Norsat International Inc.
Norsat Announces 2008 Second Quarter Financial Results
announces financial results for the three- and six-month periods ended June
30, 2008. All financial results are in U.S. dollars unless otherwise
Q2 2008 Summary
* Revenue was $4.0 million, compared to $4.1 million in Q2 2007 * Gross margin was 50%, compared to 59% in Q2 2007 * Net earnings were $0.1 million or $0.00 per share, compared to net earnings of $0.5 million, or $0.01 per share in Q2 2007 * Introduced 12 additional language options for LinkControl, the company's satellite terminal software user interface. LinkControl is now available in 15 different languages * The GlobeTrekker X-Band satellite terminal received certification for use on a certain military satellite * Subsequent to quarter end, launched first product in vehicle mount satellite terminal family and received orders from the U.S. military and an Asian broadcasting network
“Our focus during the quarter was on expanding our product portfolio, as
evidenced by our increased investment in research and development, the
launch of new products and the release of our first vehicle mount terminal
subsequent to the quarter end,” said Dr. Amiee Chan, President and CEO,
Norsat International Inc. “Our Korean office became fully operational and
will release its first product in the fourth quarter of 2008. We also grew
our U.S.-based sales team to extend our reach across the country and
further strengthen our position as a key supplier to the U.S. military.
While we saw a slight decline in our results year-over-year, we generated
an influx of sales near the end of the quarter. We entered the third
quarter with a robust book of orders. Consistent with prior years, we
expect sales to pick up momentum in the second half of the year.”
Revenue was $4.0 million for Q2 2008, compared to $4.1 million in Q2 2007.
Norsat realized a slight year-over-year decline in total revenue, as
revenue from the company’s Microwave Products segment was down $0.2 million
in Q2 2008 compared to the same period last year, and revenue from the
Satellite Systems segment was relatively flat year-over-year. Revenue from
Norsat’s Microwave Products segment was $2.1 million, compared to $2.3
million in Q2 2007. Revenue from the Satellite Systems segment was $1.9
million, up marginally compared to revenue of $1.8 million in Q2 2007.
Norsat’s overall gross margin for Q2 2008 was 50%, compared to 59% in Q2
2007. The year-over-year decline reflects an atypical proportion of
high-margin product and service sales to the high-end commercial and
government markets in Q2 2007. Gross margin for Norsat’s Microwave Products
segment was 39% in Q2 2008, compared to 53% in Q2 2007. Gross margin for
the company’s Satellite Systems segment was 62% in Q2 2008, compared to 67%
in Q2 2007.
Operating expenses for Q2 2008 were $1.8 million, compared to $1.6 million
in Q2 2007. The year-over-year increase was driven primarily by the
company’s planned investment in personnel and corporate development
activities to support growth and accelerate its product development
For Q2 2008, net earnings were $0.1 million, or $0.00 per share, compared
to net earnings of $0.5 million or $0.01 per share in Q2 2007.
Cash used in operating activities was $0.6 million in Q2 2008, compared to
$1.0 million cash generated in Q2 2007. At June 30, 2008, Norsat had cash
of $0.8 million, compared to $1.4 million at March 31, 2008 and $0.7
million as at December 31, 2007. At June 30, 2008, Norsat’s working capital
was $6.7 million compared to $4.9 million at December 31, 2007.
A full set of financial statements and MD&A for Norsat is available at
Notice of Conference Call and Webcast
Norsat will host a conference call on August 6, 2008 at 5:30 p.m. Eastern
Time. To access the conference call by telephone, dial 647-427-3420 or
1-888-300-0053. The conference call reference number is 55280938. Please
connect approximately fifteen minutes prior to the beginning of the call to
ensure participation. A replay of the conference call will be available at
About Norsat International Inc.
Norsat International Inc. designs, engineers and markets intelligent
satellite solutions for high-speed data transmission. Additional
information is available at www.norsat.com. Further information is
available through email at email@example.com or by phone, 1-604-821-2808.
Statements in this news release relating to matters that are not historical
fact are forward-looking statements based on current expectations,
forecasts and assumptions that involve risks and uncertainties that could
cause actual outcomes and results to differ materially. Factors that could
cause or contribute to such differences include, but are not limited to,
general economic conditions, changes in technology, reliance on third party
manufacturing, managing rapid growth, global sales risks, limited
intellectual property protection and other risks and uncertainties
described in Norsat’s public filings with securities regulatory
This information should be read in conjunction with Norsat’s unaudited
consolidated financial statements and related notes included therein for
the quarter ended June 30, 2008, and the Management Discussion and Analysis
for the quarter ended June 30, 2008. All of the company’s financial
statements are prepared in accordance with Canadian generally accepted
accounting principles (Canadian GAAP). Additional information may be found
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