Oppenheimer Has Perform on RRsat Global Communications Networks

Oppenheimer & Co. is out with a research report on RRsat Global Communications Networks Ltd. RRST and it has a Perform rating on shares. In a note to clients, Oppenheimer & Co. writes, "First the positives: revenues beat expectations; 2011 guidance was raised again; and a new centralized site in Emek HaElam, Israel, is online improving RRST's chances of signing top tier content makers. However, 3Q11 results were weighed down by currency charges, gross margin pressures, and higher opex related to site moves which resulted in adjusted EPS of $0.04, down 70% year-over-year despite revenues that were 16% better. As expected, backlog declined $9M from 2Q11, partly due to currency fluctuations but also due to changes in some contract lengths. We believe the quarterly issues can be dealt with, but the backlog declines will put pressure on medium-term earnings. Maintain Perform." Shares of RRST lost 6 cents yesterday to close at $4.57.