Cogent Systems announced financial results for the second quarter ended June 30.
Second quarter 2010 revenues were US$25.4 million which compares to revenue of $31.8 million reported in the same year ago period. Net income on a GAAP basis for the second quarter of 2010 was $2.7 million, or $0.03 per diluted share. This compares to GAAP net income of $8.5 million, or $0.09 per diluted share in the same year ago period.
Cogent's second quarter of 2010 GAAP results included $1.1 million of non-cash share-based compensation charges. Excluding the effects of share-based compensation, non-GAAP net income for the second quarter of 2010 was $3.4 million, or $0.04 per diluted share. This compares to non-GAAP net income of $9.1 million, or $0.10 per diluted share, in the same year ago period.
“Our order flow in the first half of the year has been very strong to date, and we expect to start seeing the benefit of these orders in the second half of the year and 2011,” said Ming Hsieh, President and CEO of Cogent. “These orders, combined with our year-end backlog of more than $200.0 million, give us good visibility and confidence that we are well positioned to achieve our financial targets for 2010 with a strong second half of the year. While gross margins were impacted by product mix in our initial roll-out for the U.K. Post Office, we expect them to rebound and accelerate starting in the third quarter. During our second quarter we repurchased approximately $6.7 million of our stock, as we remain confident in our business and our ability to capitalize on both the near and longer term opportunities in biometrics.”