COM DEV to downsize, blames space agency funding

“The funding situation on the CSA’s Radarsat Constellation Mission is still uncertain and, if not resolved in the near future, will result in further job losses once development funding runs out later this year.” said ComDev CEO Michael Pley today. Com Dev International Ltd. (TSX:CDV) reported the layoff of 31 employees as part of its down-sizing and restructuring plan of its space division, citing a lack of new program opportunities in the foreseeable future.

The company, which is headquartered in Ottawa with plants in Cambridge, Ontario, said about 10 more employees will be transferred to open positions in other divisions.

Com Dev makes space-based wireless communications products and electronic and optical instruments for Earth observation and space exploration programs.

Its products are sold to satellite contractors and government space agencies for use in military and defence, space satellites and commercial communications.

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Com Dev, which expects to see restructuring costs of about $2 million, saw its stock drop 0.96 per cent to $3.10 each on the Toronto Stock Exchange.

“The lack of new program opportunities from the Canadian Space Agency in the foreseeable future has forced us to take action,” chief executive Michael Pley said in a statement.

“The funding situation on the CSA’s Radarsat Constellation Mission is still uncertain and, if not resolved in the near future, will result in further job losses once development funding runs out later this year.”

Com Dev, which was contracted to provide central electronics and AIS payloads for Radarsat, employs more than 1,250 people at its five plants in North America and the U.K.

The Radarsat mission aims to put three new earth observation satellites into space to collect data covering Canada’s land mass and waters.

Brad Lemaire
Proactive Investors
Source Article

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