Business & Finance
Business and Finance
Business and Finance
Mon, March 16, 2009
Fri, March 13, 2009
Thu, March 12, 2009 Norsat International Inc.: Norsat Announces 2008 Year End Financial Results Record Quarter and Annual Earnings Reported
VANCOUVER, BC--(Marketwire - March 12, 2009) - Norsat International Inc. ("Norsat") (TSX: [ NII ]) (
2008 Summary * Revenue increased to $18.1 million, up 10% from $16.5 million in 2007 * Gross margin was 51%, compared to 52% in 2007 * Operating expenses remained essentially flat at $7.1 million compared to $7.2 million in 2007 * Net earnings were $2.2 million or $0.04 per share, compared to $1.4 million, or $0.03 per share in 2007 * Opened a Research & Development facility in Daejeon, Korea * Opened a sales office in Rome, Italy * Expanded into new market verticals with entry into the Maritime and WiMAX sectors Q4 2008 Financial Summary * Q4 revenue was $6.3 million, compared to $4.8 million in Q4 2007 o Revenue from the Satellite Systems segment was $4.0 million, compared to $2.6 million in Q4 2007 o Revenue from the Microwave Products segment was $2.3 million compared to $2.1 million in Q4 2007 * Gross margin for Q4 was 57%, compared to 47% in Q4 2007 * Operating expenses for Q4 were $2.3 million, up 15% from $2.0 million in Q4 2007 * Q4 net earnings were $1.3 million or $0.02 per share, compared to net earnings of $0.2 million, or $0.00 per share in Q4 2007
"Fiscal 2008 was a banner year for Norsat," said Dr. Amiee Chan, president and CEO, Norsat International Inc. "Building on our success in 2007, we continued to drive organic revenue growth while simultaneously controlling our costs and we earned the highest annual profit since the company's inception. Similarly the fourth quarter operating results are the highest quarterly reported profits in the company's history. With this stronger financial foundation, we look forward to accelerating our growth plans in 2009 by adding to our suite of technology and associated services, extending our geographic reach, and expanding into new market verticals."
Financial Review
Revenue grew by $1.6 million or 10% to $18.1 million in 2008, primarily as a result of the company's increased penetration of the portable satellite systems market. Revenue from the company's Satellite Systems segment grew to $9.4 million, from $7.3 million in 2007, and revenue from the Microwave Products segment decreased to $8.7 million, compared to revenue of $9.1 million in 2007.
Historically, Q4 tends to be Norsat's seasonally strongest quarter. This year was no different as Norsat was awarded a $5.5 million order from the U.S. Department of Defense towards the end of the third quarter. The U.S. military year end is September 30, and this can lead to Norsat receiving orders in the final days of Q3, which are not delivered until subsequent quarters. Consequently, Norsat entered fiscal 2009 with an order backlog of approximately $4.3 million.
Operating expenses for 2008 remained essentially flat at $7.1 million compared to $7.2 million in 2007. The Company is committed to maintaining the positive results of Norsat management's cost restructuring initiatives in the areas of inventory, rent and headcount, which commenced in the fourth quarter of 2006.
For 2008, net earnings were $2.2 million, or $0.04 per share, compared to net earnings of $1.4 million or $0.03 per share in 2007.
Norsat ended the 2008 fiscal year with cash and equivalents of $1.0 million, compared to $0.7 million as at December 31, 2007. The Company ended 2008 without any debt. As at December 31, 2008, Norsat's working capital improved to $8.5 million from $4.9 million as at December 31, 2007.
A full set of financial statements and MD&A for Norsat is available at [ www.norsat.com ] and will be available at [ www.sedar.com ].
Notice of Conference Call and Webcast
Norsat will host a conference call on March 12, 2009 at 9:00 a.m. Pacific Time. To access the conference call by telephone, dial (647)-427-3420 or 1-888-300-0053. The conference call reference number is 88748987. Please connect approximately fifteen minutes prior to the beginning of the call to ensure participation.
About Norsat International Inc.
Norsat International Inc. designs, engineers and markets intelligent satellite solutions for high-speed data transmission. Additional information is available at [ www.norsat.com ]. Further information is available through email at [ investor@norsat.com ] or by phone, 1-604-821-2808.
Forward-Looking Statements
Statements in this news release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in Norsat's public filings with securities regulatory authorities.
This information should be read in conjunction with Norsat's audited consolidated financial statements and related notes included therein for the year ended December 31, 2008, and the Management Discussion and Analysis for the year ended December 31, 2008. All of the company's financial statements are prepared in accordance with Canadian generally accepted accounting principles (Canadian GAAP). Additional information may be found at [ www.norsat.com ].
