Com Dev says stronger US dollar helped revenue
New satellite orders during Q1 totalled $36.6 million.
CAMBRIDGE, Ont. — Com Dev International Ltd. says the stronger US dollar had a negative effect on its first-quarter profit but helped its revenue.
The Cambridge, Ont.-based satellite hardware developer’s net income dropped to $1.8 million in the three months ended Jan. 31 – down nearly 55% from $4.1 million in the first quarter of fiscal 2013.
Com Dev says the stronger US dollar resulted in a $1.5-million foreign exchange loss during the quarter – mainly due to the reduced market value of its currency hedges.
Com Dev’s first-quarter revenue was down 1% or $500,000 from a year ago at $51.8 million, but the company says the currency fluctuation provided a positive impact on revenue and margins.
The company reports new orders during the quarter totalled $36.6 million, following a near record level of orders received in the prior quarter.
The order backlog was $149.3 million, in line with $148 million in the first quarter of last year.
ComDev’s exactEarth subsidiary had revenue of $3.5 million, up 40% from $2.5 million a year ago.
“Both our equipment and data service businesses performed well in the first quarter, but as expected, our US operations were negatively impacted as we adjusted our capacity in line with reduced US government demand”, said CEO Michael Pley. “Our new commercial business pipeline remains strong and this is bolstered by the continued strong growth of exactEarth.”
exactEarth Ltd., jointly owned by Com Dev and HISDESAT Servicios Estratégicos SA, a Spanish company, offers a global vessel tracking and maritime domain monitoring system based on space-based automatic identification system (AIS) detection technology.
© 2014 The Canadian Press