“The company markedly advanced its M2M strategy in the second quarter and first half of the year, the result of strong demand of its new M2M solutions and the acquisition of new product and service lines,” said Stratton Nicolaides, CEO and chairman of Numerex. “These vertically-focused solutions continue to attract new customers in security, supply chain, and asset monitoring and tracking. Our recently acquired offender monitoring business is performing well and is the cornerstone of our ‘people tracking’ initiative, which includes mobile worker, personal emergency response and child safety programs. Overall, our vertical market focus is centered on the delivery of high-value solutions that typically yield a higher contribution margin and increase average revenue per unit. As a result, the company expects the momentum created year-to-date coupled with a robust opportunity funnel and sales pipeline will produce incrementally favorable results in the second half of the year.”
2Q 2014 comparisons to 2Q 2013
Total net revenues were up 31 percent to $22.6 million. Subscription and support revenues were up 29 percent to $16.2 million. Embedded devices and hardware revenues were up 35 percent to $6.4 million. Gross profit increased 61 percent to $10.7 million, reflecting a 47 percent margin.
2Q year-over-year compared to 2Q 2013
Gross margin on subscriptions and support revenues was 61.3 percent compared to 54.6 percent. GAAP income from continuing operations, net of income taxes was $200,000. Adjusted EBITDA increased 161 percent to $3 million. Adjusted EBITDA margin doubled to 13.2 percent from 6.6 percent.
Six month year-to-date 2014 compared to six month year-to-date in 2013
Gross margin on subscriptions and support revenues was 61.3 percent compared to 55.4 percent. GAAP income from continuing operations, net of income taxes was $1.4 million, which was up 215 percent. Adjusted EBITDA increased 92 percent to $5.8 million. Adjusted EBITDA margin was 13.3 percent compared to 8.9 percent, which was an increase of 49 percent.