C-COM Satellite Systems Inc.

C-COM Satellite Systems Inc.

March 29, 2011 09:31 ET

C-COM Reports Increase in Sales and Profits in Fiscal 2010

- Revenues increase by 14.4% to $10,475,614;

- Operating Profit increases 57.6% to $2,777,015;

- Net Profit increases 40.4% to $1,846,037 or 5 cents per share;

- Gross Margin is improved by 2.7% year over year;

OTTAWA, ONTARIO--(Marketwire - March 29, 2011) - C-COM Satellite Systems Inc. (TSX VENTURE:CMI), a leading global provider of mobile auto-deploying satellite antenna systems, today announced financial results for the fiscal year ended November 30, 2010.

"We have closed our fiscal 2010 with an increase in both sales and operating profits over the same period last year" said Leslie Klein, President and CEO of C-COM Satellite Systems Inc. "Revenues have increased by 14.4% to $10,475,614 and we generated a net after tax profit of $1,846,037 or 5 cents per share, representing an increase of 40.4% from last year when total revenues were $9,157,789 and there was a net after tax profit of $1,315,068 or 4 cents per share." 

The Company generated higher revenues while at the same time reducing its cost of goods sold by 2.7% when compared to last year's results.

C-COM had an income tax provision of $823,767 in fiscal 2010, versus $594,013 in fiscal 2009. The Company had sufficient investment tax credits and research and developments costs to reduce its tax liability to zero for the fiscal year ended November 30, 2010.

The fourth quarter of fiscal year 2010 was the 27th consecutive profitable quarter for the Company.

The working capital of the Company has increased by 25.8% to $8,885,696 at November 30, 2010 as compared to $7,062,159 at November 30, 2009.

"The growth and profitability during fiscal year 2010 are largely attributable to the worldwide acceptance and corresponding increase in sales of our iNetVu® Mobile auto-deploying antenna systems, particularly to the oil and gas exploration sector worldwide. 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 Satellite System Inc.

The financial results of fiscal year 2010 were achieved despite the fact that none of the units of the large Asian order announced in July 2010 had been shipped by year end. Although C-COM had the equipment ready for delivery on time by November 30, 2010, and has received approximately $861,000 to date in deposits ($707,000 of which was received by November 30, 2010 and an additional $154,000 was received December 2010). To date, only approximately $83,000 worth of equipment has been shipped of the $2.3 million order, which shipped in December 2010. C-COM is currently in talks with its reseller in an attempt to determine a schedule for payment and delivery of the remainder of the order.

C-COM is continuing to expand its worldwide reseller network for its proprietary iNetVu® Mobile technology products and establishing new partnerships with companies interested in combining the capabilities of the iNetVu® with the products and services they offer.

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 antennas have also been adapted to be airline checkable and easily transportable. 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.

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