RRsat Global Communications Network Ltd. (RRST), an Israeli provider of global content management and distribution services to television and radio broadcasters, announced second quarter financial results this morning. Revenues rose 30% to $19.1 million vs. analysts’ consensus of $18.5 million. Adjusted net income (non-GAAP) was $3.6 million, or 20 cents per share, an increase of 31% and 3 cents better than analysts’ estimates. Net income on a GAAP basis was $3.3 million, or 19 cents per share.
Backlog of signed agreements continues to rise, reaching a record $174 million at quarter’s end. RRsat raised revenue guidance for the full year to a range of $77 to $78 million. For the third quarter the company now expects to achieve between $19.7 and $20.3 million. Analysts currently anticipate revenues of $76.5 million and $19.3 million for the full year and third quarter respectively.
David Rivel, CEO of RRsat commented, “The second quarter of 2008 was another strong quarter, particularly in terms of revenues while improving our profitability, back to the ranges we expect. Furthermore, we continued to generate healthy cash flow, which will support our expansion strategy. Our backlog grew strongly, again to record levels offering us continued strong visibility for the coming years. In addition, we closed the acquisition of the Hawley teleport that will contribute to our growth in 2009 and beyond.”
Shares of RRST closed at $12.21 yesterday and have traded in a range of $10.15 – $26.50 during the past year. RRST pays a quarterly dividend of 8 cents per share for a yield of 2.7%. In early pre-market trading shares are bid 2.3% higher at $12.50.
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