C-COM Satellite Systems Inc., 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.