Satellite equipment firm C-COM's revenues take 20% dive in Q2

Leslie Klein
Leslie Klein is CEO of Ottawa-based C-COM Satellite Systems. File photo

Ottawa’s C-COM Satellite Systems saw its second-quarter revenues plummet nearly 20 per cent compared with a year earlier, but the company sees brighter days ahead as it continues to refine antenna technology for next-generation satellites that are poised to deliver high-speed internet to the most remote parts of the planet.

C-COM (TSX-V: CMI) reported revenues of just under $837,000 for the three-month period ending May 31, down from nearly $1.1 million in the second quarter of 2020. The company posted a net loss of about $219,000, or one cent per share, an improvement on the $467,000 loss it booked a year earlier.

CEO Leslie Klein pointed to ongoing global economic fallout from the COVID-19 pandemic as a major factor in the Ottawa firm’s failure to make headway in the second quarter.

“With worldwide markets struggling to activate a more normal pace in the face of new waves of COVID variants, we’re still having to weather an environment of weaker sales,” Klein said in a statement. 

“I am, however, cautiously optimistic about future demand given the roll-out of COVID vaccination programs and pent-up demand for our products,” he added, noting the company retains a “healthy balance sheet” and has an “extensive inventory” of products.

C-COM develops, manufactures and deploys commercial satellite antenna technology that enables high-speed internet, VoIP and video services. It’s particularly focused on remote areas, such as the far north in Canada and Russia as well as deserts in Australia and Saudi Arabia.

The firm recently announced it successfully tested a new antenna prototype on an Anik F3 satellite operated by Ottawa-based Telesat. 

C-COM says the new electronically steered technology will be capable of operating on next-generation low-Earth-orbit satellites being developed by Telesat and other manufacturers that are gearing up to deliver broadband wireless service to customers that currently don’t have reliable access to high-speed internet.

The Ottawa firm is banking on the extensive R&D effort to open up new markets for mobile customers in the marine and airline industries, among others.