C-COM Satellite Systems Inc.

C-COM Satellite Systems Inc.

March 23, 2010 10:57 ET

C-COM Reports Sales Increase and Profits in Fiscal 2009, Announces One Time Dividend

OTTAWA, ONTARIO--(Marketwire - March 23, 2010) -

2009 revenues increase by 1.7% to $9,157,789;

Operating Profit increases 18.2% to $1,761,588;

Net Profit drops 47.2% to $1,315,068 or 4 cents per share;

C-COM Satellite Systems Inc. (TSX VENTURE:CMI) ("C-COM" or the "Company") the leading global provider of mobile auto-deploying satellite antenna systems, today announced financial results for the fiscal year ended November 30, 2009.

"We have closed our fiscal 2009 with a slight increase in sales over the same period last year and maintained our profitable position" said Leslie Klein, President and CEO of C-COM. "Revenues have increased by 1.7% to $9,157,789 net profit was $1,315,068 or 4 cents per share representing a decrease of 47.2% compared with results from last year when total revenues were $9,006,416 and there was a net profit of $2,491,948 or 8 cents per share." 

The Company generated slightly higher revenues while at the same time reducing its cost of goods sold by 5% when compared to last year's results.

C-COM had a foreign exchange loss of $417,667 compared to a gain of $535,183 for the same period in 2008, due to the strengthening of the Canadian dollar against the United States dollar. In addition a higher income tax provision of $594,013 in 2009 has been recorded as compared to $270,963 in 2008; all these factors have contributed to the reduction of the net profit. 

The fourth quarter of fiscal year 2009 was the 23rd consecutive profitable quarter for the Company.

The working capital of the Company has increased by 20.6% to $7,062,159 at fiscal year end of November 30, 2009 as compared to $5,854,943 at November 30, 2008.

The Company continues to remain free of long term debt, except for an accrual for future income tax payable due to expected future earnings.

"We believe that the revenue growth and profitability during fiscal year 2009 are directly attributable to the worldwide acceptance and corresponding increase in sales of our iNetVu® Mobile auto-deploying antenna systems. Our customer base for these products has been steadily increasing and continues to significantly contribute to our revenue growth" said Leslie Klein, President and CEO of C-COM.

C-COM is also pleased to announce that the board of directors has declared a one-time special dividend on its common shares in the amount of $0.02 per common share payable on Tuesday April 20, 2010 to all common shareholders of record as of Tuesday April 6, 2010. This dividend is the first in the Company's history.

"We are pleased that consistent profitable quarters have brought us to the point where the company can reward its loyal shareholders with this special dividend." said Leslie Klein, President and CEO of C-COM.

About C-COM Satellite Systems Inc.

C-COM Satellite Systems Inc. is a leader in the development and deployment of commercial grade mobile satellite-based technology for the delivery of two-way high-speed Internet, VoIP and Video services into vehicles. C-COM has developed a unique proprietary Mobile auto-deploying (iNetVu®) antenna that allows the delivery of high-speed satellite based Internet services into vehicles while stationary virtually anywhere where one can drive. The iNetVu® Mobile antenna has also been adapted to be deployable from transportable platforms. The company's satellite-based products and services deliver high-quality, cost-effective solutions for both fixed and mobile applications throughout the world. More information is available at: www.c-comsat.com

iNetVu® is a registered trademark of C-COM Satellite Systems Inc. 

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. New orders anticipated by C-COM Satellite Systems Inc. may not be received and current orders may be cancelled. 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.

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.

Contact Information

  • C-COM Satellite Systems Inc.
    Investor Relations
    613-745-4110 ext. 4950
    613-745-1172 (FAX)