Company maintains dividend payout – for 43rd consecutive quarter.
OTTAWA, April 19, 2022 – C-COM Satellite Systems Inc., (TSXV: CMI and 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, 2022.
The Company has generated revenues of $3,000,052 and net income after taxes of $593,575, or one cent per share. This compares with revenues of $4,719,279 and net income after taxes of $1,487,047, or 4 cents per share for Q1, 2021 (as restated).
The Company’s Q1 2022 working capital of $24,945,125 compares to $24,597,032 in working capital as of November 30, 2021, representing a 1.4% increase.
The Company paid out $509,268 in dividends during this first quarter compared to $493,597 in the first quarter of 2021, a 3% 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 17, 2022, to all shareholders of record as of May 3, 2022. Based on the closing price of $1.86 per share on April 18th, 2022, this dividend represents a yield of 2.7% on an annualized basis. This is the Company’s 43rd consecutive quarterly dividend.
“Though Q1 revenues were lower than last year, we are still encouraged by the continued recovery following two years of the pandemic,” said Leslie Klein, President and CEO of C-COM Satellite Systems Inc. “The Company’s first quarter 2022 revenues were the third highest Q1 sales in the last decade.”
“Our gross margin of 61% was also very healthy, particularly since C-COM has not been immune from the cost pressures brought about by the worldwide supply chain disruptions,” continued Klein. “We were also fortunate to enter 2022 with a strong inventory position for products which are presently in high demand.”
Klein added: “We remain cautiously optimistic about the future. The need for emergency communications and cellular backhaul has been rapidly increasing. C-COM also anticipates improved demand from energy and commodity exploration which have not been very active over the past few years.”
Dr. Klein concluded: “2022 will mark the first year since 2019 that C-COM will attend a full slate of international trade shows in-person. Feedback from last month’s Satellite 2022 show in Washington D.C. confirmed that our market is ready to re-engage.
The response to our revolutionary Electronically Steered Phased Array (ESA) antenna was significant. In development for more than 5 years, this prototype antenna passed several successful GEO satellite tests over Telesat Anik F3 in 2021. The market for ESA is anticipated to be worth billions of dollars over the next 5 years and C-COM will be well positioned to benefit from this immense growth.”
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 10,000 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 revolutionary Ka-band, electronically steerable, flat panel phased array antenna system, in cooperation with the University of Waterloo, with the intent of providing low-cost, high-throughput mobility applications over satellite for land, airborne and maritime applications. 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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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. Statements about C-COM’s expectations as to its ability to weather the challenges it faces, future prospects, growth and revenue, and statements about its electronically steered phased array antenna, including the potential for it become a commercially available product are all forward-looking information. Several factors could cause actual events, performance, or results to differ materially from the events, performance and results discussed in the forward-looking statements. Anticipated benefits of the new technology may not be realized within the time frames anticipated or at all, and new products and services may not be released or, if released may not gain market acceptance. Any of those events and others could influence 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.