percent, for the second quarter in 1999.
International FiberCom Chairman and CEO Joseph Kealy commented, ``This second quarter was important for three reasons. First, revenues of our core Infrastructure Development and Services group grew more than 77 percent, and its gross margin increased to 29 percent, compared to 21 percent in last year's second quarter. Second, we generated more than $103 million in new contracts during the quarter, which exceeded the quarter's revenues. Finally, the Company generated cash flow from operations of $2.8 million for the second quarter of 2000 and decreased its overall days sales outstanding (DSO), its first decrease since the second quarter of 1998.
``We believe that there is considerably more work to be done in building out the broadband and wireless infrastructure than the entire industry is capable of performing. We are working with a number of the largest players in the business, the most aggressive, and the best funded. We are continuing to improve our agility and our reputation for providing a broader range of services than our larger competitors,'' Kealy added.
International FiberCom is a leading end-to-end solutions provider for the telecommunications industry, offering a broad range of engineering-based solutions designed to enable and enhance voice, data and video communications through fixed and wireless networks. The Company designs, deploys, and manages internal and external networks infrastructure for leading wireline, wireless and broadband telecommunications providers in the U.S. |
