The Company continuesto remain profitable despite the difficult economic times that have impacted theinfrastructure segment of our business. While we are disappointed with the levelof infrastructure bookings, we are seeing more proposal activity and are in agood position to achieve a better level of business in fiscal 2010. Theshortfall in infrastructure revenue and income has not been as a result oflosing contracts to competitors but rather has resulted primarily from adeferral in funding. We are continuing the process of adjusting expense levelsto be in line with the realities of the marketplaces in which the infrastructuresegment operates." Mr. Hershberg continued, "Globecomm continues to executeextremely well on its Global Managed Services vision, which is providing a verybeneficial backdrop of stability during the current economic downturn. TheCompany continues to see multiple acquisition opportunities in complementaryvertical marketplace segments, which would provide strategic opportunities toestablish an immediate footprint and operating know how specific to thoseverticals. With the strength of our cash position and our service businessresults we are able to review strategic acquisition opportunities and pursueopportunities that further leverage our existing global network." Non-GAAP MeasuresAdjusted EBITDA is a non-GAAP measure which represents net income beforeinterest income, interest expense, provision for income taxes, depreciation andamortization expense and non-cash stock compensation expense.
Adjusted EBITDAdoes not represent cash flows defined by GAAP. Globecomm discloses adjustedEBITDA since it is a financial measure commonly used in its industry. AdjustedEBITDA is not meant to be considered a substitute or replacement for net incomeas prepared in accordance with GAAP. Adjusted EBITDA may not be comparable toother similarly titled measures of other companies.
Reconciliation betweenadjusted EBITDA and GAAP net income is provided in a table immediately followingthe Condensed Consolidated Balance Sheets. Non-GAAP financial measures are not meant to be considered in isolation or as asubstitute for comparable GAAP measures, and should be read only in conjunctionwith the Company`s consolidated financial statements prepared in accordance withGAAP. The Company`s management regularly uses supplemental non-GAAP financialmeasures internally to understand, manage and evaluate the Company`s businessand make operating decisions About Globecomm SystemsGlobecomm Systems Inc. provides end-to-end value-added satellite-basedcommunication products, services and solutions by leveraging its core satelliteground segment systems and network capabilities, with its satellitecommunication services capabilities. The products and services Globecomm offersinclude pre-engineered systems, systems design and integration services, managednetwork services and life cycle support services.