45th Consecutive Quarterly Dividend
Ottawa, Ontario--(Newsfile Corp. - July 18, 2023) - C-COM Satellite Systems Inc., (TSXV: CMI) (OTCQB: CYSNF) a leading global provider of commercial grade mobile auto-deploying satellite antenna systems, announced today its financial results for the second quarter ended May 31, 2023.
The Company has generated revenues of $2,577,918 and net income after taxes of $341,737, or one cent per share. This is a significant improvement from C-COM's Q1 2023 sales of $683,949 and a net loss of $176,135.
The gross profit margins in Q2 were above average and expenses were reduced by 5% from Q2 2022.
The Company also announced the payment of an eligible quarterly dividend in the amount of $0.0125 per common share payable on August 15, 2023, to all shareholders of record as of August 1, 2023. Based on the closing price of $1.17 per share on July 17th, 2023, this dividend represents a yield of 4.3% on an annualized basis.
The Company paid out $522,330 in dividends during the second quarter of 2023. This compares to $511,018 paid in the second quarter of 2022, representing a 2% increase. The Company has maintained its quarterly dividend payout while continuing to innovate and invest into the next generation of advanced antenna products.
"Though Q2 2023 revenues were lower than last year's, we are still encouraged by the improvement over Q1's sales," said Leslie Klein, President and CEO of C-COM.
"Our gross margin of 60% was also very healthy, particularly since C-COM has not been immune from the cost pressures brought about by the worldwide supply chain disruptions," continued Klein. "We were also fortunate to enter 2023 with a strong inventory position for products which are presently in high demand."
Klein added: "We remain cautiously optimistic about the future. The need for emergency communications and cellular backhaul has been growing. C-COM also anticipates improved demand from energy and commodity exploration."
Dr. Klein concluded: "Completion of the development and commercialization of our next generation Ka-band Electronically Steered Antenna System (ESA) remains C-COM's primary R&D focus and our R&D team made good progress during Q2. The new antenna is targeted for use with GEO, LEO and MEO constellations to deliver on the move and "always on" connectivity. We are on track to complete the prototype of a large 4K version of our scalable Ka-band antenna design and in the process of selecting companies to manufacture the major components."
About C-COM Satellite Systems Inc.
C-COM Satellite Systems Inc. is a pioneer and world leader in the design, development, and manufacture of transportable and mobile satellite-based antenna systems. The Company has developed proprietary, auto-acquisition controller technology for rapid antenna pointing to a satellite with just the press of a button, enabling Broadband Internet via Satellite across a wide range of market applications worldwide, including regions unserved or underserved by terrestrial access technologies.
C-COM has sold more than 10,000 antenna systems, in over 100 countries, through a dedicated dealer network that provides service to a wide range of vertical markets such as Oil & Gas Exploration, Military Communications, Disaster Management, SNG, Emergency Communications, Cellular Backhaul, Telemedicine, Mobile Education, Government Services, Mobile Banking, and others. The Company's iNetVu® brand is synonymous with high quality, reliability, and cost-effectiveness.
C-COM is in late-stage development of a revolutionary Ka-band, electronically steerable, flat panel phased array antenna system, in cooperation with the University of Waterloo, with the intent of providing low-cost, high-throughput mobility applications over satellite for land, airborne and maritime applications. For additional information please visit www.c-comsat.com.
iNetVu® is a registered trademark of C-COM Satellite Systems Inc.
The Company is publicly traded on the Canadian Venture Exchange (TSXV: CMI) and on the US OTC Exchange (OTCQB: CYSNF).
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Forward-Looking Statements
This news release contains forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Statements about C-COM's expectations as to its ability to weather the challenges it faces, future prospects, growth and revenue, and statements about its electronically steered phased array antenna, including the potential for it become a commercially available product are all forward-looking information. Several factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Anticipated benefits of the new technology may not be realized within the time frames anticipated or at all, and new products and services may not be released or, if released may not gain market acceptance. Any of those events and others could influence 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. Readers are directed to the risk factors associated with the business of C-COM Satellite Systems in the company's most recent MD&A available at www.SEDAR.com.
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