[Satellite TODAY Insider 10-22-12] Foreign currency fluctuations negatively affected Canadian antenna manufacturer C-Com Satellite Systems’ profitability in its third fiscal quarter of 2012 as the Canadian dollar strengthened in relation to the U.S. dollar. According to C-Com’s latest financial results issued Oct. 22, the company’s third quarter revenues declined 45.8 percent to $2.46 million compared to $4.54 million during the same period last year.
C-Com’s net profits also fell from $812,561 – or 2.4 cents per share – last year to $65,625 in the 2012 third quarter. The company’s operating profit decreased from $1.11 million in the 2011 third quarter to $285,033 in its most recent quarter.
C-Com President and CEO Leslie Klein noted that the company’s working capital, however, increased 17.8 percent to $13.5 million at the end of August 2012, compared to just $11.52 million at the end of August 2011.
“Our year-to-date revenues declined due to a one time order that shipped to India and Japan in the third quarter of 2011,” Klein said in a statement. “The profitability was also negatively affected by foreign currency effects as the Canadian dollar strengthened in relation to the United States dollar. In addition, a number of large orders that were expected in the third quarter arrived late and were booked into the fourth quarter for delivery before the end of the fiscal year.”
C-Com’s working capital in the previous quarter was $14.2 million — a 37.3 percent increase from the same period last year. During that quarter, the company’s net profits slipped from $1.27 million in the second quarter of 2011 to $542,25, with revenues decreasing 47.5 percent and operating profits falling year-over-year from $1.749 million to $603,814.
C-Com also announced an eligible dividend in the amount of $0.0075 per-common-share that will be payable Nov. 16 to all shareholders of record as of Nov. 2, 2012. Based on C-Com’s closing price of $0.67 per share on Oct. 19, 2012, the dividend would provide a yield of 4.5 percent on an annualized basis.
“We are pleased that we can continue to be able to reward our loyal shareholders with this quarterly dividend,” said Klein.
