COM DEV Announces Fourth Quarter and Year End Fiscal 2010 Results
Jan. 13, 2010
COM DEV International Ltd. announced fourth quarter and year end financial results for the three- and twelve-month periods ended October 31, 2010. All amounts are stated in Canadian dollars unless otherwise noted.
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% and 100% complete, with the average at 90%. That number continues to be driven towards 100%. Achieving 20% 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."
