close window

Daily Email Update

Stay informed. Sign up for Farm Equipment's Daily News Email.

Farming w/ Passion

Check out the latest news from Horsch here at their website.

Hemisphere GPS Reports 2Q12 Revenues Slip by 3%

CALGARY, August 1, 2012 /CNW/ — (TSX: HEM) Hemisphere GPS reported financial results for the second quarter ended June 30, 2012. All currency amounts are expressed in U.S. dollars.

For the quarter ended June 30, 2012, Hemisphere GPS reported revenues of $19.6 million, a 3% decrease from revenues of $20.1 million reported for the second quarter of 2011. Revenue from the company's agriculture business decreased 3% year-over-year for the quarter, while revenue from its precision products business grew by 1%. Agriculture segment revenues contributed 80% of total second quarter revenues, compared with 81% in the second quarter of 2011.

Revenue growth of 10% in Canada was offset by a decline of 14% in the United States — primarily driven by the impact of the US drought. The company also experienced declines in Europe and South America of approximately 6%, tempered by increased sales in Australia and Asia.

Revenue by Region

Q2 2012

Q2 2011

 

 

 

United States

$6,834,000

$7,910,000

Canada

5,555,000

5,056,000

North America

12,389,000

12,966,000

 

 

 

Europe

3,595,000

3,809,000

Australia

1,219,000

1,207,000

Other International

2,382,000

2,142,000

 

7,196,000

7,158,000

 

 

 

Total

19,585,000

20,124,00 

"Sales in the United States, our largest sales region, were negatively impacted by the substantial drought conditions, particularly with our direct-to-farmer business model" states Steven Koles, president and CEO of Hemisphere GPS. "Primarily due to these drought conditions, we have tempered our growth expectations for the year down to 10%. However our mid to long-term outlook remains attractive despite the unfavorable weather and crop conditions this year. The resulting high grain prices benefit farming operations that were not as impacted by the drought, and long-term, grain commodities are expected to remain at historically high levels. 

“Incentive remains with farmers to invest in productive technology, and we have made several product releases recently with a major product release slated for the autumn buying season. This will be the most important product launch in the company's history and includes full cloud-based asset and data management and processing capabilities through the integration of our AgJunction platform," says Koles.

Gross margin for the second quarter was 43% compared to 47% in the second quarter of 2011, with the year-over-year difference related to product pricing promotions during the quarter, cost increases and the impact of foreign currency.

Total operating expenses increased by $0.1 million from the second quarter of 2011, with the acquisition of AgJunction responsible for $0.7 million of increased expenses. Research and development expenses increased to $3.2 million from $2.5 million in the second quarter of 2011, with AgJunction operating expenses and amortization accounting for $0.4 million of the increase. Sales and marketing expenses decreased by $0.1 million to $3.6 million for the reporting quarter, despite AgJunction expenses of $0.3 million.

Hemisphere GPS reported a net loss of $0.4 million, or ($0.01) per share (basic and diluted) in the second quarter of 2012 compared to net profit of $0.8 million, or $0.01 per share (basic and diluted) in the second quarter of 2011.

For the six months ended June 30, 2012, Hemisphere GPS reported revenues of $42.2 million, a 2% increase from revenues of $41.4 million, for the same period in 2011. Gross margin for the first six months of 2012 was 45.3% compared to 47.6% in the six months of 2011. Operating expenses of $17.9 million for the six months ended June 30, 2012 increased $1 million, or 6% from the first half of 2011. The acquisition of AgJunction during the first quarter added operating costs, including amortization, of $1.4 million to the first half of 2012. The company reported a profit of $1 million in the first half of 2012 or $0.02 per share (basic and diluted), compared to a profit of $2.6 million, or $0.04 per share (basic and diluted) in the first half of 2011.

At June 30, 2012, the company held cash of $6 million, or $0.10 per share, compared to $6.7 million at December 31, 2011. Working capital was approximately $29 million, consistent with December 31, 2011.

The company has 66,280,777 common shares outstanding.

AgJunction

During the first quarter, Hemisphere GPS strategically entered the emerging data services market in precision agriculture with the acquisition of AgJunction, a provider of a cloud-based data management software platform and wireless hardware to precision agriculture retailers and growers. With this acquisition Hemisphere GPS brings real-time decision-making information into the farmer's cab, enabling lower use of pesticides, fertilizer and fuel, while generating higher crop yield, resulting in more profitable farming operations. AgJunction provides attractive growth prospects for Hemisphere GPS. New features and partners are being added, along with additional retail sales locations. Today, AgJunction's client acres under management is 23 million, and growing.

AgJunction serves an emerging growth segment in precision agriculture where ever-increasing global food demand and higher input costs drive the demand for data management services. Over 32,000 growers in the U.S. and Western Canada are benefiting from AgJunction's wireless two-way transfer of data between their farm equipment, their farm office and agriculture service providers. Major agriculture retailers such as the Wilbur-Ellis Company and Crop Production Services Inc. (CPS) use AgJunction to better serve their customers' farming operations by providing data management, site-specific recommendations, tracking work orders, crop inputs and expenses. Delays in viewing and analyzing field information are eliminated. The process of transferring data from field equipment to cloud servers for spatial sorting, field linking, analyzing and creating plans is fast and easy. This works for all major brands of agricultural equipment.

Hemisphere GPS announced several products and enhancements to its AgJunction precision agriculture data services platform during the quarter:

  • AgJunction expanded its compatibility with in-field systems through integration with the John Deere AgLogic fleet logistics management solution. Through the AgJunction cloud-based system, agricultural service providers such as fertilizer dealers, agronomists and co-ops benefit from the seamless two-way transfer of data and in-field work order management.

  • Hemisphere GPS announced the new AgJunction Mobile for iOS, an enhancement to AgJunction, an in-field data collection system featuring global-positioning-system-enabled (GPS-enabled) boundary mapping and soil sampling. Available for both iPhone and iPad, AgJunction Mobile for iOS enables users to synchronize data based on their growers, farms, fields, field boundaries and directed sample locations. Recorded field data are automatically synchronized with the AgJunction cloud system for use in the field, back at the office or through an agriculture service provider.
  • AgJunction added advanced weather data services provided by Weather Decision Technologies Inc. (WDT), providing AgJunction customers more insight and convenience into making weather-related decisions. WDT data includes high-resolution weather map overlays including current radar for the United States and Canada, one-hour and 24-hour precipitation totals, current wind speed, temperature and dew point.

Q2 Product Announcements

  • Hemisphere GPS and Stara announced an expanded OEM partnership as part of Stara's new SpeedDrive X system at the AgriShow Rabeirão Pretoin São Paulo State, Brazil. SpeedDrive X will be factory installed as standard equipment on various models of Stara tractors, sprayers, and spreaders. The new SpeedDrive X combines a customized Hemisphere GPS eDriveX automated steering system and A320 GNSS smart antenna and Stara Topper 4500 terminal providing total user management for precision agriculture.

  • Hemisphere GPS released an affordable A325 GNSS Smart Antenna. This new design incorporates professional-level centimetre and submetre positioning accuracy powered by Hemisphere GPS's Eclipse receiver technology and includes L-band and Bluetooth communications support. A325 is a great fit for a variety of applications including agriculture, construction, straddle carriers, robotics, marine, survey and GIS.

  • Hemisphere GPS announced multiple enhancements to its popular eDriveX automated steering system. With support for the VSi electric steering interface, improved contour functionality, and additional vehicle kit support, eDriveX v2.1 provides an accurate and affordable steering platform for precision farming applications. For eDriveX users needing long-range functionality, Hemisphere GPS released 400-megahertz radio repeater kits that extend the range of the company's RTK systems.

VSi support brings high-performance steering to the simplicity of an electric steering wheel solution and allows eDriveX to be installed on vehicle platforms not previously targeted with hydraulic kits. VSi is a quick and easy performance solution when using eDriveX on a second tractor or other farm machinery.

"We are constantly enhancing our successful eDriveX product line which offers industry leading performance and great value," said Kip Pendleton, senior vice-president and general manager of the Agriculture business for Hemisphere GPS. "Providing new and innovative product features is at the core of our solution-based approach to helping current and new customers become more efficient and productive."


About Hemisphere GPS

Hemisphere GPS designs and manufactures innovative, cost-effective GPS (GNSS) products for positioning, guidance, and machine control applications in agriculture, marine, survey, construction, and other markets. The Company holds numerous patents and other intellectual property and owns several leading brand names, including Outback Guidance®, a leading brand in precision GPS for agriculture. The Company is headquartered in Calgary, Alberta, with major product development, sales, and marketing facilities in Arizona, Kansas, and Australia. Hemisphere GPS is listed on the Toronto Stock Exchange (TSX) trading under the symbol "HEM" and is one of the TSX Cleantech designated companies. For more information about Hemisphere GPS, please go to www.hemispheregps.com.

Posted August 1, 2012
COMMENTS: 0

Post comment / Discuss story * Required Fields
Your name:
E-mail *:
Subject:
Comment *:
Please enter the characters that you see in the field below.
Verification:
Verification 

© 2014. Lessiter Publications and Farm Equipment. 225 Regency Court, Suite 200, Brookfield, WI, 53045. PHONE: (800) 645-8455, E-MAIL: info@lesspub.com.
Website Development by Envision IT