August 26, 2010 / 8:01 PM / 7 years ago

UPDATE 1-Com Dev sees Q3 loss on higher costs; shares down

* Sees Q3 net loss of C$1.7 mln vs net income of C$5.2 mln

* Sees rev down 15 percent

* Shares down 12 percent

Aug 26 (Reuters) - Canadian satellite technology company Com Dev International Ltd CDV.TO expects to post a quarterly loss in three years, hurt by higher costs, sending its shares down as much as 12 percent.

For the third quarter, the designer and manufacturer of space hardware subsystems expects to post a loss of about C$1.7 million, compared with a net income of C$5.2 million, last year.

The company also expects revenue to fall 15 percent to about C$52 million.

Analysts on average were expecting the company to earn 5 Canadian cents a share, on revenue of C$61.8 million, according to Thomson Reuters I/B/E/S.

The company, which had earlier said it expects minimal revenue growth for 2010, now expects it to be 5 percent lower than it was in 2009.

“Our results in the third quarter were affected by continuing cost growth on the five programs that have recently proved troublesome for us,” said Chief Executive John Keating.

The company said that the programs had a negative gross margin impact of C$6.7 million in the quarter, but refused to disclose any further details.

However, the programs are 86 percent completed to represent a steadily decreasing proportion of its revenues, falling from 5 percent from the last quarter to 2 percent of revenues by the second half of next year, it added.

Shares of the company were trading down 12 percent at C$1.72 Thursday on the Toronto Stock Exchange. They have lost 25 percent in the last three months. (Reporting by Aftab Ahmed in Bangalore; Editing by Vyas Mohan) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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