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Computer peripherals

Global Village Communication Reports Record Revenues and Net Income

Strategic Insights

— 1 min read

Global Village Communication, Inc. reported strong financial results for its third fiscal quarter ended December 31, 1994, with revenues rising 72 percent to a record $21.8 million and net income increasing 70 percent to $1.9 million. The company's earnings per share also improved to 12 cents, up from 10 cents in the same quarter last year. The strong demand for the company's products, particularly the TelePort and PowerPort lines, drove the record revenues and net income.

Key Takeaways:

  • Revenues for the third fiscal quarter ended December 31, 1994, rose 72 percent to a record $21.8 million, up from $12.7 million in the similar period last year.
  • Net income increased 70 percent to $1.9 million, up from $1.1 million a year ago.
  • Earnings per share improved to 12 cents, up from 10 cents in the same quarter last year.
  • Shares used in the calculation of per share data increased to 16.1 million, up from 11.7 million a year ago, due to the company's IPO in February 1994 and its acquisition of SofNet, Inc. in August 1994.
  • The TelePort product line accounted for 35 percent of revenues, up sharply from 16 percent in the prior quarter.
  • Gross margins in the third fiscal quarter increased to 47 percent, up from 44 percent, due to increased shipments of higher-margin software products and improved operating efficiencies.
  • Global Village introduced OneWorld Internet, a totally integrated Internet connectivity package, at the Macworld Exposition, which will establish the company as a nationwide Internet service provider to small and medium-sized businesses.
  • The company announced the expansion of its line of OneWorld telecommunications servers, including OneWorld Combo, OneWorld Fax, and OneWorld Network Modem.

Statistics:

  • 72% increase in revenues for the third fiscal quarter ended December 31, 1994, to $21.8 million.
  • 70% increase in net income to $1.9 million.
  • 12 cents earnings per share, up from 10 cents in the same quarter last year.
  • 16.1 million shares used in the calculation of per share data, up from 11.7 million a year ago.
  • 35% of revenues accounted for by the TelePort product line, up from 16% in the prior quarter.
  • 47% gross margins in the third fiscal quarter, up from 44% in the previous quarter.

Sources:

  • Global Village Communication, Inc. Press Release, January 16, 1995
  • Business Wire, January 16, 1995
  • Global Village Communication, Inc. (NASDAQ: GVIL)
  • Macworld Exposition
  • SofNet, Inc.
  • OneWorld Internet
  • OneWorld telecommunications servers

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