C-COM Satellite Systems Inc. (TSXV: CMI, OTC: CYSNF) has released their financial results for the fiscal year ended November 30, 2019.
The Company has generated revenues of $13,977,909 and a net after tax profit of $2,843,092 or 8 cents per share. This compared with 2018 total revenues of $13,527,368 and a net after tax profit of $2,299,501 or 6 cents per share, representing an increase of 3.3% and 23.6%, respectively.
The working capital of the Company has increased by 8.8% to $22,383,369 at November 30, 2019 as compared to $20,580,939 at November 30, 2018. The Company paid out $1,882,033 in quarterly dividends during fiscal 2019 compared to $1,851,878 in fiscal 2018, representing a 1.6% increase. Based on its closing price of $1.89 per share on March 13, 2020, the quarterly dividend provided a yield of 2.65% per annum.
Results for Q4 2019 saw revenues increase by 40.6% to $7,009,616 when compared with results from the same period last year, when total revenues were $4,987,090. The net after tax profit increased 83.8% to $2,497,636 compared with the same period last year when the after-tax profit was $1,358,665.
“The company delivered better sales and higher profitability in fiscal year 2019 than the previous year. In 2019 we finished the development of our new Manpack series antenna systems and saw the first large order for over 100 units delivered to our reseller in Japan for cellular backhaul use. Our new Manpack series antennas are generating very strong interest from new markets segments around the world. These small, one-case, one man back-pack like antennas are designed to be carried by a single person and assembled in about eight minutes without the use of tools.” said Leslie Klein, President and CEO of C-COM. He continued by stating that the firm's flagship iNetVu® mobile antenna line also continues to gain worldwide acceptance and are operating reliably from the most Northern areas of Canada and Russia to the deserts of Australia and Saudi Arabia.
According to Klein, a new vertical market for tracking LEO’s, smallsats and cubesats is emerging and C-COM has developed advanced tracking algorithms for this market for use with the firm's existing Flyaway antennas. These new satellites operate in LEO and deliver large amounts of data. C-COM has deployed several antenna systems with these new entrants and has demonstrated successful tracking of these fast-moving satellites. The company expects this new market to generate incremental revenue for the company in 2020 and beyond.
He also noted that the Company is also involved in extensive R&D of next generation antenna technologies in conjunction with the University of Waterloo (Canada). Several patents from this research project have already been filed and C-COM expects to file others before the research is completed. This effort is expected to provide C-COM with a revolutionary, patentable Ka-band antenna technology to be used with the growing number of High Throughput Satellites (HTS) being launched in the next several years. This intelligent scalable and conformal antenna technology is designed to be mass producible at a reasonable price and be compatible with 5G and other developing millimeter wave technologies.
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 retirement of Jim Fowles as CFO. Mr. Fowles has been with C-COM for 15 years and will be retiring with effect after the filing of the year end financial statements. Mr. Fowles will be replaced by Art Slaughter, CPA, CFA. Mr. Slaughter brings to C-COM more than 10 years of CFO experience and expertise in corporate development and finance across a number of industries and banking.
“On behalf of the board of directors and everyone at C-COM, I express our thanks to Jim Fowles for all of his service to the Company over the past 15 years. Jim will be missed,” said Leslie Klein. “At the same time, we are excited to have Art Slaughter join us as CFO and look forward to working with him going forward”.
All officer appointments are subject to TSX Venture Exchange approval.