Revenues decrease by 53.8% to $6,455,633;
Company maintains quarterly dividend payout – for 39 consecutive quarters;
OTTAWA, March 23, 2021 – C-COM Satellite Systems Inc., (TSXV: CMI and OTCQB: CYSNF) the world’s leading provider of commercial grade mobile auto-deploying satellite antenna systems, announced today its financial results for the fiscal year ended November 30, 2020.
The Company generated revenues of $6,455,633 and incurred a net after tax loss of $94,557 (0 cents per share) in F2020. This compares to 2019 total revenues of $13,977,909 and a net after tax profit of $2,843,092 or 8 cents per share, representing decreases of 53.8% and 103.3%, respectively. Gross profit margin in 2020 improved to 58.9%, versus 58.0% in fiscal 2019.
The working capital of the Company increased by 0.4% to $22,472,963 as at November 30, 2020, compared to $22,383,369 on November 30, 2019. The Company paid out $1,922,242 in dividends during fiscal 2020 compared to $1,882,033 in fiscal 2019, representing a 2.1% increase. Based on its closing price of $3.96 per share on March 22, 2020, the annual dividend provided a yield of 1.3% per annum.
“The negative impact of the COVID pandemic on businesses around the world is well documented, and C-COM was not immune to these challenges. Nevertheless, we are well positioned for the gradual return to normalcy, with our healthy balance sheet, extensive inventory and commitment to R&D of next generation products,” said Leslie Klein, President and CEO of C-COM Satellite Systems Inc.
Klein added: “Despite the pandemic, we made significant steps forward in 2020. This included the integration of our iNetVu® 8000 series antenna controllers with new modems, the UHP-200, Gilat Capricorn 4, iDirect iQ-200 and Newtec MDM 3310 and the integration of the Comtech EF Data branded Heights™ Networking Platform with our iNetVu® 7700 series antenna controllers.”
“The Company also announced its involvement in the international EUREKA/PENTA consortium for next generation antenna technologies – while further progressing on developing an advanced flat panel, phased array antenna system with the University of Waterloo. An initial Ka-band antenna version intended to be used with the growing number of high-throughput (HTS) satellites has been successfully lab tested, and is now in the process of being field-tested over satellites. We intend to make it mass producible at a reasonable price for a wide range of applications operating over both satellite constellations (LEO, MEO and GEO), as well as over 5G wireless 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.
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. For additional information please visit www.c-comsat.com
The Company is publicly traded on the Canadian Venture Exchange (TSXV: CMI) and on the US OTC Exchange (OTCQB: CYSNF).
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. Statements about the timing of shipment of additional ordered units and the potential impacts of new technology on the industry 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. Orders may take longer to ship than anticipated and orders may be cancelled 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.