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Com Dev reports Q2 profit up from year ago as margins improve, sales down

CAMBRIDGE, Ont. – Satellite equipment maker Com Dev International Ltd. (TSX:CDV) reported an increase in its latest quarterly profits as the company improved margins, but saw sales dip six per cent from a year ago.

The company said Thursday it earned $5.2 million or seven cents per share for the quarter ended April 30 compared with a profit of $1.3 million or two cents per share a year ago.

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Revenue slipped to $50.1 million, down from $53.1 million.

Com Dev’s order backlog stood at $134 million at April 30, up from $125 million three months earlier and $131 million a year ago.

Last month, the company announced a $15-million contract for components to be used on two commercial satellites providing high-speed broadband service to rural and remote areas of Australia that it described as a record contract amount for its switch business.

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The company said work on the contract would be done at its Ontario plant and was expected to be completed by July 2013.

Com Dev builds subsystems and other technology for major satellite contractors, government agencies and satellite operators.

Shares in the company, which reported its results after the close of markets, were up eight cents at $2.53 on the Toronto Stock Exchange on Thursday.

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