By Ken Nagy, CFA
CTS Corporation (CTS) designs, manufactures, assembles, and sells electronic components and sensors worldwiuot;>
The year over year improvement was primarily due to continued implementation of increased cost control for the products and services which the company resells, and its professional service costs were positively impacted by better utilization associated with greater recognized revenue from these services in the quarter.
Furthermore, management anticipates that as higher-margin software and service revenue continues to grow, margins will continue to improve. Software and service revenue composed 40 percent of consolidated revenues for the first time during the second quarter 2013.
In January 2013, DecisionPoint announced that it launched a new sales and marketing initiative and dedicated a team to accelerate the Company's expansion into enterprise mobile software, software subscriptions and professional services.
The newly created Enterprise Solutions Group will lead the new effort by expanding the sales and marketing of APEXWare™ software throughout the United States.
With premium mobile data applications estimated to have generated carrier revenues of over $2.3 billion in 2008 and expected to grow at a CAGR of 35 percent or to as much as $10.3 billion in 2013, Apex’s presence in this important growing market will help DecisionPoint grow its revenues and margins and to drive increasing shareholder value.
Similarly, the company has now added Android Operating Systems to the family of APEXWare software compatibility, which vastly expands the addressable market.
Management expects sales to be robust, and margins to continue to climb based on what has been seen in the third quarter to date. As a result, management anticipates revenues in the third quarter 2013 to be up by more than 20 percent over revenues reported for the second quarter.
A copy of the full research report can be downloaded here >> DecisionPoint Report
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