Satellite Communications Growth Drives EMS First Quarter Gains
[Satellite Today – 4-30-08] EMS Technologies Inc. posted a profit of $4.2 million on revenues of $75.5 million in the 2008 first quarter, the company announced April 30. In the 2007 first quarter, the company recorded a profit of $2.4 million on revenues of $66.6 million.
The satellite communications segment reported revenues of $25.8 million in the most recent quarter, up from $20.3 million in the first three months of 2007. Operating income improved from $2.5 million to $3.1 million over the same period.
The defense and space systems segment recorded revenues of $15.5 million in the 2008 first quarter, up from $13.7 million a year ago. Operating income fell from $1 million in the 2007 first quarter to $500,000 in the 2008 first quarter.
“The company’s first quarter was led by exceptional revenues from satellite communications, where demand for aeronautical products remains strong,” Paul Domorski, the company’s president and CEO, said in a statement. “Revenues through [satellite communications] distribution partners are up, and customers appear eager to upgrade to SwiftBroadband service-enabled products. We believe the market and business trends are favorable with the European Union opening the way for air travelers to use mobile phones on planes throughout Europe’s airspace.
“We expect the defense and space business, with its healthy backlog, strong orders and expansion plans, to be a major contributor to EMS’s performance for the remainder of 2008,” he said.
Separately, EMS announced it received a $13 million subcontract from Northrop Grumman Corp. to continue work on a satellite communications antenna system for the U.S. Air Force’s B-2 bomber.
Under the upgrade program, the Air Force plans to procure about 30 systems, which will allow the B-2 to send and receive information up to 100 times faster than its current ultra-high frequency satellite communications system.