Cogent Systems Announces First Quarter 2009 Revenues of $31.0 million (+26% on YoY basis)

Pasadena, Calif.- May 5, 2009.
Cogent Systems (Nasdaq:COGT) today announced financial results for the first quarter ended March 31, 2009.
First quarter 2009 revenues were $31.0 million, an increase of 26% over revenue of $24.6 million in the same year ago period. Net income on a GAAP basis for the first quarter of 2009 was $9.0 million, or $0.10 per diluted share. This compares to GAAP net income of $14.4 million, or $0.16 per diluted share in the same year ago period, which included $10.0 million, or $0.07 per share, in settlement income related to the Company’s settlement agreement with Northrop Grumman.

Cogent's first quarter of 2009 GAAP results included $976,000 of non-cash share-based compensation charges. Excluding the effects of share-based compensation and the net tax effect, non-GAAP net income for the first quarter of 2009 was $9.5 million, or $0.11 per diluted share. This compares to non-GAAP net income of $15.0 million, or $0.16 per diluted share, in the same year ago period, excluding the effects of similar items in both periods, but including the $10.0 million, or $0.07 per share, in settlement income in the first quarter of 2008.

“We are off to a solid start in 2009, with first quarter revenue increasing 26% year-over-year,” commented Ming Hsieh, President and Chief Executive Officer of Cogent. “During the quarter, our top line results were driven by orders from a wide range of customers including the DHS, Spain, Pennsylvania, Romania, and Connecticut. Looking forward, we continue to receive follow-on orders from existing customers and our pipeline remains robust. We expect several key procurements to be awarded by the end of the year.”

“Gross margin was up over 1,000 basis points sequentially to 68.4% during our first fiscal quarter, well above our target range,” commented Paul Kim, Chief Financial Officer of Cogent. “We generated $26 million in cash this quarter, ending the quarter with cash and investments of approximately $506.4 million, or $5.59 per share. Additionally, deferred revenue increased to $80.8 million at the end of the first quarter, up $5.9 million from the immediately preceding quarter.”