Back to top

Analyst Blog

Fourth quarter revenue was below our forecast with both segments showing continued weakness. Operating margins declined but less so than prior periods when revenue dropped. Backlog was down but showed encouraging signs as the sequential quarterly change was less than the second to third quarterly change.         


The decrease in revenue over the last six months was due to reduced order activity for both segments. The decline in gross margins were mainly due to fixed expense coverage over a smaller revenue  base. The uncertainty between budget, appropriations and spending in the government sector may have a continued impact on revenue.  Weakness in the global macroeconomic environment  may continue to be be a near term problem. Cisco Systems has reported flat revenue and flat gross profit over the last four quarters but expects some growth in the second half of 2012. Cisco is LGL's largest customer.

The Company’s backlog decreased from $9.1 million to $7.4 million, a modest decline when compared to prior quarters.

LGL remains cautious regarding its outlook for repeat orders in the first half of 2012  as major electronic manufacturing service companies and original equipment manufacturer’s report mixed market conditions.  The Company believes its customer positions remain strong across its target market segments.

Likewise, expects to see growth in revenue and earnings over the next two years through the expansion of its product portfolio through continued investment in product development and possibly by acquisitions.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%