Commenting on the results for Q4, and the year, Mike Pley, COM DEV‘s CEO noted, in particular, the strength of the new order book in Q4, the reduced impact in the quarter from several problematic programs, and the continued reduction in the Company’s operating expenses. “I am pleased to see the realization of $80 million in new orders in the quarter, which is both a solid foundation for us for 2011, and a validation of the continued robustness of the commercial satellite market,” said Mr. Pley. “While timing issues pushed some anticipated revenues into fiscal 2011, in Q4 we demonstrated effective control of operating expenses.
“We continued to focus our efforts, as promised, on completing the five troublesome programs that have plagued the Company for the past year. We did see some cost growth during the quarter on the programs, but at a lower level than previously experienced. At the end of Q4 these programs ranged between 79 percent and 100 percent complete, with the average at 90 percent. That number continues to be driven towards 100 percent. Achieving 20 percent gross margin in the quarter is a reflection of the reduced impact these programs are having on our performance, and is right in line with our previously stated expectations for the quarter.
“Our top priority for 2011 is to increase profitability. We have been conducting a thorough review of all our assets. We have already taken steps to improve the operating models of certain businesses, and we are committed to making any further decisions as necessary to deliver acceptable returns. We currently expect 2011 revenues to be relatively flat compared to 2010, but improved margin and operating expense performance should enable us to show significant bottom line improvement over the year. Our operating expenses continued to trend downward in Q4 as we managed these costs tightly.”
Fiscal Year 2010 Highlights
- Revenue was $220.9 million, an 8% decrease from fiscal 2009 revenue of $240.4 million
- Gross margin was 20%, compared to 27% in 2009
- Net income attributable to shareholders was $2.7 million, or $0.04 per share, compared to a net income of $15.3 million or $0.21 per share the previous year
- New orders totaled $210 million in the fiscal year, compared to $249 million in 2009
- exactEarth Ltd, originally a wholly-owned COM DEV subsidiary, sold a 27% equity interest for $15 million to Madrid-based satellite operator and service provider HISDESAT Servicios Estratégicos S.A.
- Q4 2010 revenue was $51.5 million, compared to $58.3 million recorded a year earlier
- Gross margin was 20%, compared to 25% in the fourth quarter of 2009
- Net loss attributable to shareholders was $1.9 million, or $(0.02) per share, and included approximately $3 million of restructuring costs resulting from a 5% workforce reduction. Net income in Q4 2009 was $0.9 million or $0.01 per share.
- New orders won in the fourth quarter totaled $80 million, compared to $67 million a year earlier and $47 million in Q3 2010
- Backlog at October 31, 2010 was $149 million, compared to $123 million at the end of Q3 2010
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