COM DEV Int’l… Financially Speaking…

[SatNews] COM DEV International Ltd. (TSX:CDV) today announced third quarter financial results for the three month period ended July 31, 2010 — all amounts are stated in Canadian dollars unless otherwise noted.

Third Quarter Highlights…

• Revenue was $52.3 million, compared to $61.5 million in the third quarter of 2009
• Gross margin was 16%, compared to 29% in Q3 2009
• Net loss was $1.7 million, or $(0.02) per share, compared to net income of $5.2 million or $0.07 per share for the third quarter of the prior year
• New orders won in the third quarter totaled $47 million, compared to $45 million a year earlier and $33 million in the second quarter of fiscal 2010
• Backlog at July 31, 2010 was $123 million, compared to $128 million three months earlier

“We believe our core strategy is sound and our long-term opportunities are very promising,” said Michael Pley, Interim CEO of COM DEV. “We are currently feeling the effects of several underperforming programs which will largely be completed within the next few quarters, and reduced funding availability in the near term from the Canadian government for new programs. In order to mitigate their impacts on the financial performance of the Company, we’ve taken actions in Q3 and the early part of Q4, including the decision to exit certain commercial electronics products which have not been consistently profitable, and to take steps to right-size the resources across the Company to align with the near term work load. These steps have resulted in a reduction of 81 employees, or approximately 5% of our global workforce. The resulting one-time severance charge of approximately $3 million will be recorded in Q4, with ongoing savings amounting to over $8 million per year.”