Norsat posts financial results

Norsat International Inc. reported financial results for the second quarter ended June 30, 2016.

The highlights for of the financial results were as follows:

For the three months ended June 30, 2016

• $9.0 million in revenue for the quarter, consistent with the amount for the same period last year.

• Gross profit margin of 46% for the quarter, an increase of 7% from 39% for the same period last year.

• Net earnings for the quarter were $0.9 million, or $0.16 per share, basic and diluted, compared to $0.7 million, or $0.12 per share, basic and diluted, for the same period last year.

• Adjusted EBITDA1  of $1.7 million for the quarter, an increase of 50% from $1.2 million for the same period last year.

For the six months ended June 30, 2016

• $18.5 million in revenue for the six months ended June 30, 2016, an increase of 7% compared to $17.4 million for the same period last year.

• Gross profit margin of 45% for the six months ended June 30, 2016, an increase of 6% from 39% for the same period last year.

• Net earnings for the six months ended June 30, 2016 were $2.1 million, or $0.36 per share, basic and diluted, compared to $1.2 million, or $0.21 per share, basic and diluted, for the same period last year.

• Adjusted EBITDA1 of $3.4 million for the six months ended June 30, 2016, an increase of 63% from $2.1 million for the same period last year.

• $9.3 million of cash and cash equivalents at June 30, 2016, an increase of $4.7 million compared to $4.6 million at December 31, 2015.

• $22.6 million of working capital at June 30, 2016, an increase of $3.2 million compared to $19.4 million at December 31, 2015.

“We are very pleased with the first quarter results. Despite continued headwinds in our Sinclair Technologies division, our total revenue has increased by 14% as our Satellite Communications division delivered a significant number of satellite terminals to a major Eurasian defense contractor during the quarter, bringing total shipments to-date of approximately $2.8 million of our $4.2 million contract. The timing of product deliveries on our large order resulted in strong quarterly results,” said Dr. Amiee Chan, President and CEO of Norsat.  “We have also continued to manage our cost structure and were able to deliver another strong quarter of profitability and Adjusted EBITDA.  To capitalize on new market opportunities over the coming years, we have continued with our product development initiatives during the quarter and we were able to introduce new products and solutions, including the introduction of the MEDIAN series of Ku-band Block Up Converters (“BUCs”) and ATOM 250 Watt Ku-band BUCs and solid-state power amplifiers,”  added Chan.