logo-loader

Com Dev reports lower Q3 profit; revenue misses expectations

Published: 22:52 05 Sep 2014 AEST

telecommunictions_350_5409b2b44537b

Com Dev International (TSE:CDV), the maker of satellite parts, reported lower profit in its fiscal third quarter as revenue fell 6.3 percent, missing expectations.

Net income fell to C$3.1 million, or C$0.05 per share, in the three months ended July 31, from C$4.7 million, or C$0.07 per share, in the year-earlier period, the Cambridge, Ontario-based company said in a statement today.

Third-quarter revenue decreased to $50.8 million from $54.2 million in the same quarter last year. That result missed the $55.7 million average estimate of four analysts.

The company said results were impacted by continuing U.S. government budget cuts.

"While revenues are still constrained by U.S. budget pressures, demand for commercial communication satellites remains strong with 11 new satellite projects awarded in the third quarter," Michael Pley, chief executive officer of Com Dev, said in the statement.

The company said its order backlog slipped 12 percent to C$115.5 million in the quarter.

The board of directors declared a dividend of C$0.03 per share to be paid on September 30 to shareholders of record on September 15.

The company, which has a staff of 1,200, has won contracts to supply its equipment on over 900 spacecraft, according to the statement.

Shares closed up 0.7 percent at C$4.12 in Toronto yesterday, stretching this year's gain to 10 percent.

The stock has 2 strong buy, 4 buy and 1 hold recommendations from analysts.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

12 hours, 58 minutes ago