Norsat Reports ‘Challenging’ Quarter
[Satellite Today – 5-8-08] Norsat International Inc.’s satellite system segment posted a 35 percent decrease in sales for the first quarter of 2008 and a 31.1 percent decrease in gross profit, the company announced May 7.
The segment posted sales of $955,000, compared to $1.5 million in the first quarter of 2007. Gross profit slipped from $925,000 in 2007 to $637,000 in the first three months of 2007. The decline primarily was a result of lower satellite system sales during the quarter, as Norsat exhausted its U.S. military procurement vehicle, and the military did not issue an expected follow-on contract in the first quarter.
As a whole, Norsat reported revenues of $2.9 million, a 23.7 percent decrease from 2007’s $3.8 million, and $5,000 in net earnings, a decrease of 98 percent from a profit of $462,000 in 2007.
“While [the first quarter] was a challenging quarter from a financial results perspective, we expect sales to regain momentum in the latter half of the year,” Amiee Chan, president and CEO of Norsat, said in a statement. “Demand for our products remains strong. With our solid customer relationships and the technology leadership of our portable satellite terminals, we are well positioned to win additional sizable orders from the U.S. military. Longer term, we will continue working to grow our suite of technology and associated services, extend our global reach and expand into new market verticals.”