Communications Systems, Inc. Reports Second Quarter and Six Months 2010 Results

MINNETONKA, Minn., Aug. 9 /PRNewswire-FirstCall/ -- Communications Systems, Inc. (Nasdaq: JCS) today reported financial results for its second quarter and six months ended June 30, 2010.

For the three months ended June 30, 2010, net income was $2,415,000, or $0.29 per diluted share, on sales of $30,659,000. In 2009, the Company earned $1,748,000, or $0.21 per diluted share, on sales of $28,584,000. For the six months ended June 30, 2010, net income was $3,746,000, or $0.45 per diluted share, on sales of $56,541,000. For the same period in 2009, the Company earned $2,971,000, or $0.36 per diluted share, on sales of $55,349,000.

Jeffrey K. Berg, President and CEO, commented: "We are pleased with our 2010 second quarter and six months results.  Revenues for the second quarter of 2010 increased by 7% and net income increased by 38% compared to the same period in 2009. Our year to date revenues increased 2% and net income increased by 26% compared to 2009. Despite adverse and difficult conditions in U.S. residential and commercial construction markets and a weak recovery from the global recession, we achieved improved results through careful management of expenses and increased sales of higher margin data communications and telecommunications products."

David T. McGraw, Vice President of Finance and CFO, also commented: "CSI's balance sheet is strong, with a current ratio of 7 to 1 as of June 30, 2010. As of June 30, 2010, CSI's cash, cash equivalents and investments were $38,000,000 compared to $40,000,000 at December 31, 2009, which reflected payouts of previously accrued liabilities.  In the second quarter the Company declared a $.15 per share dividend compared to a $.12 per share dividend for the comparable 2009 quarter. For the six months ended June 30, 2010 the Company declared total dividends of $.29 per share compared to $.24 per share for the same period in 2009."  

Further information regarding the Company's results and related matters is provided in the Company's Form 10-Q report for the quarter ended June 30, 2010 that is being filed on or about August 10, 2010.

Cautionary Statement

From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, the Communications Systems Inc. may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans which are typically preceded by the words "believes," "expects," "anticipates," "intends" or similar expressions.  For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the SEC, which could cause actual performance, activities or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.

About Communications Systems

Communications Systems, Inc. provides physical connectivity infrastructure and services for cost-effective broadband solutions and is a leading supplier of voice-grade connecting devices and wiring systems. CSI serves the broadband network market as the world's leading supplier of media conversion technology, that permits networks to deploy fiber optic technology while retaining the copper-based infrastructure already embedded in the network. In addition, CSI supplies copper wire and fiber optic structured wiring systems for broadband networks, as well as line filters for digital subscriber line service. CSI also provides network design, training and management services.

SOURCE Communications Systems, Inc.