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COM DEV Announces Third Quarter Fiscal 2010 Results

^{Published on 2010-09-02 13:45:52 - Market Wire}
 

 - Revenue was $52.3 million, compared to $61.5 million in the third quarter of 2009. - Gross margin was 16%, compared to 29% in Q3 2009. - Net loss was $1.7 million, or $(0.02) per share, compared to net income of $5.2 million or $0.07 per share for the third quarter of the prior year. - New orders won in the third quarter totaled $47 million, compared to $45 million a year earlier and $33 million in the second quarter of fiscal 2010. - Backlog at July 31, 2010 was $123 million, compared to $128 million three months earlier. 

 COM DEV International Ltd. Consolidated Statements of Operations (Canadian dollars in thousands, except for per share figures) Unaudited For the three months ended July 31 2010 2009 ------------------------------------------------------------------------- Revenue $ 52,333 $ 61,451 Cost of revenue 43,952 43,440 ----------- ----------- Gross margin 8,381 18,011 ----------- ----------- Research and development costs 2,517 4,531 Research and development recovery 1,507 912 ----------- ----------- Net research and development 1,010 3,619 Selling expenses 3,111 2,423 General expenses 4,873 6,096 ----------- ----------- Operating (loss) income (613) 5,873 Interest expense 128 44 Foreign exchange loss 62 510 Other expense 97 83 ----------- ----------- Net (loss) income before taxes $ (900) $ 5,236 Income taxes 815 - ----------- ----------- Net (loss) income $ (1,715) $ 5,236 ----------- ----------- ----------- ----------- Attributable to: Equity holders of the parent $ (1,715) $ 5,241 Non-controlling interest - (5) ----------- ----------- $ (1,715) $ 5,236 ----------- ----------- ----------- ----------- Earnings per share Basic and diluted earnings per share ($0.02) $0.07 COM DEV International Ltd. Consolidated Statements of Operations (Canadian dollars in thousands, except for per share figures) Unaudited For the nine months ended July 31 2010 2009 ------------------------------------------------------------------------- Revenue $ 169,435 $ 182,066 Cost of revenue 134,578 131,611 ----------- ----------- Gross margin 34,857 50,455 ----------- ----------- Research and development costs 9,224 13,902 Research and development recovery 3,003 2,943 ----------- ----------- Net research and development 6,221 10,959 Selling expenses 8,888 6,823 General expenses 16,043 17,171 ----------- ----------- Operating income 3,705 15,502 Interest expense 416 366 Foreign exchange (gain) loss (2,359) 423 Other expense 219 290 ----------- ----------- Net income $ 5,429 $ 14,423 Income taxes 815 - ----------- ----------- Net income $ 4,614 $ 14,423 ----------- ----------- ----------- ----------- Attributable to: Equity holders of the parent $ 4,635 $ 14,448 Non-controlling interest (21) (25) ----------- ----------- $ 4,614 $ 14,423 ----------- ----------- ----------- ----------- Earnings per share Basic and diluted earnings per share $0.06 $0.20 COM DEV International Ltd. Consolidated Balance Sheets (Canadian dollars in thousands) Unaudited As at As at July 31, October 31, 2010 2009 ------------------------------------------------------------------------- Assets Current Cash and cash equivalents $ 8,899 $ 21,404 Accounts receivable 35,153 53,674 Inventory 59,361 51,114 Prepaids and other 4,594 3,112 Income taxes recoverable 5,327 4,615 Future income tax assets - current 6,192 6,192 ----------- ----------- 119,526 140,111 Property, plant and equipment 73,871 69,537 Intangible assets 25,983 21,459 Goodwill 2,270 2,388 Future income tax assets - long term 1,881 1,723 ----------- ----------- Total assets $ 223,531 $ 235,218 ----------- ----------- ----------- ----------- Liabilities Current Accounts payable and accrued liabilities $ 25,639 $ 32,939 Deferred revenue 19,519 22,510 Current portion of loans payable 6,392 6,587 ----------- ----------- 51,550 62,036 ----------- ----------- Long term Loans payable 8,468 13,401 Employee future benefits 1,889 1,872 ----------- ----------- 10,357 15,273 ----------- ----------- Total liabilities 61,907 77,309 ----------- ----------- Shareholders' equity Share capital 346,068 345,885 Contributed surplus 3,429 2,804 Deficit (184,124) (188,759) Non-controlling interest - 486 Accumulated other comprehensive loss (3,749) (2,507) ----------- ----------- Total shareholders' equity 161,624 157,909 ----------- ----------- Total liabilities and shareholders' equity $ 223,531 $ 235,218 ----------- ----------- ----------- ----------- COM DEV International Ltd. Consolidated Statements of Cash Flows (Canadian dollars in thousands) Unaudited For the three months ended July 31 2010 2009 ------------------------------------------------------------------------- Operating activities Net (loss) income $ (1,715) $ 5,236 Amortization 3,033 2,809 Loss (gain) on disposal of assets 20 (6) Defined benefit plan expenses 361 109 Defined benefit plan contributions (195) (141) Stock compensation expense 315 271 Employee stock ownership plan awards 43 40 Unrealized foreign exchange loss (gain) on derivatives 1,098 (2,847) ----------- ----------- 2,960 5,471 Net change in non-cash working capital items 2,571 (11,657) ----------- ----------- Operating activities 5,531 (6,186) ----------- ----------- Financing activities Shares issued - (60) Advance of long term debt 549 - Repayment of long term debt (1,749) (1,710) ----------- ----------- Financing activities (1,200) (1,770) ----------- ----------- Investing activities Acquisition of property, plant and equipment (3,085) (842) Proceeds on disposal of property, plant, and equipment - 53 Acquisition of intangible assets (2,506) (3,470) ----------- ----------- Investing activities (5,591) (4,259) ----------- ----------- Effect of exchange rate changes on cash (244) 121 ----------- ----------- Net decrease in cash (1,504) (12,094) Cash and cash equivalents, beginning of period 10,403 31,896 ----------- ----------- Cash and cash equivalents, end of period $ 8,899 $ 19,802 ----------- ----------- ----------- ----------- Interest paid $ 134 $ 205 ----------- ----------- ----------- ----------- Taxes paid $ 15 $ - ----------- ----------- ----------- ----------- COM DEV International Ltd. Consolidated Statements of Cash Flows (Canadian dollars in thousands) Unaudited For the nine months ended July 31 2010 2009 ------------------------------------------------------------------------- Operating activities Net income $ 4,614 $ 14,423 Amortization 8,276 8,500 Loss (gain) on disposal of assets 73 (32) Defined benefit plan expenses 696 346 Defined benefit plan contributions (585) (450) Stock compensation expense 837 657 Employee stock ownership plan awards 146 137 Unrealized foreign exchange gain on derivatives (1,703) (5,482) ----------- ----------- 12,354 18,099 Net change in non-cash working capital items (509) (20,938) ----------- ----------- Operating activities 11,845 (2,839) ----------- ----------- Financing activities Shares issued - 21,813 Advance of long term debt 549 - Repayment of long term debt (4,980) (5,325) ----------- ----------- Financing activities (4,431) 16,488 ----------- ----------- Investing activities Acquisition of property, plant and equipment (9,647) (2,723) Proceeds on disposal of property, plant and equipment 1 79 Acquisition of intangible assets (7,787) (6,577) Business acquisitions (2,127) (140) ----------- ----------- Investing activities (19,560) (9,361) ----------- ----------- Effect of exchange rate changes on cash (359) (588) ----------- ----------- Net (decrease) increase in cash (12,505) 3,700 Cash and cash equivalents, beginning of period 21,404 16,102 ----------- ----------- Cash and cash equivalents, end of period $ 8,899 $ 19,802 ----------- ----------- ----------- ----------- Interest paid $ 441 $ 780 Taxes paid $ 173 $ - ----------- ----------- ----------- ----------- COM DEV International Ltd. Consolidated Statements of Changes in Equity (Canadian dollars in thousands) Unaudited Accumu- For the lated nine months Other ended Compre- Non-cont- Contrib- July 31, hensive Share rolling uted 2010 Total Deficit Loss Capital interest Surplus ------------------------------------------------------------------------- Balance, October 31, 2009 $ 157,909 $(188,759) $ (2,507) $ 345,885 $ 486 $ 2,804 Comprehen- sive income Net Income 4,614 4,635 - - (21) - Foreign currency transla- tion adjust- ments (net of taxes of $nil) (1,242) - (1,242) - - - ---------- ---------- ---------- ---------- ---------- ---------- 3,372 4,635 (1,242) - (21) - Common stock issued - - - 183 - (183) Value of ESOP awards 146 - - - - 146 Minority interest purchase adjust- ment (640) - - - (465) (175) Expense recognized for stock- based compen- sation 837 - - - - 837 ---------- ---------- ---------- ---------- ---------- ---------- Balance, July 31, 2010 $ 161,624 $(184,124) $ (3,749) $ 346,068 $ - $ 3,429 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------------------------------------------------------------------------- For the nine months ended July 31, 2009 Balance, October 31, 2008 $ 121,584 $(204,065) $ (729) $ 323,975 $ 524 $ 1,879 Compre- hensive income Net Income 9,182 9,207 - - (25) - Foreign currency transla- tion adjust- ments (net of taxes of $nil) (833) - (833) - - - ---------- ---------- ---------- ---------- ---------- ---------- 8,349 9,207 (833) - (25) - Common stock issued 21,873 - - 22,032 - (159) Value of ESOP awards 97 - - - - 97 Expense recognized for stock- based compen- sation 386 - - - - 386 ---------- ---------- ---------- ---------- ---------- ---------- Balance, July 31, 2009 $ 152,288 $(194,858) $ (1,562) $ 346,007 $ 499 $ 2,203 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------