OTTAWA, ON--(Marketwired - July 19, 2016) - C-COM Satellite Systems Inc. (TSX VENTURE: CMI), a leading global provider of mobile auto-deploying satellite antenna systems, announced today financial results for its second quarter ended May 31, 2016.
The company has generated revenues of $1,804,131 and a net after tax profit of $15,811 or 0 cents per share. This compared to revenues of $3,101,579 and a net after tax profit of $313,201 or 1 cent per share as reported in Q2 2015, representing a decrease of 41.8% and a decrease of 94.6% respectively.
The working capital of the Company has decreased by 0.3% to 19,922,385 at May 31, 2016 as compared to $19,983,993 at May 31, 2015.
The Company also announced the payment of its quarterly eligible dividend in the amount of $0.0125 per common share payable on August 18, 2016 to all shareholders of record as of August 4, 2016. Based on the closing price of $1.16 per share on July 18, 2016, this dividend represents a yield of 4.31% on an annualized basis. This is the Company's 21st consecutive quarter of profitability and 17th consecutive dividend paying quarter. The Company ended the quarter with a strong cash position of over $15 Million and free of debt.
"C-COM continues to persevere in the face of strong global macroeconomic headwinds," said Leslie Klein, President and CEO of C-COM Satellite Systems Inc. "The quarter was disappointing, but the numbers reflect some delays in orders that have already been booked into Q3. Weakness in North America, Europe and Latin America, as each of the regions face their own dilemmas, weighed on sales," Klein continued.
The company did note some uptick in orders and prospects from the extremely quiet Oil & Gas markets, as well as a minor resurgence in Asia and new sales from parts of Africa that have never ordered mobile antenna systems.
"The company remains in a very strong financial position and we continue to push resources towards R&D for our extremely innovative, and potentially game changing, future antenna design. We remain very excited about both the short and long term prospects of our business, and the marketplace in general," Klein continued.
C-COM continues to develop new products for new markets and is expanding its worldwide reseller network for its proprietary iNetVu® Mobile antenna systems. One of the new products the Company is developing is an in-motion antenna, which will deliver broadband Internet over satellite into vehicles and trains while in full motion. This new product will work with the most advanced Ka and Ku band high throughput satellites. C-COM also continues to establish new partnerships with companies around the world interested in combining the capabilities of the iNetVu® antennas with the products and services they offer.
About C-COM Satellite Systems Inc.
C-COM Satellite Systems Inc. is a leader in the development, manufacture 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 number of proprietary Mobile auto-deploying (iNetVu®) antennas that deliver broadband over satellite 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. More than 7000 C-COM antennas have been deployed in 103 countries around the world in vertical markets such as Oil & Gas Exploration, Military Communications, Disaster Management, SNG, Emergency Communications, Cellular Backhaul, Telemedicine, Mobile Banking, and others. The Company's satellite-based products are known worldwide for their high quality, reliability and cost-effectiveness.
C-COM is also involved in the design and development of a new generation of Ka-band (communications on the move) antennas, which will deliver satellite broadband solutions into vehicles while in motion. More information is available at: www.c-comsat.com
iNetVu® is a registered trademark of C-COM Satellite Systems Inc.
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.
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 under development may not be released or 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.