VANCOUVER - Satellite technology company MacDonald, Dettwiler and Associates Ltd. (TSX:MDA) is reporting a second-quarter net loss of $1 million — the result of a share-based compensation expense after shares soared on an acquisition near the end of the quarter.
The three cent per share loss compares to net earnings of $29.6 million or 72 cents per share in the same period last year. Revenue came in at $164 million compared to $195 million year over year.
The Vancouver-based company said Thursday after markets closed that net earnings were hit by a share-based compensation expense of $32 million that had no bearing on operations or cash flow for the quarter.
The expense was triggered by the sharp rise in the company's shares after it announced it will pay US$875 million for California-based company Space Systems/Loral Inc. MDA shares soared 25 per cent on the day the deal was announced.
The deal, which the company called "a game changer" will boost the Canadian space hardware maker's role as a supplier of commercial communications satellites.
MDA says operating earnings, or net earnings adjusted for specific items, were $29 million, or 91 cents per share — beating analyst estimates by two cents.
Analysts expected MDA to report earnings per share of 89 cents. Revenue was targeted at $179 million, according to a poll by Thomson Reuters.
MDA is best-known as the maker of the robotic arms used on the International Space Station and the now-retired U.S. space shuttles.
The Vancouver-based company had attempted to sell its satellite division several years ago to U.S. defence contractor Alliant Techsystems of Edina, Minn., but was blocked from doing so by the Harper government, which cited national security reasons.
It has also been involved in a variety of businesses that use satellites to collect information from space.
MDA shares closed up 13 cents to 54.80 on the Toronto Stock Exchange.