NORSAT ANNOUNCES FIRST QUARTER FISCAL YEAR 2016 FINANCIAL RESULTS
– Management to Host Conference Call at 8:30 am Pacific Time (11:30 am Eastern Time) –
Vancouver, British Columbia – May 4, 2016 – Norsat International Inc. (“Norsat” or the “Company”) (TSX: NII and NYSE MKT: NSAT), a provider of unique and customized communication solutions for remote and challenging applications, today reported financial results for the first quarter ended March 31, 2016.
- $9.6 million in revenue for the quarter, an increase of 14% compared to $8.4 million for the same period last year.
- Gross profit margin of 44% for the quarter, an increase of 4% from 40% for the same period last year.
- Net earnings for the quarter were $1.2 million, or $0.20 per share, basic and diluted, compared to $0.6 million, or $0.10 per share, basic and diluted, for the same period last year.
- $7.2 million of cash and cash equivalents at March 31, 2016, an increase of $2.6 million compared to $4.6 million at December 31, 2015.
- $21.2 million of working capital at March 31, 2016, an increase of $1.8 million compared to $19.4 million at December 31, 2015.
- Adjusted EBITDA of $1.7 million for the quarter, an increase of 78% from $0.9 million for the same period last year.
Adjusted EBITDA is a measure that the Company uses to reflect the results of its core earnings. Adjusted EBITDA is defined as earnings before income tax expense, financing costs, depreciation and amortization, foreign exchange gain or loss, corporate development costs, write-down of inventory, impairment charges or recoveries, discontinued operations and other non-cash charges.
“We are very pleased with the first quarter results. Despite continued headwinds in our Sinclair Technologies division, our total revenue has increased by 14% as our Satellite Communications division delivered a significant number of satellite terminals to a major Eurasian defense contractor during the quarter, bringing total shipments to-date of approximately $2.8 million of our $4.2 million contract. The timing of product deliveries on our large order resulted in strong quarterly results.” said Dr. Amiee Chan, President and CEO of Norsat. “We have also continued to manage our cost structure and were able to deliver another strong quarter of profitability and Adjusted EBITDA. To capitalize on new market opportunities over the coming years, we have continued with our product development initiatives during the quarter and we were able to introduce new products and solutions, including the introduction of the MEDIAN series of Ku-band Block Up Converters (“BUCs”) and ATOM 250 Watt Ku-band BUCs and solid-state power amplifiers,” added Dr. Chan.
Conference Call Details
Norsat will host a conference call today, May 4, 2016 at 8:30 am Pacific Time (11:30 am Eastern Time) to discuss its fiscal year 2016 first quarter results. To access the conference call, please dial toll-free 1-888-886-7786 or 416-764-8658. The conference call title is: ‘Norsat Investor Call’. Please connect approximately 10 – 15 minutes prior to the beginning of the call to ensure participation. A digital recording and transcript of the call will be available after the live call at: http://www.norsat.com/investors/financial-information/conference-call-recordings/
About Norsat International Inc.
Founded in 1977, Norsat International Inc. is a provider of unique and customized communication solutions for remote and challenging applications. Norsat’s products and services include leading-edge product design and development, production, distribution and infield support and service of fly-away satellite terminals, microwave components, Radio Frequency (RF) conditioning products, maritime based satellite terminals and remote network connectivity solutions. More information is available at www.norsat.com, via email at firstname.lastname@example.org or by phone at 1-604-821-2800.
Forward Looking Statements
The discussion and analysis of this news release contains forward-looking statements concerning anticipated developments in Norsat’s operations in future periods, the adequacy of its financial resources and other events or conditions that may occur in the future. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,”, “predicts,” “potential,” “targeted,” “plans,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved. These forward-looking statements include, without limitation, statements about Norsat’s market opportunities, strategies, competition, expected activities and expenditures as it pursues its business plan, the adequacy of available cash resources and other statements about future events or results. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, such as business and economic risks and uncertainties. The forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or anticipated developments will be realized. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this news release and Norsat assumes no obligation to update or revise them to reflect new events or circumstances, other than as required by law.
For further information, contact:
|Dr. Amiee Chan||Arthur Chin|
|President & CEO||Chief Financial Officer|
|Tel: 604 821-2800||Tel: 604 821-2800|
|Email: email@example.com||Email: firstname.lastname@example.org|