Norsat Announces 2009 Year End Financial Results

11 March 2010

Norsat International Inc. announces financial results for the three and 12-month periods ended December 31, 2009. All results are in United States dollars unless otherwise stated.

“I am pleased to report another year of growth and record earnings for Norsat,” said Dr. Amiee Chan, President and CEO of Norsat International Inc. “These results reveal the underlying strength of our core businesses with the growth in revenues by 17%, especially during a difficult economic climate. While microwave products sales fell 12%, the financial performance in 2009 notably improved due to a 40% increase in sales of our portable satellite systems. Looking forward, we plan on improving the microwave business by introducing more products in 2010 we did in 2009 and we also expect continued growth in the satellite business. As a combined entity, the Company’s capital structure appreciated in 2009 and will enable us to become more aggressive during fiscal 2010 in investing and building our other divisions.”

Dr. Chan added, “We intend on leveraging our recent successes by focusing our efforts on becoming a premier solutions provider of communications infrastructure for remote and austere regions of the world. We believe that the remote and austere places of the world have now reached an inflection point whereby the need for connectivity is a key infrastructure requisite to compete in today’s marketplace. We have begun this process via our financing arm, Norsat Capital, as we invested in Tonse Solutions, our new wireless networking initiative in Malawi, Africa. I am pleased with the current status of this initiative and excited by the additional prospects ahead of us and believe we have taken the necessary steps to maintain foreseeable growth and enhance shareholder value.”

Financial Review

Revenue grew by $3.1 million or 17% to $21.2 million in 2009, primarily as a result of the company’s increased penetration of the portable satellite systems market. Revenue from the company’s Satellite Systems segment grew to $13.1 million, from $9.3 million in 2008, and revenue from the Microwave Products segment decreased to $7.5 million, compared to revenue of $8.7 million in 2008. Revenues from the Maritime segment accounted for $0.4 million in 2009.

Operating expenses for 2009 was up 5.6% at $7.5 million compared to expenses of $7.1 million in 2008. The slight increase is a result of the various initiatives undertaken to diversify and grow the Company’s product offering. It is essential to reemphasize the Company’s commitment to maintenance of a prudent cost structure that leads to a sustainable, profitable business.

For 2009, net operating earnings were $3.0 million, or $0.05 per share, compared to net operating earnings of $2.2 million or $0.04 per share in 2008. Net earnings for 2009 were $4.6 million as a result of a tax recovery of $1.6 million for the year.

Norsat ended the 2009 fiscal year with cash and equivalents of $4.7 million, compared to $1.0 million as at December 31, 2008. As at December 31, 2009, Norsat’s working capital improved to $12.0 million from $8.5 million as at December 31, 2008.

As at December 31, 2009, total shares issued and outstanding were 53,634,305.