C-COM Satellite Systems Inc., a leading global provider of commercial grade mobile auto-deploying satellite antenna systems, announced today its financial results for the first quarter ended February 28, 2022.
The Company has generated revenues of $3,000,052 and net income after taxes of $593,575, or one cent per share. This compares with revenues of $4,719,279 and net income after taxes of $1,487,047, or 4 cents per share for Q1, 2021 (as restated).
The Company’s Q1 2022 working capital of $24,945,125 compares to $24,597,032 in working capital as of November 30, 2021, representing a 1.4% increase.
The Company paid out $509,268 in dividends during this first quarter compared to $493,597 in the first quarter of 2021, a 3% increase. The Company has maintained its quarterly dividend payout while continuing to innovate and invest into the next generation of advanced antenna products.
The Company also announced the payment of its eligible quarterly dividend in the amount of $0.0125 per common share payable on May 17, 2022, to all shareholders of record as of May 3, 2022. Based on the closing price of $1.86 per share on April 18th, 2022, this dividend represents a yield of 2.7% on an annualized basis. This is the Company’s 43rd consecutive quarterly dividend.
“Though Q1 revenues were lower than last year, we are still encouraged by the continued recovery following two years of the pandemic,” said Leslie Klein, President and CEO of C-COM Satellite Systems Inc. “The Company’s first quarter 2022 revenues were the third highest Q1 sales in the last decade.”
“Our gross margin of 61% 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 2022 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 rapidly increasing. C-COM also anticipates improved demand from energy and commodity exploration which have not been very active over the past few years.”
Dr. Klein concluded: “2022 will mark the first year since 2019 that C-COM will attend a full slate of international trade shows in-person. Feedback from last month’s Satellite 2022 show in Washington D.C. confirmed that our market is ready to re-engage.
The response to our revolutionary Electronically Steered Phased Array (ESA) antenna was significant. In development for more than 5 years, this prototype antenna passed several successful GEO satellite tests over Telesat Anik F3 in 2021. The market for ESA is anticipated to be worth billions of dollars over the next 5 years and C-COM will be well positioned to benefit from this immense growth.”