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COM DEV Announces Second Quarter Fiscal 2010 Results

^{Published on 2010-06-10 13:15:11 - Market Wire}
 

 - Revenue was $60.4 million, compared to $64.1 million in the second quarter of 2009. - Gross margin was 22%, compared to 28% in Q2 2009. - Net income was $4.1 million, or $0.05 per share, compared to $4.9 million or $0.07 per share for the second quarter of the prior year. - Sequentially, revenue was up by 7%, and earnings improved by $0.03 per share. - New orders won in the second quarter totaled $33 million, compared to $50 million a year earlier and $51 million in the first quarter of fiscal 2010. An additional $45 million of follow-on orders are expected to result from Authorities to Proceed (ATPs) received in Q2 2010. - Backlog at April 30, 2010 was $128 million, compared to $157 million three months earlier. 

 COM DEV International Ltd. Consolidated Statements of Changes in Equity (Canadian dollars in thousands) Unaudited Accumu- For the lated six months Other ended Compre- Non-cont- Contrib- April 30, hensive Share rolling uted 2010 Total Deficit Income Capital interest Surplus ------------------------------------------------------------------------- Balance, October 31, 2009 $ 157,909 $(188,759) $ (2,507) $ 345,885 $ 486 $ 2,804 Comprehen- sive income Net Income 6,329 6,350 - - (21) - Foreign currency transla- tion adjustm- ents (net of taxes of $nil) (1,416) - (1,416) - - - ---------- ---------- ---------- ---------- ---------- ---------- 4,913 6,350 (1,416) - (21) - Common stock issued - - - 183 - (183) Value of ESOP awards 103 - - - - 103 Minority interest purchase adjust- ment (640) - - - (465) (175) Expense recogn- ized for stock-based compens- ation 522 - - - - 522 ---------- ---------- ---------- ---------- ---------- ---------- Balance, April 30, 2010 $ 162,807 $(182,409) $ (3,923) $ 346,068 $ - $ 3,071 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Accumu- For the lated six months Other ended Compre- Non-cont- Contrib- April 30, hensive Share rolling uted 2009 Total Deficit Income Capital interest Surplus ------------------------------------------------------------------------- Balance, October 31, 2008 $ 121,584 $(204,065) $ (729) $ 323,975 $ 524 $ 1,879 Comprehensive income Net Income 9,187 9,207 - - (20) - Foreign currency transla- tion adjustm- ents (net of taxes of $nil) (833) - (833) - - - ---------- ---------- ---------- ---------- ---------- ---------- 8,354 9,207 (833) - (20) - Common stock issued 21,873 - - 22,032 - (159) Value of ESOP awards 97 - - - - 97 Expense recogn- ized for stock-based compens- ation 386 - - - - 386 ---------- ---------- ---------- ---------- ---------- ---------- Balance, April 30, 2009 $ 152,294 $(194,858) $ (1,562) $ 346,007 $ 504 $ 2,203 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- COM DEV International Ltd. Consolidated Statements of Operations (Canadian dollars in thousands, except for per share figures) Unaudited For the three months ended April 30 2010 2009 ------------------------------------------------------------------------- Revenue $ 60,415 $ 64,104 Cost of revenue 47,364 46,338 ----------- ----------- Gross margin 13,051 17,766 ----------- ----------- Research and development costs 3,022 5,525 Research and development recovery 728 987 ----------- ----------- Net research and development 2,294 4,538 Selling expenses 3,124 2,364 General expenses 4,871 5,718 ----------- ----------- Operating income 2,762 5,146 Interest expense (income) 141 (101) Foreign exchange (gain) loss (1,457) 315 Other (income) expense (24) 99 ----------- ----------- Net income $ 4,102 $ 4,833 ----------- ----------- ----------- ----------- Attributable to: Equity holders of the parent $ 4,105 $ 4,853 Non-controlling interest (3) (20) ----------- ----------- $ 4,102 $ 4,833 ----------- ----------- ----------- ----------- Earnings per share Basic and diluted earnings per share $ 0.05 $ 0.07 COM DEV International Ltd. Consolidated Statements of Operations (Canadian dollars in thousands, except for per share figures) Unaudited For the six months ended April 30 2010 2009 ------------------------------------------------------------------------- Revenue $ 117,102 $ 120,615 Cost of revenue 90,626 88,171 ----------- ----------- Gross margin 26,476 32,444 ----------- ----------- Research and development costs 6,707 9,371 Research and development recovery 1,496 2,031 ----------- ----------- Net research and development 5,211 7,340 Selling expenses 5,777 4,400 General expenses 11,170 11,075 ----------- ----------- Operating income 4,318 9,629 Interest expense 288 322 Foreign exchange gain (2,421) (87) Other expense 122 207 ----------- ----------- Net income $ 6,329 $ 9,187 ----------- ----------- ----------- ----------- Attributable to: Equity holders of the parent $ 6,350 $ 9,207 Non-controlling interest (21) (20) ----------- ----------- $ 6,329 $ 9,187 ----------- ----------- ----------- ----------- Earnings per share Basic and diluted earnings per share $ 0.08 $ 0.13 COM DEV International Ltd. Consolidated Balance Sheets (Canadian dollars in thousands) Unaudited As at As at April 30, October 31, 2010 2009 ------------------------------------------------------------------------- Assets Current Cash and cash equivalents $ 10,403 $ 21,404 Accounts receivable 38,835 53,674 Inventory 62,698 51,114 Prepaids and other 5,680 3,112 Income taxes recoverable 5,389 4,615 Future income tax assets - current 6,192 6,192 ----------- ----------- 129,196 140,111 Property, plant and equipment 72,042 69,537 Intangible assets 24,598 21,459 Goodwill 2,242 2,388 Future income tax assets - long term 1,881 1,723 ----------- ----------- Total assets $ 229,960 $ 235,218 ----------- ----------- Liabilities Current Accounts payable and accrued liabilities $ 27,048 $ 32,939 Deferred revenue 22,608 22,510 Current portion of loans payable 6,279 6,587 ----------- ----------- 55,935 62,036 ----------- ----------- Long term Loans payable 9,388 13,401 Employee future benefits 1,830 1,872 ----------- ----------- 11,218 15,273 ----------- ----------- Total liabilities 67,153 77,309 ----------- ----------- Shareholders' equity Share capital 346,068 345,885 Contributed surplus 3,071 2,804 Deficit (182,409) (188,759) Non-controlling interest - 486 Accumulated other comprehensive income (3,923) (2,507) ----------- ----------- Total shareholders' equity 162,807 157,909 ----------- ----------- Total liabilities and shareholders' equity $ 229,960 $ 235,218 ----------- ----------- ----------- ----------- COM DEV International Ltd. Consolidated Statements of Cash Flows (Canadian dollars in thousands) Unaudited For the three months ended April 30 2010 2009 ------------------------------------------------------------------------- Operating activities Net income $ 4,102 $ 4,833 Amortization 2,626 2,842 Gain on disposal of assets - (26) Defined benefit plan expenses 165 119 Defined benefit plan contibutions (193) (156) Stock compensation expense 245 210 Employee stock ownership plan awards 46 43 Unrealized foreign exchange gain on derivatives (1,854) (2,426) ----------- ----------- 5,137 5,439 Net change in non-cash working capital items (3,010) 1,704 ----------- ----------- Operating activities 2,127 7,143 ----------- ----------- Financing activities Shares issued - 21,615 Repayment of long term debt (1,647) (2,045) ----------- ----------- Financing activities (1,647) 19,570 ----------- ----------- Investing activities Acquisition of property, plant and equipment (3,862) (1,432) Proceeds on disposal of property, plant, and equipment - 26 Acquisition of intangible assets (2,311) (2,164) Business acquisitions (2,127) (140) ----------- ----------- Investing activities (8,300) (3,710) ----------- ----------- Effect of exchange rate changes on cash (5) (350) ----------- ----------- Net (decrease) increase in cash (7,825) 22,653 Cash and cash equivalents, beginning of period 18,228 9,243 ----------- ----------- Cash and cash equivalents, end of period $ 10,403 $ 31,896 ----------- ----------- ----------- ----------- Interest paid $ 146 $ 252 ----------- ----------- ----------- ----------- Taxes paid $ - $ - ----------- ----------- ----------- ----------- COM DEV International Ltd. Consolidated Statements of Cash Flows (Canadian dollars in thousands) Unaudited For the six months ended April 30 2010 2009 ------------------------------------------------------------------------- Operating activities Net income $ 6,329 $ 9,187 Amortization 5,243 5,691 Loss (gain) on disposal of assets 53 (26) Defined benefit plan expenses 335 237 Defined benefit plan contibutions (390) (309) Stock compensation expense 522 386 Employee stock ownership plan awards 103 97 Unrealized foreign exchange gain on derivatives (2,801) (2,635) ----------- ----------- 9,394 12,628 Net change in non-cash working capital items (3,080) (9,281) ----------- ----------- Operating activities 6,314 3,347 ----------- ----------- Financing activities Shares issued - 21,873 Repayment of long term debt (3,231) (3,615) ----------- ----------- Financing activities (3,231) 18,258 ----------- ----------- Investing activities Acquisition of property, plant and equipment (6,562) (1,881) Proceeds on disposal of property, plant and equipment 1 26 Acquisition of intangible assets (5,281) (3,107) Business acquisitions (2,127) (140) ----------- ----------- Investing activities (13,969) (5,102) ----------- ----------- Effect of exchange rate changes on cash (115) (709) ----------- ----------- Net increase (decrease) in cash (11,001) 15,794 Cash and cash equivalents, beginning of period 21,404 16,102 ----------- ----------- Cash and cash equivalents, end of period $ 10,403 $ 31,896 ----------- ----------- ----------- ----------- Interest paid $ 308 $ 575 ----------- ----------- ----------- ----------- Taxes paid $ 158 $ - ----------- ----------- ----------- -----------