C-COM Satellite Systems Inc., a leading global provider of mobile auto-deploying satellite antenna systems, announced today its financial results for the third quarter ended August 31, 2020.
The Company generated revenues of $1,773,918 and net after tax income of $210,856 or 1 cent per share. This compared with revenues of $1,453,446 and a net after tax loss of $346,290 or -1 cent per share for Q3, 2019 - representing increases of 22% and 161% respectively.
The working capital of the Company decreased by 3.4% to $21,620,236 at August 31, 2020 as compared to $22,383,369 at November 30, 2019.
The Company paid out $480,576 in dividends during this second quarter compared to $472,466 in the third quarter of 2019, representing a 1.7% increase. The Company has maintained its quarterly dividend payout while continuing to innovate and invest in the next generation of advanced antenna products.
The Company also approved the payment of its eligible quarterly dividend in the amount of $0.0125 per common share payable on November 17, 2020 to all shareholders of record as of November 3, 2020. Based on the closing price of $2.95 per share on October 19th, 2020, this dividend represents a yield of 1.69% on an annualized basis. This is the Company’s 38th consecutive quarterly dividend.
“In spite of the continuing headwinds caused by COVID-19, and low demand from the oil and gas sector, the Company posted its highest quarterly revenue during FY2020 and generated a quarterly profit ,” said Dr. Leslie Klein, President & CEO of C-COM Satellite Systems Inc.
“Q3’s improved performance is encouraging – nevertheless, the global pandemic will continue to make global business challenging,” Klein continued. “C-COM’s healthy balance sheet, extensive inventory, new product rollouts and persistent innovation should position us well to mitigate such uncertainty,” Klein added.
“The space markets continue to adapt and will emerge from the impact of the COVID pandemic with some novel and unique technologies. For instance, a new vertical 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,” Klein said. “We expect this new market to generate incremental revenue for the Company,” he added.
“C-COM remains committed to our investment in R&D so that we can continue to launch innovative technology products over the coming years. This was demonstrated in August with our announcement of $1 million in funding from the Canadian Space Agency and our decision to join an international consortium to develop the next generation of millimetre wave phased array modules for 5G+ and satellite V-band frequencies,” Klein also added,
“The Company is also involved in extensive R&D with the University of Waterloo to eventually provide C-COM with a revolutionary, patentable Ka-band antenna technology to be used with the growing number of LEO constellations being launched in the next several years. This modular and conformal antenna technology is designed to be mass producible and be compatible with 5G and other developing millimeter wave technologies.” Klein concluded.