Revenues increase by 3.3% to $13,977,909;
Operating Profit increases 23.8% to $3,614,282;
Net Profit increases 23.6% to $2,843,092 or 8 cents per share;
OTTAWA, March 16, 2020 – C-COM Satellite Systems Inc. (TSXV: CMI, OTC: CYSNF), a leading global provider of mobile auto-deploying satellite antenna systems, announced today financial results for the fiscal year ended November 30, 2019.
The Company has generated revenues of $13,977,909 and a net after tax profit of $2,843,092 or 8 cents per share. This compared with 2018 total revenues of $13,527,368 and a net after tax profit of $2,299,501 or 6 cents per share, representing an increase of 3.3% and 23.6% respectively.
The working capital of the Company has increased by 8.8% to $22,383,369 at November 30, 2019 as compared to $20,580,939 at November 30, 2018. The Company paid out $1,882,033 in quarterly dividends during fiscal 2019 compared to $1,851,878 in fiscal 2018, representing a 1.6% increase. Based on its closing price of $1.89 per share on March 13, 2020, the quarterly dividend provided a yield of 2.65% per annum.
Results for Q4 2019 saw revenues increase by 40.6% to $7,009,616 when compared with results from the same period last year, when total revenues were $4,987,090. The net after tax profit increased 83.8% to $2,497,636 compared with the same period last year when the after-tax profit was $1,358,665.
“The company delivered better sales and higher profitability in fiscal year 2019 than the previous year. In 2019 we finished the development of our new Manpack series antenna systems and saw the first large order for over 100 units delivered to our reseller in Japan for cellular backhaul use. Our new Manpack series antennas are generating very strong interest from new markets segments around the world. These small, one-case, one man back-pack like antennas are designed to be carried by a single person and assembled in about eight minutes without the use of tools.” said Leslie Klein, President & CEO of C-COM.
“C-COM’s flagship iNetVu® mobile antenna line also continues to gain worldwide acceptance and are operating reliably from the most Northern areas of Canada and Russia to the deserts of Australia and Saudi Arabia.” Klein continued.
Klein added: “A new vertical market for tracking LEO’s (Low Earth Orbit), Smallsats and CubeSats is emerging and C-COM has developed advanced tracking algorithms for this market for use with its existing Flyaway antennas. These new satellites operate in low earth orbit and deliver large amounts of data. C-COM has deployed several antenna systems with these new entrants and has demonstrated successful tracking of these fast-moving satellites. We expect this new market to generate incremental revenue for the company in 2020 and beyond.”
“The Company is also involved in extensive R&D of next generation antenna technologies in conjunction with the University of Waterloo. Several patents from this research project have already been filed and we expect to file others before research is complete. This effort is expected to provide C-COM with a revolutionary, patentable Ka-band antenna technology to be used with the growing number of HTS’s (High Throughput Satellites) being launched in the next several years. This intelligent scalable and conformal antenna technology is designed to be mass producible at a reasonable price and be compatible with 5G and other developing millimeter wave technologies.” Klein concluded.
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 announces the retirement of Jim Fowles as CFO. Mr. Fowles has been with C-COM for 15 years and will be retiring with effect after the filing of the year end financial statements. Mr. Fowles will be replaced by Art Slaughter, CPA, CFA. Mr. Slaughter brings to C-COM over 10 years of CFO experience and expertise in corporate development and finance across a number of industries and banking.
“On behalf of the board of directors and everyone at C-COM, I express our thanks to Jim Fowles for all of his service to the Company over the past 15 years. Jim will be missed,” said Leslie Klein. “At the same time, we are excited to have Art Slaughter join us as CFO and look forward to working with him going forward”.
All officer appointments are subject to TSX Venture Exchange approval.
About C-COM Satellite Systems Inc.
C-COM Satellite Systems Inc. is a pioneer and world leader in the design, development, and manufacture of transportable and mobile satellite-based antenna systems. 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.
iNetVu® is a registered trademark of C-COM Satellite Systems Inc.
The Company is publicly traded on the Canadian Venture Exchange (TSXV: CMI; CVE: CMI) and on the US OTC Exchange (OTC: CYNSF).
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.
Forward Looking Statements
This news release contains forward-looking information. These statements relate to future events or future performance and reflect management’s current expectations and assumptions. 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. For example, statements relating to future technology and product offerings, the anticipated results of research and development and the timing of such results and the anticipation of incremental revenues being derived from such efforts are all forward looking statements. New orders anticipated by C-COM Satellite Systems Inc. may not be received and current orders may be cancelled. Research and development efforts may not result in commercially viable products in the time frame anticipated if at all. New products and services released may not gain market acceptance. 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. 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.