Route1 earns $1.08-million in operating profit in
Route1 earns $1.08-million in operating profit in Q1
2012-05-28 16:58 ET - News Release
Mr. Tony Busseri reports
ROUTE1 INC. REPORTS FIRST QUARTER 2012 FINANCIAL RESULTS
Route1 Inc. has released its financial results for the first quarter of fiscal 2012, which ended March 31.
"Route1's operations continue to perform well. We are making great strides in evolving our technology, continuing to build a diversified sales pipeline and ensuring the company is strongly positioned to manage accelerated demand. Calendar year 2012 should be an exciting year for Route1," said Tony Busseri, chief executive officer of Route1.
Results for the first quarter were positively affected by the proceeds of an arbitration award of approximately $3.4-million, which was received on Jan. 24, 2012. For the quarter ended March 31, 2012, $1.1-million of devices and appliances revenue, $600,000 of service revenue, and $600,000 of cost of revenue were included in the company's financial statements. As previously disclosed, the cost of pursuing the arbitration was highlighted in the 2011 financial statements.
Improved revenues and earnings
Total revenues for the period ended March 31, 2012, increased to more than $2.9-million from $1.4-million in the first quarter of 2011. Cost of revenues rose during the quarter largely due to expenses related to the arbitration award; however, gross profit increased to $2.3-million from $1.2-million in same quarter of 2011.
Operating profit for the first quarter was $1.1-million, compared with $154,150 a year earlier. During the quarter, Route1's expenses increased as a result of higher legal fees associated with the pursuit of patents, its investment in research and development, and selling and marketing as the company builds its operations for future growth.
The company increased its total comprehensive income for the three months ended March 31, 2012, to $982,879 from $60,822 in the first quarter of 2011. Basic and diluted earnings per share were unchanged at nil.
Earnings before interest, taxes, depreciation and amortization for the most recent quarter were $1.1-million compared with approximately $205,000 in the first quarter of 2011.