SSE Telecom Inc. first quarter net income increases 46% on 20% revenue gain

Business Wire, Feb 5, 1996

VIENNA, Va.--(BUSINESS WIRE)--Feb. 5, 1996--SSE Telecom Inc. (NASDAQ:SSET) Monday announced that net income for the first quarter of fiscal 1996 ended Dec. 30, 1995 increased 46% to $493,000, or $.09 per share, from $337,000, or $.06 per share, for the first quarter of fiscal 1995.

Revenue advanced 20% to $9,019,000 from $7,523,000 last year.

"Business was good in the first quarter, and we are pleased by the pace of orders, including nearly $2,000,000 in new federal contracts we've announced recently, as we move into the second fiscal period," said Frederick C. Toombs, president of SSE Telecom.

Toombs said that the acquisition of the business of Fairchild Data Corp., which closed effective Jan. 29, 1996, will be reflected in SSE's operating results beginning in the current quarter. Fairchild Data, a leading manufacturer of satellite modems and related earth station products with more than 15,000 installations worldwide, had sales for the fiscal year ended June 30, 1995 of $13,000,000.

"SSE Telecom's two wholly owned subsidiaries - SSE Technologies, Inc. on the satellite transceiver side, and Fairchild Data on the modem side - give us an exceptionally strong position in the satellite earth station market. This position will be enhanced as we integrate the well-established sales and customer support functions of the two subsidiaries over the next couple of months. Together with the growth we expect at SSE Technologies, the acquisition of Fairchild Data should generate significant growth for SSE Telecom this year," Toombs said.

Exclusive of Fairchild Data, SSE's backlog at Dec. 30, 1995 was approximately $7,800,000, compared to backlog of $6,500,000 at December 31, 1994. Fairchild Data had backlog of approximately $2,800,000 at Dec. 30, 1995. Toombs cautioned that the timing of receipt of large orders and changes in factory production rates make meaningful comparisons of backlog difficult.

"Another significant recent development affecting SSE was the successful launch of EchoStar's first high power direct broadcast satellite (DBS) at the end of December," Toombs added. He noted that SSE owns 912,717 EchoStar Communications Corp. (NASDAQ:DISH) common shares, which are valued on the company's balance sheet at $22,100,000 (including deferred taxes) at Dec. 30, 1995, based on EchoStar's closing stock price of $24.25 on that date. This value is adjusted for increases or decreases in the value of EchoStar common stock at the end of each quarter. Prior to EchoStar's public offering in June 1995, these shares had been carried on SSE's books at cost, approximately $1,692,000.

SSE Telecom, Inc. is a leading satellite earth station component and system manufacturer. To date, more than 27,000 SSE transceivers and Fairchild Data modems have been installed in satellite earth stations in more than 80 countries worldwide. -0-