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Hemisphere GPS reported financial results for the first quarter ended March 31, 2013. For the first quarter ended March 31, 2013, the company’s agricultural business reported revenues of $16.6 million, a decrease of 13% from $19 million in the first quarter of 2012. The decline in revenue is primarily the result of a two-month delay in the North American launch of the company’s new Outback STX Guidance System as wet weather conditions delayed in-field test completion in early 2013.

Management estimates that this delay reduced total first quarter sales by approximately $3 million, of which a portion will be realized in the subsequent quarters of 2013. North American revenue declined by 24% from the first quarter of 2012, while non-North American sales grew by 15% due to robust OEM sales. North American sales were 73% of total sales and sales to non-North American customers represented 27%.

“We had a good quarter from the standpoint of OEM and Cloud Services sales, but offset by lower revenue in U.S. Outback sales. We officially announced the availability of the Outback STX yesterday, a replacement for the successful Outback S3. Pre-sales of the STX have been encouraging and I am confident we are meeting the needs of a growing segment of auto-steer customers,” said Hemisphere GPS CEO, Rick Heiniger.

First quarter gross margin contribution was 47% or $7.7 million, compared to 47% and $9.0 million for the first quarter of 2012. Gross margin has generally been trending upward.

Operating expenses, prior to restructuring costs, decreased to $6.2 million compared to $6.5 million, prior to acquisition costs, in the first quarter of 2012, with research and development expenditures of $2.3 million unchanged year-over-year. Sales and marketing expenses of $2.3 million, declined by $0.7 million, or 28%, compared to $3 million during the first quarter of 2012, due to lower salary costs partly associated with the corporate restructuring, and more efficient spending at industry trade shows which are intensive during the first quarter.

“During this period of slow growth in global markets, we are prioritizing the bottom line in 2013 as we maximize efficiencies and streamline operations,” said Heiniger.

General and administrative expenses were $1.5 million increasing marginally from $1.3 million in 2012. Lower expenses in this area are anticipated following the completion of the Calgary office before the end of June, 2013. For the first quarter of 2013, the company reported restructuring costs of $0.2 million related to the closing of the company’s Calgary office and the pending name change to AgJunction.

The company reported net income from continuing operations of $1.5 million, compared to net income of $2.3 million in the first quarter of 2012. Net and comprehensive income, which includes $3.5 million of income from discontinued operations was $4.9 million, compared to income of $1.6 million, in the first quarter of 2012.

At March 31, 2013, the company held cash of $13.6 million compared to $2.6 million on December 31, 2012. Hemisphere, Association Member since 2004; .