June 10, 2010 / 9:03 PM / in 8 years

UPDATE 2-Com Dev Q2 trails Street view on lower margins

* Q2 EPS C$0.05 vs est. C$0.06

* Revenue down 6 pct

* Sees minimal revenue growth for current fiscal year

* Expects C$45 million in follow-on orders (Adds conference call details)

BANGALORE, June 10 (Reuters) - Canadian satellite technology company Com Dev International Ltd (CDV.TO) posted quarterly results that missed estimates, partly hurt by lower margins, and said it expects the launch of its first two operational satellites in the fall.

“We now expect annual revenue growth to be minimal for the current fiscal year and gross margins to be in the mid-20 percent range,” Chief Executive John Keating said in a statement.

The company said it received new orders worth C$33 million during the quarter, of which 76 percent were commercial, 13 percent civil, and the rest military.

Com Dev said the Authorities to Proceed (ATPs) signed in the second quarter will lead to follow-on orders worth C$45 million once contract negotiations are completed.

For the second quarter, the company reported a net income of C$4.1 million, or 5 Canadian cents a share, compared with C$4.9 million, or 7 Canadian cents a share, a year earlier.

Revenue fell 6 percent to C$60.4 million.

Analysts on average were expecting earnings of 6 Canadian cents, before special items, on revenue of C$66 million, according to Thomson Reuters I/B/E/S.

The company said its gross margins were C$13 million or 22 percent of revenues, down from C$17.8 million or 28 percent of revenues a year ago.

Order backlog at the end of the quarter stood at C$128 million, compared with C$173 million a year earlier.

Shares of the Cambridge, Ontario-based company closed at C$2.33 Thursday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Roshni Menon)

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