DecisionPoint Systems, Inc., a leading provider and integrator of Enterprise Mobility, Wireless Applications and RFID solutions, reported financial results for the second quarter and six months ended June 30, 2013.
Second Quarter 2013 Results
Revenue was $14.7 million, a climb of about 7% from the first quarter of 2013, but a drop from the comparable quarter of 2012, when revenue was $17.8 million. The drop was largely due to a reduction in relatively low-margin hardware sales, as well as to the timing of orders and shipments, with some orders anticipated for the second quarter slipping to the third quarter.
Gross profit rose by 370 basis points to 24.2% from 20.5% in the first quarter of 2013, and up 330 basis points from 20.9% in the second quarter of 2012. We anticipate that as higher-margin software and service revenue continues to grow, margins will continue to improve; for the second quarter, revenues were, for the first time, 40% higher-margin software and services.
The Net Loss was down from $2.1 million in the first quarter of this year to $1.1 million in the second quarter, vs a loss of $1.2 million in the second quarter of 2012. On an EPS basis, the loss per share was $0.15, compared to $0.20 loss per share in the second quarter of 2012.
SG&A expense declined by $300,000 to $4.5 million due primarily to cost savings, compared to $4.8 million in the second quarter of 2012, and the operating loss was $0.9 million in this year's second quarter vs $1.1 million in the second quarter of 2012, due primarily to improved margins and cost savings. Adjusted EBITDA (a non-GAAP measurement that management uses to measure progress) for the second quarter of 2013 was negative $16,000, a million-dollar positive swing from the first quarter of this year.
Business Highlights of the Second Quarter 2013
Announced Apple iOS mobile operating systems support for APEXWare Field Service software. APEXWare is a robust mobile-centric field service application that increases field service productivity, improves first-time fix rates, and maximizes parts availability
-Released Motorola MC45 support for APEXWare Field Service software.
-Announced availability for Motorola ET1 tablet of its ContentSentral delivery application. ContentSentral converts a tablet computer into a mobile presentation and productivity tool.
-DecisionPoint Systems completed the required Apple Sales Training following its appointment as an Authorized Apple Reseller last December.
Corporate and Financial Highlights of the Second Quarter 2013
-Michael Roe promoted to Principal Financial Officer.
-Sequential improvement of approximately $1 million in Adjusted EBITDA compared to Q1 2013.
-Subsequent to the end of the quarter, on August 16, the Company signed definitive documents for a private placement of common stock, for gross proceeds of $1.8 million, of which $200,000 came from management and existing shareholders.