BUSINESS

Com Dev posts Q1 loss of $11.6 million due to currency hedging, other items

03/09/2015 08:06 EDT | Updated 05/09/2015 05:59 EDT
CAMBRIDGE, Ont. - Com Dev International Ltd. (TSX:CDV) says it had an $11.6-million net loss in its fiscal first quarter, including $19.2 million of non-recurring items that dragged the Ontario-based high-tech company into the red.

The biggest item was a $11.6-million item related to its currency hedging program. It also recognized a bigger loss from U.S. operations, about $3 million of restructuring and termination items and $1.6 million of acquisition-related costs.

Excluding the unusual items, Com Dev had $12.1 million of adjusted earnings, up from $11.4 million in the first quarter of fiscal 2014.

The net loss amounted to 15 cents per share.

In the first quarter of fiscal 2014, Com Dev had $2.1 million or three cents per share of net income and $51.8 million of revenue.

Com Dev's revenue was $53.6 million, up 3.5 per cent from a year earlier, largely as a result of currency fluctuations that raised the value of contracts paid in U.S. dollar.

The company, based in Cambridge, Ont., generates most of its revenue from manufacturing and selling hardware such as transponders used in satellites and satellite ground stations. It also has a subsidiary that provides satellite data services.

Com Dev also announced Monday that its exactEarth subsidiary, co-owned with Hisdesat Servicios Estrategicos, has retained Canaccord Genuity to provide advice on funding options and potential merger-acquisition opportunities for pursuing a larger role in its market.

"The strategic options under consideration for exactEarth will be instrumental in helping it reach its full potential, while at the same time unlocking significant value for Com Dev's shareholders," said Michael Pley, Com Dev's chief executive officer.

In the quarter ended Jan. 31, exactEarth generated $5.3 million of revenue, up 60.6 per cent from a year earlier.