- C-COM Satellite Systems (TSXV:CMI), a satellite technology stock, is suspending its quarterly dividend of $0.0125 per share to maximize investments in strategic projects
- The company’s new Electronically Steered Antenna systems will begin to hit the market in late 2025
- C-COM is a leading global designer, developer and manufacturer of transportable and mobile satellite-based antenna systems
- Despite consistently profitable operations, C-COM Satellite Systems stock has given back 15.62 per cent year-over-year and 41.62 per cent since 2020
C-COM Satellite Systems (TSXV:CMI), a satellite technology stock, is suspending its quarterly dividend of $0.0125 per share to maximize investments in strategic projects. These include:
- Ushering its Ka-band Electronically Steered Antenna (ESA) to market, which is designed to provide low-cost, high-throughput mobility applications over satellite for land, airborne and maritime verticals.
- Further developing its Analog Beamforming Integrated Circuit, which is expected to enter the testing phase by mid-2025, with the goal of significantly reducing the cost and improving the performance of the ESA antenna.
Management’s prioritization of long-term growth is backed up by its proven ability to operate in line with shareholder value, steering the company to positive net income in fiscal 2019, 2021, 2022 and 2023. Operations registered a net loss of only C$210,000 when the COVID Pandemic emerged in 2020.
Despite consistently profitable operations, the stock has given back 15.62 per cent year-over-year and 41.62 per cent since 2020, opening the door for a potential value play.
Leadership insights
“As I have reported in earlier releases, C-COM’s R&D team based in Waterloo, Ontario and working with the University of Waterloo’s renowned wireless/satellite research team and support labs, has successfully designed, manufactured and tested a breakthrough multi-orbit ESA Ka-band antenna system offering a range of benefits, including full in motion capability on GEO, MEO and LEO constellations,” Dr. Leslie Klein, president and chief executive officer of C-COM Satellite Systems, said in a statement.
“The antenna’s design is compact, scalable and readily configurable for any number of use-cases, making it ideal for mobile applications such as airborne inflight services, military drone applications, maritime vessels and land vehicles,” Klein added. “Our plan is to bring a compact 1K element ESA system to market in late 2025, followed by the launch of a more robust 4K ESA in early 2026.”
“The primary focus of C-COM over the next couple of years is to bring these leading-edge antenna systems to market and make it possible to also fund a few other significant R&D developments which are in the last stages of completion,” Klein concluded. “We already have considerable cash resources to fund these efforts. Our decision to temporarily suspend the dividend was not made lightly, given our long track record of such payments over the past 50 quarters. While I understand the importance of dividends to our shareholders, I believe this step is necessary to maintain financial flexibility and invest in projects that will deliver significant returns over time. This approach aligns with our mission to build a stronger and more resilient company. I regard prioritizing our working capital to bring this advanced technology ESA to market as a testament of how significant the C-COM team believes the impact our ESA’s will have in the marketplace.”
About C-COM Satellite Systems
C-COM is a leading global designer, developer and manufacturer of transportable and mobile satellite-based antenna systems. The company’s proprietary, auto-acquisition controller technology allows for rapid antenna pointing to a satellite with just the press of a button, enabling broadband Internet via satellite across a wide range of market applications.
To date, C-COM has sold more than 11,000 antenna systems in over 100 countries to customers in oil & gas, military communications, disaster management, satellite news gathering, emergency communications, cellular backhaul, telemedicine, mobile education, government services and mobile banking.
C-COM Satellite Systems stock (TSXV:CMI) is down by 5.26 per cent on the news trading at C$1.08 per share as of 10:59 am ET.
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(Top photo of C-COM iNetVu satellite on a military vehicle in Russia: C-COM Satellite Systems)
