Norsat serves global customers primarily through three business units: Sinclair Technologies, Satellite Solutions and Microwave Products. All financial results are reported in U.S. dollars and have been prepared in accordance with International Financial Reporting Standards (“IFRS”), unless otherwise stated.

Second Quarter 2013 Overview

• On April 16, 2013, Norsat acquired certain business assets and assumed certain liabilities of CVG, Incorporated (“CVG”), a US-based satellite communication systems company, for cash consideration of $0.5 million
• ​Second quarter revenue was $8.6 million, compared to $10.4 million during the same period in 2012
• Gross margin increased to 43 percent, from 42 percent in Q2 2012
• Second quarter EBITDA increased to $0.8 million, from $0.7 million in Q2 2012

“The second quarter of 2013 brought continued market challenges, with sales negatively affected by the US government’s budget sequestration and by ongoing economic uncertainty in some of our markets,” said Dr. Amiee Chan, President and CEO of Norsat.

“Total second quarter sales declined to $8.6 million, from $10.4 million a year ago, reflecting customers continuing to cut back inventory levels and delay programs. Although we have a relatively fixed cost structure, we continue to maintain strict cost discipline across our operations. We were successful in decreasing total second quarter expenses, excluding government funding and foreign exchange gains/losses, by $0.5 million, or 11%, compared to a year ago. This, in turn, helped us maintain positive EBITDA results.”

“We also continued to implement our strategy of broadening our portfolio of products and services, while diversifying our customer base. We successfully increased our market penetration in Europe, the Middle East and Latin America during the second quarter. Additionally, we acquired certain assets of a US-based satellite communication systems company, which has augmented our product portfolio and enhanced intellectual property (IP) for our Satellite Solutions and Microwave Products business units. We have now successfully transitioned the CVG assets to our Richmond, BC facility, where we are making good progress on integration. We have since accelerated development of some of our new product lines. By the end of the second quarter, we had recognized $70,000 in revenues from these new products and we are optimistic about their future prospects.” said Dr. Chan.

To read the entire financial report, access this direct link to the company's web page.