CAMBRIDGE, ON, Aug. 26 /CNW/ - COM DEV International Ltd. (TSX:CDV) today announced preliminary financial results for the three-month period ended July 31, 2010. All figures cited in this news release are based on preliminary financial data and are subject to change (as a result of the quarterly financial review process). All amounts are stated in Canadian dollars.
Management currently expects third quarter results to be as follows:
- Revenue of approximately $52 million
- Gross margin of 16%
- Net loss of approximately $1.7 million
- New orders of approximately $47 million
- Backlog of approximately $123 million at July 31, 2010, plus an
additional $21 million in follow-on orders expected from Authorities
to Proceed (ATPs) already awarded
- Cash balance of $9 million at July 31, 2010
Management now expects annual revenues for fiscal 2010 to be approximately 5% lower than fiscal 2009 revenues. This compares to previous guidance of minimal revenue growth.
"Our results in the third quarter were affected by continuing cost growth on the five programs that have recently proved troublesome for us," said John Keating, CEO of COM DEV International. "These programs caused a combined negative gross margin impact of $6.7 million in the quarter. Collectively, those programs are 86% complete and are expected to represent a steadily decreasing proportion of our revenues, falling from 5% of Q3 2010 revenues to less than 2% of revenues by the second half of next year. We believe we have taken the appropriate steps to fully address the expected costs on these five programs, so they won't continue to generate negative gross margins.
"The balance of our business remains on track and performing in line with our expectations, and our management team is committed to doing what is necessary to improve profitability. We are focusing on the pursuit of those opportunities that are best aligned with our core strengths, and we are working to ensure that our resources match current revenue opportunities," Mr. Keating added.
Complete results and conference call
Complete third quarter financial results will be released on Thursday, September 2, 2010 after the close of trading hours. A conference call will be held that day at 5:00 pm EDT to discuss the results in detail. To access the live webcast, please visit the Company's website at www.comdevintl.com or www.newswire.ca for directions.
About COM DEV
COM DEV International Ltd. (www.comdevintl.com) is a leading global designer and manufacturer of space hardware subsystems. With facilities in Canada, the United Kingdom and the United States, COM DEV manufactures advanced products and subsystems that are sold to major satellite prime contractors for use in communications, space science, remote sensing and military satellites.
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements may include financial and other projections, as well as statements regarding COM DEV's future plans, objectives or economic performance, or the assumptions underlying any of the foregoing. COM DEV uses words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by COM DEV in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors COM DEV believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to COM DEV's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause COM DEV's actual results, historical financial statements, or future events to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: uncertainty in the global economic environment; fluctuations in currency exchange rates; delays in the purchasing decisions of COM DEV's customers; the competition COM DEV faces in its industry and/or marketplace; and the possibility of technical, logistical or planning issues in connection with the deployment of COM DEV's products or services.
The triangular logo and the word COM DEV are each registered trademarks and the property of COM DEV Ltd. All rights reserved.
SOURCE COM DEV International Ltd.
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