An Ottawa company that develops mobile communications satellite systems has inked a five-year contract with one of its reselling partners that could be worth up to US$2 million.
C-COM Satellite Systems (TSXV: CMI) announced the deal with Russian satellite communication operator AltegroSky on Wednesday morning. According to a media release, the company has been reselling C-COM’s mobile antennas to customers in Russia’s emergency services, oil and gas exploration, broadcasting and mobile banking sectors for more than a decade.
“This agreement shows long-term interest from one of our most active integration partners in the region operating in demanding environments to deliver the highest-quality product to their customers,” Drew Klein, director of international business development for C-COM, said in the release.
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The contract win is good news for the Ottawa-based company, which reported a 10 per cent drop in year-over-year revenues in the second quarter of 2018. C-COM posted revenues of $2.7 million for the three-month period ending May 31, down from just over $3 million a year earlier. The firm also recorded a net after-tax profit of $145,909, marking the 29th consecutive quarter it finished in the black.
Earlier this year, CEO Leslie Klein sounded an upbeat tone about the firm’s prospects, predicting a rejuvenated oil and gas sector would fuel a surge in new sales.
“We are starting to see an economic turnaround, especially in the oil and gas sector, which has been a significant user of our antenna systems,” CEO Leslie Klein said in July. “With oil prices on the rise, we expect to see a continual increase of orders from this important market segment.”
C-COM shares were unchanged at $1.03 in late afternoon trading on the TSX Venture Exchange.
