Com Dev revenue up 11% in Q1; space hardware, services company profit also up

CAMBRIDGE, Ont. – Com Dev International Ltd. (TSX:CDV) is reporting higher revenue and profits in its fiscal 2013 first quarter.

The Ontario-based supplier of space hardware and services said Monday that net income attributable to shareholders in the three months ended Jan. 31 was $4.6 million or six cents per share, up from $3.6 million or five cents in the same 2012 period.

The company said higher gross profit margins as well as lower interest, tax and other expenses were behind the improvement in the bottom line.

Revenue rose almost 11 per cent to $52.3 million from $47.2 million.

“We are very pleased with the growth in earnings and gross margins in the first quarter of fiscal 2013, which reflects the results of our focus on profitability and sustainability without any legacy issues,” president and CEO Michael Pley said in the company’s earnings release.

“As well, we have secured new contracts in all of our divisions which will contribute to continued growth.”

The revenue split between the three market segments was 44 per cent commercial, 34 per cent civil and 22 per cent military, compared with a 58/26/16 split in 2012, Com Dev said.

“It is important to note that communication satellite programs are increasingly being seen in the civil segment as emerging country national governments use satellites as an efficient means to provide communications infrastructure,” it added.

Com Dev received new orders totalling $61.8 million in the quarter, of which 58 per cent were commercial, 41 per cent were civil and one per cent were military.

Order backlog at Jan. 31 was $148 million, compared with $125.3 million at the end of the 2012 first quarter. Backlog was split 43 per cent commercial, 39 per cent civil and 18 per cent military.

With facilities in Canada, the United Kingdom and the United States, Com Dev manufactures advanced subsystems and microsatellites that are sold to major satellite prime contractors, government agencies and satellite operators, for use in communications, space science, remote sensing and defence applications.

Com Dev’s majority-owned subsidiary, exactEarth Ltd., provides satellite data services.