C-COM Satellite Systems lands US$3M in new orders as firm seeks rebound from sales funk

C-COM Satellite Systems product
C-COM Satellite Systems has received new orders for its portable iNetVu Manpack antenna technology.

C-COM Satellite Systems says it has secured US$3 million worth of orders for its mobile auto-deploying satellite antenna technology, a major boost for the Ottawa company as it struggles to close deals amid global economic and geopolitical turmoil.

C-COM announced Tuesday it has landed multiple contracts for its portable iNetVu Manpack antenna systems and its recently introduced next-generation iNetVu 1200+ vehicle-mounted systems.

The company said some of the systems have already been delivered to resellers in Asia, the United Arab Emirates and the United States, with the rest scheduled to be delivered in the fourth quarter of fiscal 2023.

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“These orders from our global reseller network are a testimony to the quality and reliability as well as the worldwide acceptance of the iNetVu series of antennas,” C-COM president and CEO Leslie Klein said in a statement. 

“The ability for C-COM to rapidly deliver a large number of antennas, despite worldwide supply chain issues, is validated by large orders like these.”

C-COM said most of the orders are for its Manpack antennas, which it says are light enough to be carried by a single person and can be assembled without tools in less than eight minutes. 

The firm said several of the antennas have been modified for military use and will be deployed by soldiers who need rapid access to satellite communications networks.

“This is an exciting use case for this product, and we will continue to market it to militaries around the world,” the company said in a statement.

Meanwhile, C-COM said the contract for the firm’s latest vehicle-mounted antenna technology marks its first large, multi-unit order for the system, which is designed to be mounted on the roof of vehicles or transportable structures and replaces the company’s older 1200 Vehicle Mount system.

According to C-COM, several thousand of its legacy vehicle-mounted systems are deployed around the world for disaster management, oil and gas exploration, emergency services, cellular backhaul, military, mobile banking and other uses.

The latest orders should provide a welcome shot in the arm to C-COM’s balance sheet as the company looks to rebound from several lacklustre quarters.

The firm recorded revenues of about $3.3 million in the first six months of fiscal 2023, a drop of more than 50 per cent from the same period a year earlier. Its net income was just $166,000, down from $960,000 in the first half of fiscal 2022.

In financial documents filed last month, C-COM said sales have stalled in part due to “sluggish market conditions” amid looming fears of a global recession. 

In addition, the company said the ongoing war in Ukraine has caused supply chain disruptions, shipping delays and inflationary price pressures while cutting off access to its Russian-based resellers.

“Delays in the global supply chain and scarcity of materials may impact the company’s ability to secure the materials and components required to meet customers’ needs and contractual obligations,” it added.

As sales have declined, so has the firm’s market capitalization. 

C-COM’s stock, which was valued at $2 on the TSX Venture Exchange a year ago, was trading at $1.08 late Tuesday morning, up two cents on the day.

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