TSYS » Topics » Government Systems Revenue, Cost of Revenue, and Gross Profit:

This excerpt taken from the TSYS 10-Q filed May 1, 2009.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
We generate government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily deployable satellite-based communications systems, and integration of those systems into customer networks. These are largely variations on our SwiftLink® product line, which are lightweight, secure, deployable communications systems, sold to units of the U.S. Department of Defense, and other agencies.


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Systems sales in our Government Segment more than tripled to $32.1 million in the first quarter of 2009 compared to $6.9 million for the three-months ended March 31, 2008. This increase represents higher unit sales volume of our SwiftLink® and deployable communication systems resulting from competitive wins, under the WWSS 5-year contract vehicle.
 
The cost of our government systems revenue consists of costs related to purchased system components, compensation, benefits, travel, and the costs of third-party contractors that we engage. These costs have increased as a direct result of the increase in volume. These equipment and third-party costs are variable for our various types of products, and margins may fluctuate between periods based on pricing and product mixes.
 
Our government systems gross profit was $7.1 million in the first quarter of 2009, up from $1.8 million in the comparable period of 2008 due mainly to increased sales volume.
 
This excerpt taken from the TSYS 10-Q filed Nov 4, 2008.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
We generate government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily deployable communications systems, and integration of those systems into customer networks, which are largely variations on our SwiftLink® product line. These are lightweight, secure, deployable communications systems, sold to units of the U.S. Departments of State, Justice, and Defense, and other agencies. We recognize contract revenue as billable costs are incurred, and for fixed-price product delivery contracts using the percentage-of-completion method, measured by either total labor costs, total costs incurred, or units shipped compared to total estimated labor costs, total costs, or units as appropriate under the contract. We recognize estimated losses on contracts in their entirety upon discovery. If we do not accurately estimate total labor costs or total costs to complete a contract or do not manage our contracts within the planned budget, then future margins may be negatively affected or losses on existing contracts may need to be recognized, or contract terms must be renegotiated.
 
Systems sales in our Government Segment were $24.6 million and $42.1 million for the three- and nine-months ended September 30, 2008 compared to $11.2 million and $29.0 million for the three- and nine-months ended September 30, 2007. The increase in the three- and nine-months ending September 30, 2008 versus the same periods in 2007 represents a higher sales volume from the fulfillment of task orders under the Army Worldwide Satellite Systems (WWSS) 5-year contract vehicle. In July 2008, TCS was named the sole awardee of a delivery order contract with a potential value of $246 million over the next several years, under the WWSS procurement vehicle.
 
The cost of our government systems revenue consists of purchased system components, compensation, benefits, travel, satellite airtime, and the costs of third-party contractors that we engage. These costs for the three- and nine-months ended September 30, 2008 increased by 122% and 38%, respectively, over the same periods in 2007 as a direct result to the increase in revenue. These equipment and third-party costs are variable for our various types of products, and margins fluctuate between periods based on the respective product mixes.


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Our government systems gross profit increased to $3.5 million and $8.1 million, respectively, in the three- and nine-months ended September 30, 2008 from $1.7 million and $4.3 million, respectively, in the comparable periods of 2007 mainly as a result of cost savings and slightly higher margins. The gross profit as percentage of revenue for the three months ended September 30, 2008 versus the same period in 2007 decreased slightly to 14% from 15% due to competitive pricing for awards to date under the WWSS contract.
 
This excerpt taken from the TSYS 10-Q filed Aug 5, 2008.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
We generate government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily deployable communications systems, and integration of those systems into customer networks, which are largely variations on our SwiftLink® product line. These are lightweight, secure, deployable communications systems, sold to units of the U.S. Departments of State, Justice, and Defense, and other agencies. We recognize contract revenue as billable costs are incurred, and for fixed-price product delivery contracts using the percentage-of-completion method, measured by either total labor costs, total costs incurred, or units shipped compared to total estimated labor costs, total costs, or units as appropriate under the contract. We recognize estimated losses on contracts in their entirety upon discovery. If we do not accurately estimate total labor costs or total costs to complete a contract or do not manage our contracts within the planned budget, then future margins may be negatively affected or losses on existing contracts may need to be recognized, or contract terms must be renegotiated.
 
Systems sales in our Government Segment were $10.5 million and $17.4 million for the three- and six-months ended June 30, 2008 compared to $11.4 million and $17.9 million for the three- and six-months ended June 30, 2007. The decrease in second quarter of 2008 versus the same period in 2007 represents a slightly lower sales volume from the fulfillment of task orders under the Army Worldwide Satellite Systems (WWSS) 5-year contract vehicle. In July 2008, TCS was named the sole awardee of an indefinite delivery/indefinite quantity delivery order with a potential value of $246 million over the next 39 months, under the WWSS procurement vehicle.
 
The cost of our government systems revenue consists of purchased system components, compensation, benefits, travel, satellite airtime, and the costs of third-party contractors that we engage. These equipment and third-party costs are variable for our various types of products, and margins fluctuate between periods based on the respective product mixes.
 
Our government systems gross profit increased to $2.8 million and $4.6 million, respectively, in the three- and six-months ended June 30, 2008 from $1.6 million and $2.7 million, respectively, in the comparable periods of 2007 mainly as a result of cost savings and slightly higher margins.
 
This excerpt taken from the TSYS 10-Q filed May 5, 2008.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
We generate government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily deployable communications systems, and integration of those systems into customer networks, which are largely variations on our SwiftLink® product line. These are lightweight, secure, deployable communications systems, sold to units of the U.S. Departments of State, Justice, and Defense, and other agencies. We recognize contract revenue as billable costs are incurred, and for fixed-price product delivery contracts using the percentage-of-completion method, measured by either total labor costs, total costs incurred, or units shipped compared to total estimated labor costs, total costs, or units as appropriate under the contract. We recognize estimated losses on contracts in their entirety upon discovery. If we do not accurately estimate total labor costs or total costs to complete a contract or do not manage our contracts within the planned budget, then future margins may be negatively affected or losses on existing contracts may need to be recognized, or contract terms must be renegotiated.
 
Systems sales in our Government Segment were $6.9 million for the three-months ended March 31, 2008 versus $6.4 million in the first quarter of 2007. The increase in the first quarter of 2008 over the same period in 2007 represents higher sales volume of unit sales of our Swiftlink® and deployable communication systems resulting from competitive wins, largely under the World Wide Satellite Systems Army procurement vehicle.
 
The cost of our government systems revenue consists of costs related to purchased equipment components, compensation, benefits, travel, and the costs of third-party contractors that we engage. These equipment and third-party costs are variable for our various types of products, and margins may fluctuate between periods based on the respective product mixes.
 
Our government systems gross profit was $1.8 million in the first quarter of 2008, up from $1.0 million in the comparable period of 2007 due mainly to increased sales volume and slightly higher margins.
 
This excerpt taken from the TSYS 10-Q filed Nov 7, 2007.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
We generate government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily deployable communications systems, and integration of those systems into customer networks, which are largely variations on our SwiftLink® product line. These are lightweight, secure, deployable communications systems, sold to units of the U.S. Departments of State, Justice, and Defense, and other agencies. We recognize contract revenue as billable costs are incurred, and for fixed-price product delivery contracts using the percentage-of-completion method, measured by either total labor costs, total costs incurred, or units shipped compared to total estimated labor costs, or units as appropriate under the contract. We recognize estimated losses on contracts in their entirety upon discovery. If we have not accurately estimated total labor costs or costs to complete a contract or do not manage our contracts within the planned budget, then future margins may be negatively affected or losses on existing contracts may need to be recognized.
 
Systems sales in our Government Segment were $11.2 million and $29.0 million for the three- and nine-months ended September 30, 2007 compared to $3.9 million and $15.7 million for the three- and nine-months ended September 30, 2006. The increases represent higher sales volume in 2007, resulting mainly from the fulfillment of task orders under the Army Worldwide Satellite Systems (WWSS) 5-year contract vehicle, for which TCS was named one of six vendors in the third quarter of 2006.
 
The cost of our government systems revenue consists of purchased system components, compensation, benefits, travel, satellite airtime, and the costs of third-party contractors that we engage. These equipment and third-party costs are variable for our various types of products, and margins fluctuate between periods based on the respective product mixes.
 
Our government systems gross profit was $1.7 million in the third quarter of 2007 versus $1.2 million in 2006, due primarily to higher volume. Gross profit on systems for the nine-months ended September 30, 2007 was $4.3 million versus $5.7 million in the comparable periods of 2006. The decrease for the nine-months was mainly as the result of lower margins on the sales to date under the WWSS contract vehicle versus SwiftLink® sales to other customers.
 
This excerpt taken from the TSYS 10-Q filed Aug 9, 2007.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
We generate government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily deployable communications systems, and integration of those systems into customer networks, which are largely variations on our SwiftLink® product line. These are lightweight, secure, deployable communications systems, sold to units of the U.S. Departments of State, Justice, and Defense, and other agencies. We recognize contract revenue as billable costs are incurred, and for fixed-price product delivery contracts using the percentage-of-completion method, measured by either total labor costs, total costs incurred, or units shipped compared to total estimated labor costs, or units as appropriate under the contract. We recognize estimated losses on contracts in their entirety upon discovery. If we have not accurately estimated total labor costs or costs to complete a contract or do not manage our contracts within the planned budget, then future margins may be negatively affected or losses on existing contracts may need to be recognized. Systems sales in our Government Segment were $11.4 million and $17.9 million for the three- and six- months ended June 30, 2007 compared to $5.5 million and $11.8 million for the three- and six- month ended June 30, 2006. The increases represent higher sales volume in 2007, resulting mainly from the fulfillment of task orders under the Army Worldwide Satellite Systems (WWSS) 5-year contract vehicle, for which TCS was named one of six vendors in the third quarter of 2006.
 
The cost of our government systems revenue consists of purchased system components, compensation, benefits, travel, satellite airtime, and the costs of third-party contractors that we engage. These equipment and third-party costs are variable for our various types of products, and margins fluctuate between periods based on the respective product mixes.
 
Our government systems gross profit decreased to $1.6 million and $2.7 million, respectively, in the three- and six- months ended June 30, 2007 from $2.3 million and $4.5 million, respectively, in the comparable periods of 2006 mainly as a result of lower margins on the sales to date under the WWSS vehicle.
 
This excerpt taken from the TSYS 10-Q filed May 10, 2007.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
We generate government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily deployable communications systems, and integration of those systems into customer networks, which are largely variations on our SwiftLink® product line. These are lightweight, secure, deployable communications systems, sold to units of the U.S. Departments of State, Justice, and Defense, and other agencies. We recognize contract revenue as billable costs are incurred, and for fixed-price product delivery contracts using the percentage-of-completion method, measured by either total labor hours, total costs incurred, or units shipped compared to total estimated labor hours, costs, or units as appropriate under the contract. We recognize estimated losses on contracts in their entirety upon discovery. If we have not accurately estimated total labor hours or costs to complete a contract or do not manage our contracts within the planned budget, then future margins may be negatively affected or losses on existing contracts may need to be recognized. Systems sales in our Government Segment were $6.4 million for the three-months ended March 31, 2007 versus $6.2 million in the first quarter of 2006. The increase represents higher sales volume in 2007 than in 2006, resulting mainly in partial fulfillment of our first large task order for approximately $11 million in shipments of custom systems under the Army Worldwide Satellite Systems (WWSS) 5-year contract vehicle for which our company was named one of six vendors in the third quarter of 2006 .
 
The cost of our government systems revenue consists of compensation, benefits, travel, satellite airtime, costs related to purchased equipment components, and the costs of third-party contractors that we engage. These equipment and third-party costs are variable for our various types of products, and margins may fluctuate between periods based on the respective product mixes.
 
Our government systems gross profit of $1.0 million in the first quarter of 2007 was down from $2.1 million in the comparable period of 2006 due mainly to lower margins on the initial sales under the WWSS vehicle.
 
This excerpt taken from the TSYS 10-Q filed Aug 9, 2006.
Government Systems Revenue, Cost of Revenue, and Gross Profit:
 
Government system sales increased to $5.5 million and $11.8 million, respectively, for the three- and six-month periods ended June 30, 2006 from $2.1 million and $5.3 million, respectively, in the comparable periods of 2005. We made several large systems sales and introduced several new products in our deployable communications system product line that generated additional sales volume in 2006 as compared to 2005.
 
We generate Government systems revenue from the design, development, assembly and deployment of information processing and communication systems, primarily our SwiftLink® brand lightweight, secure, deployable satellite-based communications systems, and integration of those systems into customer networks. Our principal government systems sales are to units of the U.S. Departments of State, Justice, and Defense and other agencies.
 
The cost of our government systems revenue consists of purchased system components, compensation, benefits, travel, satellite airtime, and the costs of third-party contractors that we engage. These equipment and third-party costs are variable for our various types of products, and margins fluctuate between periods based on the respective product mixes.
 
Our government systems gross profit increased to $2.3 million and $4.5 million, respectively, in the three- and six-months ended June 30, 2006 from $0.5 million and $1.4 million, respectively, in the comparable periods of 2005 mainly as a result of higher systems sales volume.
 
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