Time waits for no one, but it can be put to work. Symmetricom manufactures synchronization and timing equipment used in GPS satellites and national power grids and to control the flow of voice, video, and data traffic in telephone, wireless, and broadband networks. Offerings include atomic instruments and components, hydrogen masers, timescale systems, GPS instrumentation, synchronous supply units, and performance measurement and management tools. The company serves original equipment makers, communications service providers, and other businesses. Symmetricom also gets a large portion of sales from contracts or subcontracts to US government agencies. It generates most of its sales from customers in the US.
The company operates through two segments: communications and government and enterprise. Its communication segment, which accounts for about 55% of sales, includes products for communications infrastructure. Symmetricom's government and enterprise segment includes time technology products for aerospace, power infrastructure, and science markets.
The US is Symmetricom's largest market, representing more than 60% of revenue. Europe and Asia together generate about 30% sales.
Sales and Marketing
Products are sold through a direct sales force, manufacturers' sales reps, distributors, and systems integrators.
Revenue was up 14% in fiscal 2012 (ended June), getting the company back on a growth track after being knocked off in 2011 because of product-fulfillment issues. In 2011 Symmetricom outsourced the manufacturing and logistics operations of its Puerto Rico facility, its largest, to Sanmina-SCI, which resulted in some product fulfillment delays that led to a 6% drop in sales. With the transition complete, the company in 2012 saw its communications and government and enterprise segments rise 11% and 18%, respectively.
Net income was up substantially in 2012, jumping nearly 700% to more than $11 million, as the company held steady on expenses and reported a nearly 90% decline in restructuring charges.
Mergers and Acquisitions
Symmetricom paid $3.5 million (plus additional payments based on future performance) in 2011 to acquire California-based Brilliant Communications, a developer of software used to manage network timing and synchronization functions. The deal gave Symmetricom a boost in the area of software for Internet protocol network backhaul and femtocell (a base station used in wireless networks) applications. – less