Quarterly Dividend Payment Declared; 24th Consecutive Quarterly Dividend
OTTAWA, April 24, 2018 – C-COM Satellite Systems Inc. (TSXV: CMI), a leading global provider of mobile auto-deploying satellite antenna systems, announced today financial results for the first quarter ended February 28, 2018.
The Company has generated revenues of $1,816,142 and a net after tax profit of $16,862 or 0 cents per share. This compared with revenues of $1,485,410 and a net after tax profit of $1,635 or 0 cents per share as reported in 2017, representing an increase of 22.3% and 931.3% respectively.
The working capital of the Company decreased by 2.1% to $19,280,977 at February 28, 2018 as compared to $19,688,134 at February 28, 2017.
Research and Development expenses increased to $371,701 in this quarter as compared to $144,791 at February 28, 2017, representing a 156.7% increase over the same period. These expenses were incurred in the development of a next generation phased array electronically steerable antenna technology, a project funded in part by NSERC and involving an eminent engineering faculty team at the University of Waterloo, a leading Canadian University.
The Company paid out $459,432 in dividends during the first quarter compared to $456,682 in the first quarter of 2017 representing a 0.6% increase. The Company has maintained its quarterly dividend payout while continuing to innovate and invest into the next generation of advanced antenna products.
C-COM also announced the payment of its eligible quarterly dividend in the amount of $0.0125 per common share payable on May 22, 2018 to all shareholders of record as of May 8, 2018. Based on the closing price of $1.13 per share on April 23, 2018, this dividend represents a yield of 4.42% on an annualized basis. This is the Company’s 24th consecutive quarterly dividend and it’s 28th consecutive profitable quarter.
“We are pleased with the increase in sales over the same period last year, which is an indicator of improved market conditions”, said Leslie Klein, President & CEO of C-COM. “We are starting to see an economic turnaround, especially in the oil and gas sector which has been a significant user of our antenna systems. With oil prices stabilizing, we expect to see a continual increase of orders from this important market segment”, Klein continued.
“In 2018 C-COM will be starting production of our new SATCOM-on-the-MOVE antenna, which is generating worldwide interest and will open new mobility markets and contribute incremental revenues for the Company. The antenna is presently undergoing road tests and satellite operator approvals. We have also added two new cost-effective, carbon fibre Manpack (backpack) antennas to our expanding list of products, which are now in production and expected to generate demand from Military, Emergency Responders and a number of other vertical markets”, Klein continued.
About C-COM Satellite Systems Inc.
C-COM Satellite Systems Inc. is a leader in the development, manufacture and deployment of commercial grade mobile satellite-based technology for the delivery of two-way high-speed Internet, VoIP and Video services into vehicles. C-COM has developed several proprietary Mobile auto-deploying (iNetVu®) antennas that deliver broadband over satellite into vehicles while stationary virtually anywhere where one can drive. The iNetVu® Mobile antennas have also been adapted to be airline checkable and easily transportable. More than 7000 C-COM antennas have been deployed in 103 countries around the world in vertical markets such as Oil & Gas Exploration, Military Communications, Disaster Management, SNG, Emergency Communications, Cellular Backhaul, Telemedicine, Mobile Banking, and others. The Company’s satellite-based products are known worldwide for their high quality, reliability and cost-effectiveness.
C-COM is also involved in the design and development of a new generation of Ka-band (communications on the move) antennas, which will deliver satellite broadband solutions into vehicles while in motion. More information is available at: www.c-comsat.com
iNetVu® is a registered trademark of C-COM Satellite Systems Inc.
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Forward Looking Statements
This news release contains forward-looking statements. These statements relate to future events or future performance and reflect management’s current expectations and assumptions. Forward-looking statements in this news release include statements about C-COM Satellite Systems Inc.’s expectation of increased orders from the oil and gas segment, the ability for the SATCOM-on-the-MOVE antenna to open new markets and contribute revenues, the expected demand for other products from various markets and the expectation as to the benefits and features that new products will deliver. 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. New orders anticipated by C-COM Satellite Systems Inc. may not be received and current orders may be cancelled. New products and services released may not gain market acceptance or deliver the anticipated benefits to C-COM Satellite Systems Inc and its customers. Any of those events could have an effect on future performance and C-COM Satellite Systems Inc.’s ability to achieve the results mentioned above. Please refer to C-COM Satellite Systems Inc.’s latest management’s discussion and analysis available at www.SEDAR.com for a more detailed description of the risk factors associated with the business of C-COM Satellite Systems Inc. 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.