March 11, 2010 / 11:37 PM / 8 years ago

UPDATE 2-Com Dev Q1 earnings trail estimates

* Q1 EPS C$0.03 vs est C$0.05

* Q1 rev C$56.7 mln vs est C$59.7 mln

* Says sees FY rev growth of 10 pct over last year (Adds conference call details)

March 11 (Reuters) - Canadian satellite technology company Com Dev International (CDV.TO) posted first-quarter earnings that missed estimates, hurt by lower margins and higher costs, but said it saw a better year ahead.

“By year-end, we will have delivered record orders, revenue growth of at least 10 percent, gross margins back in our target range of mid-to high 20s and net margins well above what we saw in the first quarter,” Chief Executive John Keating said on a call with analysts.

The company, whose gross margins dropped to 24 percent from 26 percent, said lower margins in the quarter are a seasonal trend affected by reduced number of working days.

Com Dev said it expected sequentially higher revenue for the second quarter and further improvement in the second half of the year.

For the first quarter, the company posted net income of C$2.2 million, or 3 Canadian cents a share, compared with C$4.4 million, or 6 Canadian cents a share, in the year-ago period.

Revenue for the quarter rose to C$56.7 million from C$56.5 million.

Analysts on average, expected the company to earn 5 Canadian cents a share on revenue of C$59.7 million, according to Thomson Reuters I/B/E/S.

The company, which makes subsystems for use in commercial, civil and military satellites, said backlog as on Jan 31 was C$157 million, compared with C$189 million, in the year-ago quarter.

New orders for the quarter totaled C$51 million, compared with C$88 million, a year earlier, the company said.

“Even though the total number of satellites ordered and expected to be ordered in 2009 and 2010 is lower than both 2007 and 2008, those satellites are on average bigger and have more transponders,” the company added.

Shares of the Cambridge Ontario based company were trading down about a percent at C$3.59 Thursday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Jarshad Kakkrakandy and Gopakumar Warrier)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below