C-COM reports a small loss due to global market conditions – driven by COVID-19 and uncertainty in the oil sector
36th Consecutive Quarterly Dividend Payment Declared;
OTTAWA, April 21, 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 first quarter ended February 29, 2020.
The Company has generated revenues of $1,240,630 and a net after tax loss of $186,573 or zero cents per share. This compared with revenues of $2,948,252 and a net after tax profit of $424,404 or 1 cent per share as reported in 2019, representing a decrease of 58% and 144% respectively.
The working capital of the Company decreased by 3.1% to $21,678,852 at February 29, 2020 as compared to $22,383,369 at November 30, 2019.
The Company paid out $474,586 in dividends during this first quarter compared to $465,257 in the first quarter of 2019 representing a 2% 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 19, 2020 to all shareholders of record as of May 5, 2020. Based on the closing price of $1.93 per share on April 20th, 2020, this dividend represents a yield of 2.59% on an annualized basis. This is the Company’s 36th consecutive quarterly dividend.
“The small loss this quarter can be directly attributed to a slowdown in our markets in Asia, who were the first to experience the abrupt impact on their economies due to the COVID-19 virus. In addition, the OPEC oil production dispute has also dampened activity with our oil sector customers” said Dr. Leslie Klein, President & CEO of C-COM Satellite Systems Inc. “The COVID-19 virus will make 2020 a challenging year for all businesses. Our healthy balance sheet, extensive inventory, and new products position us well to mitigate challenges that this year will bring. The company is considered to be an essential service, and we are working hard to maintain a “business as usual” environment. “
Klein added, “For example, our new small, Manpack series antennas—designed to be carried back-pack like by a single person, are generating very strong interest from new market segments around the world. A new vertical market for tracking LEO’s, Smallsats and CubeSats is emerging and C-COM has developed advanced tracking algorithms for this market for use with its existing Flyaway antennas. 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. This effort should provide C-COM with a revolutionary, patentable Ka-band antenna technology to be used with the growing number of HTS being launched in the next several years. This conformal antenna technology is designed to be mass producible 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 announces that despite the unprecedented public health impact of COVID-19 it will hold its annual shareholder meeting on May 1, 2020 as scheduled. C-COM is attempting to mitigate the risks to the health and safety of its community, shareholders, employees and other stakeholders by strongly encouraging shareholders to exercise their right to vote on the matters scheduled to come before the meeting by submitting proxies or voting instructions in advance of the meeting rather than attending in person. The only matters to be dealt with at the meeting are described in detail in the meeting materials mailed to shareholders and available at www.SEDAR.com. Instructions for submitting your proxy or voting instruction form were included in the notice of meeting mailed to shareholders. If you are a shareholder of C-COM and have not received a notice of the meeting in the mail, please contact the bank or brokerage through which you hold your shares to provide voting instructions. We thank all parties affected for their understanding.
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: CYSNF).
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.