MINNETONKA, Minn., Aug. 11 /PRNewswire-FirstCall/ -- Communications Systems, Inc. (Nasdaq: JCS) today reported financial results for its second quarter and six months ended June 30, 2009.
Sales in the 2009 second quarter decreased 9% to $28,584,000 compared to $31,291,000 for the same period in 2008, and net income in the second quarter was $1,748,000, or $.21 per diluted share, compared to $2,260,000, or $.26 per diluted share, in the comparable period in 2008. For the six months ended June 30, 2009 consolidated sales decreased 10 % to $55,349,000 compared to $61,612,000 for the same period in 2008 while net income increased to $2,971,000 or $.36 per diluted share, compared to $2,447,000, or $.28 per diluted share, in the same period of 2008.
Despite the continuing recession within the United States, including weakness in the housing and construction sectors, the Company's consolidated revenues from sales in North America increased slightly in the first sixth months of 2009 compared to the same period in 2008. Consolidated revenues from sales outside North America during the first half of 2009 were, however, impacted by weak economic conditions in Europe and the rest of the world and declined approximately 53% compared to the same period in 2008. Additional and more detailed information regarding the Company's financial results is contained in the Company's report on Form 10-Q which is being filed with the Securities and Exchange Commission on or about August 12, 2009.
Jeffrey K. Berg, President and CEO of Communications Systems, Inc. commented: "During these difficult economic times I am pleased with the performance of CSI and our business units' teams. While the world wide economic downturn in general, and the decline in construction and housing markets in particular, provided many challenges for our business, our operating income for the second quarter and six months ended June 30, 2009 exceeded our internal forecast. In addition, even though we expect difficult market conditions for the remainder of the year, our financial strength will enable us to continue making strategic investments for future sales growth and increased profitability at each of our businesses."
David T. McGraw, Vice President - Finance and CFO, also commented: "CSI's balance sheet remains very strong with a current ratio of 6 to 1 and cash, cash equivalents and investments have increased by $4.6 million dollars to $34,600,000 from December 31, 2008. Net investment income has increased by 54% in 2009 compared to the first six months of 2008, due to a shift in investment strategy that started in 2008. CSI has over $18,000,000 invested in certificates of deposit that are currently yielding over 2.6%, significantly higher than current money market funds.
