GVI 1Q numbers

Here's another post in our continuing look at just how bad the first quarter was. This time, it's GVI | Samsung reporting numbers. Remember that this is a company about three years into a major turnaround, as orchestrated by Steve Walin and Joe Restivo, and can be considered something of a "new" company, despite the fact that it's been around for a while. It had been growing pretty consistently, but 1Q put an end to that:
For the quarter ended March 31, 2009, net income was approximately $116,000 or one-third of a cent per diluted share, as compared to net income of approximately $330,000, or one cent per diluted share, in the quarter ended March 31, 2008. Net revenues for the quarter ended March 31, 2009 were approximately $10.4 million, a decrease of approximately 8%, as compared to net revenues of approximately $11.3 million in the quarter ended March 31, 2008.
Eight percent off certainly isn't armeggedon, and it's certainly a hell of a lot better than many industries. Bad numbers for a company that would like to still be growing, but more evidence that security has been fairly resilient to the economic situation.
"In the face of a deep worldwide recession, we are reporting our ninth consecutive profitable quarter," said GVI Chief Operating Officer/CFO Joe Restivo. "Net sales were down approximately 8% reflecting the difficult economic conditions. Despite the economy we were able to strategically deploy our sales and marketing efforts to record strong overall sales gains in Latin America and selectively expand market share."
Check this out, though. Remember that $116,000 in profit?
Net interest expense for the quarter ended March 31, 2009 decreased 42% to approximately $113,000 from approximately $196,000 in the quarter ended March 31, 2008. The decrease was primarily a result of a lower interest rate on the Company's credit facility which stood at prime plus 25 basis points or 3.5% as of March 31, 2009.
Well, at least $83,000 of that was thanks to the really cheap credit that's available right now. They've got a gross margin of 28.5 percent translating to an operating margin of 3 percent. Sustainable? Last year it was more like 30 percent and 6 percent. As long as it's really the economy that did them in for 1Q, everything seems fairly healthy.