Com Dev improves Q3 earnings to $5.1M despite slight drop in revenue

CAMBRIDGE, Ont. - Com Dev International Ltd. (TSX:CDV) says improved gross margins help the company increase net earnings in the third quarter despite a slight drop in revenue.

The Ontario-based supplier of subsystems and other components and services to satellite prime contractors and others says net income attributable to shareholders in the latest period was $5.1 million or seven cents per share.

That was up from $4 million or five cents per share in the same year-earlier period even as revenue slipped to $54.2 million from $54.5 million.

The increase was a result of higher gross margin, with lower other expenses and a higher foreign exchange gain offsetting higher research and development costs.

"The net income attributable to shareholders (also) reflects the company's consolidated income, adjusted by 27 per cent minority interest of exactEarth's net loss in the data services segment," the company added in its earnings release Friday.

CEO Michael Pley said revenue was down slightly because of fewer satellites being awarded in the first half of the year.

"Despite this, we achieved solid growth in net income and gross margin," Pley added. "Announcements of new satellites have increased in the second half of the year which, as these are awarded, we expect will translate into revenue growth later this year and into the next fiscal year."

Com Dev, with a staff of 1,300 and facilities in Canada, the United Kingdom and the United States, is a leading global provider of space hardware and services. It designs, manufactures and integrates advanced products, subsystems and microsatellites that are sold to major satellite prime contractors, government agencies and satellite operators, for use in communications, space science, remote sensing and defence applications.