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COM DEV rises on first quarter numbers

Today's announcement is good news for COM DEV, which as recently as October announced the layoff of 31 employees and the transfer of 10 others as a response to a lack of future contracts.

com dev headquarters cambridgeShares of COM DEV (TSX:CDV) are up day after the company released its Q1, 2015 financials.

In the first quarter, the Cambridge, Ontario-based company lost $11.6-million on revenue of $53.6-million, up 3.5% from the $51.8-million topline the company posted in the first quarter of 2014.

“The strong performance of our core business in the first quarter of fiscal 2015 reflects the continuing growth in demand for commercial satellite components and our market leadership,” said CEO Michael Pley. “While these results were affected by one-time, non-cash foreign currency charges, the restructuring and wind-down of our U.S. facilities, and acquisition-related costs, we are confident that industry growth trends combined with the decisions made this quarter to stabilize the business position us well for a successful 2015.

COM DEV said revenue in the quarter was $4.0-million higher than expected because of the weak loonie.

In late February, Paradigm Capital analyst Daniel Kim said he thinks COM DEV is returning to its former glory. The analyst posited that a spike in the global satellite business would greatly benefit the company, which is a leading supplier of satellite communications equipment.

At press time, shares of COM DEV were up 8.1% to $4.40.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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