RRsat Global Communications Network Ltd. (NASDAQ: RRST) reported its revenues in the third quarter of 2013 were a record USD30.6m an increase of 7.3% compared to USD28.5m in the third quarter of 2012 and up from USD29.5m in the second quarter of 2013.
The company said the revenue growth was due to a combination of organic growth, and one month of contribution from JCA, which was acquired September 3, 2013.
Gross profit in the third quarter of 2013 was USD7.5m, an increase of 7.2% compared to USD7.0m in the third quarter of 2012 and up from USD7.4m in the second quarter of 2013. The gross profit in the third quarter was impacted by USD40,000 in expense related to foreign currency adjustments, USD100,000 in depreciation related to the new play-out facility and USD80,000 in non-recurring recuperation expense. Gross margin in the third quarter of 2013, inclusive of these factors, was 24.5%, unchanged from the third quarter of 2012 and slightly down compared to 24.9% in the second quarter of 2013.
The third quarter of 2013 included USD0.9m in non-recurring acquisition expenses related to the JCA transaction, in addition to the foreign currency impact described above. The third quarter also included an additional USD112,000 in increased sales and marketing investments designed to expand the company´s addressable market. The company does not expect any acquisition expenses in the fourth quarter, and the initiative to consolidate facilities was completed in the third quarter.
RRsat Global Communications Network provides global, end-to-end content management and distribution services to the rapidly expanding television and radio broadcasting industries covering more than 150 countries. Visit the company´s website www.rrsat.com.