www.comdev.ca
COM DEV International Ltd. is a Canada-based company. The Company is a global designer, manufacturer and distributor of space communications and space science products and systems. COM DEV designs and manufactures advanced instruments and microwave products for space satellites, such as multiplexers, filters, switches, surface acoustic wave (SAW) devices, signal processors, satellite payloads, and micro-satellite spacecraft. The products are sold to all of the satellite prime contractors for use in commercial communications, military/defense communications and space science satellites.
Com Dev Q2 profit soars, revenues drop
Com Dev International (TSE:CDV) said late Thursday second fiscal-quarter profits surged amid higher margins, though the company posted a six percent decline in revenue.
Cambridge, Ontario-based Com Dev builds subsystems and other technology for major satellite contractors, government agencies and satellite operators.
Net earnings climbed to $5.2 million, or seven cents per share, on $50.1 million in revenue for the three months that ended April 30.
This compared to a profit of $1.3 million, or two cents per share, on $53.1 million in sales recorded a year-prior.
Analysts polled by Bloomberg had expected per-share profits of five cents, on $50.7 million in sales.
"Margins and profitability showed year-over-year improvement once again this quarter," said chief executive Michael Pley in a statement.
"A healthy level of orders in the quarter, driven by strong activity in the commercial market, positions us well to grow revenue in the coming quarters."
Segment wise, the company’s space equipment division posted sales of $47.5 million, down from $51.0 million a year earlier. The unit’s margins, however, rose to 24 percent from 22 percent.
Revenue from the data services segment rose to $2.5 million from $2.0 million, while gross margins jumped to 13 percent from eight percent.
Overall gross margin widened to 25 percent from 21 percent, thanks to stronger results in the core equipment business and progress in the data services unit, the company said.
In the second quarter, new orders won totalled $59 million, up from $28 million a year-earlier.
As of April 30, backlog stood at $134 million, plus an extra $19 million in follow-on orders expected to proceed from authorities already awarded.
The company said it expects revenue to exceed $97 million in the second half of the year by about 10 percent.
Shares rose by 0.40 percent to $2.54 each on the Toronto Stock Exchange Friday.
