The first quarter revenue of $32.9 million is reported by RRSat which is a year over year increase of 12.3%. To add to that the management of the company announced a $0.05 per share dividend which carries through on RRSat’s intention to distribute 50% of its net income to its shareholders. The revenue growth sped up from 10.6% in the last quarter and was propelled by new contract wins. Also a full quarter with the JCA acquisition which closed September 3, 2013.
The leadership of the company is attributed to its improved execution and now that the combining of JCA is complete the expectations are that this will allow RRSat to bring in larger contract wins with tier 1 content providers. RRSat is now investing into its infrastructure hoping to see an increase in sales during 2014. As proof of the company’s advances the short term backlog from the end of the year accelerated to $94 million from $92 million last quarter. As the distribution of content goes from satellite networks to the internet it is expected that the positive bookings are headed in the proper direction as the service provider must benefit from near term catalysts as in sports venues like the 2014 World Cup. RRSat will battle to get to that point along the way.
Long term analysis predicts that the company will have to get more attention and exposure to the digital content to beat the competition. With revenue at $32.9 million in comparison with guidance of between $31.5 million and $33.5 million their sales have increased by 10.6% year over year and 6.2% sequentially. The gross margin of 24.5% grew from 24.1% last year and 23.3% in the last quarter. The gross margin is predicted to grow based on more efficient use of existing satellite capacity and the growth percentage of higher margin on demand services. EBITDA adjusted points to $5.0 million increased 8.4% but was down from a $5.2 million last quarter.
RRSat Global Communications Network Ltd. (NASDAQ: RRST) is a provider of comprehensive deliver, production, content management and end to end transmission services to a multitude of more than 630 television, radio, data channels, utilizing its extensive integrated worldwide satellite, internet communications, and fiber network. It has 6 teleports in Israel, US, and Europe which combined with over 20 partner teleports, RRSat provides uplink, downlink and turnaround services for television, radio, and data channels using 250 C-band Ku-band and Ka-Band (2.4 to 32m) satellite dishes.