C-COM Reports First Quarter Results
Revenues increased by $3.5 million and net income rose $1.7 million year-over-year;
Company maintains quarterly dividend payout - for 40 consecutive quarters;
Ottawa, Ontario--(Newsfile Corp. - April 20, 2021) - C-COM Satellite Systems Inc., (TSXV: CMI) (OTCQB: CYSNF) a leading global provider of commercial grade mobile auto-deploying satellite antenna systems, announced today its financial results for the first quarter ended February 28, 2021.
The Company has generated revenues of $4,719,279 and net income after taxes of $1,466,580, or four cents per share. This compares with revenues of $1,240,630 and a net loss after taxes of $186,573, or 0 cents per share as reported in 2020. This Q1 2021 performance represents gains of 280% and 886%, respectively, over Q1 2020's levels.
Q1's strong profitability led to a 5.9% increase in the Company's working capital. The Q1 2021 working capital of $23,801,078 compares to $22,472,963 in working capital as at November 30, 2020.
The Company paid out $493,597 in dividends during this first quarter compared to $474,586 in the first quarter of 2020 - representing a 4% increase. The Company has maintained its quarterly dividend payout while continuing to innovate and invest into the next generation of advanced antenna products.
The Company also announced the payment of its eligible quarterly dividend in the amount of $0.0125 per common share payable on May 18, 2021 to all shareholders of record as of May 4, 2021. Based on the closing price of $3.61 per share on April 19th, 2021, this dividend represents a yield of 1.4% on an annualized basis. This is the Company's 40th consecutive quarterly dividend.
"In Q1 we completed the $3.4 million (USD) Manpack antenna sales order that was announced in October 2020," said Leslie Klein, President and CEO of C-COM Satellite Systems Inc. "This resulted in the Company generating its second highest quarterly profit over the past nine years-which is encouraging, given the challenges of operating during the COVID pandemic. It further confirms the world-wide demand for our high quality, cost-effective and reliable products."
Klein added: "Though 2021 will still be a challenging year for C-COM as we continue to navigate through the headwinds of the COVID-19 pandemic, we are well positioned with a healthy balance sheet and extensive inventory to help us face the evolving challenges."
"C-COM remains committed to its extensive R&D effort to develop the next generation electronically steered phased array antenna technologies in conjunction with the University of Waterloo, as well as our involvement with the Canadian/European EUREKA/PENTA alliance. Several patents from the Waterloo research project have already been filed and others are being filed. This research and development opportunity should provide C-COM with a revolutionary, patentable Ka-band antenna technology to be used with the growing number of satellite constellations being launched in the next several years," Klein concluded.
About C-COM Satellite Systems Inc.
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C-COM Satellite Systems Inc. is a pioneer and leading designer, developer, and manufacturer of transportable and mobile satellite-based antenna systems for commercial markets. The Company has developed proprietary, auto-acquisition controller technology for rapid antenna pointing to a satellite with just the press of a button, enabling Broadband Internet via Satellite across a wide range of market applications worldwide, including regions unserved or underserved by terrestrial access technologies.
C-COM has sold more than 8,500 antenna systems, in over 100 countries, through a dedicated dealer network that provides service to a wide range of vertical markets such as Oil & Gas Exploration, Military Communications, Disaster Management, SNG, Emergency Communications, Cellular Backhaul, Telemedicine, Mobile Education, Government Services, Mobile Banking, and others. The Company's iNetVu® brand is synonymous with high quality, reliability, and cost-effectiveness.
C-COM is in late-stage development of a potentially revolutionary Ka-band, electronically steerable, modular, conformal, flat panel phased array antenna. In cooperation with the University of Waterloo, C-COM is engaged in the design of this unique antenna with the intent of providing low-cost, high-throughput mobility applications over satellite for land, airborne and maritime verticals. For additional information please visit www.c-comsat.com.
iNetVu® is a registered trademark of C-COM Satellite Systems Inc.
The Company is publicly traded on the Canadian Venture Exchange (TSXV: CMI) and on the US OTC Exchange (OTCQB: CYSNF).
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Statements about C-COM's expectations as to its performance after the COVID-pandemic and its intentions with respect to its Ka-band antenna version all contain forward-looking information. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. The COVID pandemic may last longer than expected or C-COM's preparations may not translate into expected performance for any number of reasons, some of which are beyond C-COM Satellite Systems' control. Anticipated benefits of the new technology may not be realized, and new products and services may not be released or, if released may not gain market acceptance. Any of those events and others could have an effect on future performance and C-COM Satellite Systems Inc.'s ability to achieve the results mentioned above. These forward-looking statements are made as of the date hereof and C-COM Satellite Systems Inc. does not assume any obligation to update or revise them to reflect new events or circumstances. Readers are directed to the risk factors associated with the business of C-COM Satellite Systems in the company's most recent MD&A available at www.SEDAR.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/80920