Norsat Blames Weak U.S. Dollar For Fourth Quarter Declines
[Satellite Today – 3-19-08] Norsat International Inc. reported a decrease in revenue and net earnings for the fourth quarter of 2007 but an overall increase for the year, the company announced March 19.
Norsat’s satellite systems segment earned 2.6 million Canadian dollars ($2.6 million) for the quarter ending Dec. 31, a 16 percent decrease from 2006’s 3.1 million Canadian dollars ($3.1 million). For the year, the segment earned 7.8 million Canadian dollars ($7.8 million) in sales to external customers, an increase of nearly 26 percent. Since the majority of Norsat’s revenue is generated in the United States, the company estimates that the fourth quarter decrease in revenue was related to fluctuations in the U.S. dollar relative to the Canadian dollar.
For the year, Norsat increased revenue by 15 percent, to 17.6 million Canadian dollars ($17.7 million) from 15.3 million Canadian dollars ($15.4 million) in 2006. The company posted net earnings of 1.5 million Canadian dollars ($1.5 million), compared to a net loss of 4.4 million Canadian dollars ($4.4 million) in 2006.
“Fiscal 2007 was a turnaround year for Norsat,” Amiee Chan, president and CEO of Norsat, said in a statement. “As a result of our success in driving organic revenue growth while simultaneously reducing our cost base, we reversed what had been a pattern of losses. With a solid operating platform now in place, in 2008 we plan to heighten our focus on driving growth. We plan to continue to add to our suite of technology and associated services, extend our geographic reach and expand into new market verticals. To accelerate growth through these initiatives, we will also explore strategic acquisition opportunities.”