Comtech (COGO) has announced financial results for its first quarter of 2005, which ended March 31, 2005. The company reported improved net revenue of $20.8 million, up 11.8% compared to the first quarter of 2004.
Mobile handset related sales increased by $.8 million or 6.6%, and telecom equipment related sales increased by $.7 million, or 11% from the first quarter of 2004. Sales related to consumer electronics products and other products, increased by $.7 million, or 282.9%, from the first quarter of 2004.
Cost of revenues, which includes the aggregate purchase of components from suppliers, were $17.6 million compared to $15.7 million, an increase of 12.1% from the first quarter of 2004. Gross profit for the quarter was $3.2 million, up 10.3% compared to $2.9 million for the first quarter of 2004.
Gross margins remained stable at approximately 15.3% compared to 15.4% in the first quarter of 2004; with minor fluctuations due to changes in product mix during the quarter. Wireless showed modest growth on a year over year basis and management expects improvement throughout the remainder of the year.
Selling, general and administrative expenses were $797,000, up 162.2% compared to the $304,000 reported last year. The increase was primarily attributed to corporate expenses related to being a public company in the U.S. following the company's share exchange in July 2004 as well as the retention of additional employees.