Thursday, August 16, 2012

Norsat: A good, good, second quarter


Norsat International reported positive financial results for the second quarter. According to the CEO of the Canadian satellite communications company, its second quarter revenue, gross profit dollars, EBITDA and net earnings all experienced positive results thanks to the excellent performance of its three business units: Sinclair Technologies, Satellite Solutions, and Microwave Products.

“Our financial results continued to strengthen in the second quarter of 2012," said Dr. Amiee Chan, Norsat’s President and CEO. According to her, the revenue growth in Sinclair Technologies and  Microwave Products drove the company's improved performance. “This represents our 23nd straight quarter of positive EBITDA," Dr. Chan said.

Dr. Chan went on to report that Norsat's Sinclair division continued to perform above historical norms. Continuous demand from the public safety and transportation markets constantly drove sales across Sinclair's diverse product lines, especially for satellite antenna and RF conditioning products.

Norsat's Microwave Products segment also made significant gains during the second quarter. According to Dr. Chan, there is an increasing demand for products such as Norsat's customized Ka-band receivers. In particular, a customer requested products that can be used for airborne applications. And Dr. Chan was pleased to say Norsat was able to tap a new market by fulfilling that request.

In addition, Norsat's custom-designed dual Ku-band and X-band portable satellite communications terminals received Final Acceptance from NATO Communications and Information Agency. “A highlight of the quarter was successfully meeting NATO’s stringent in-field testing criteria for our custom-designed dual Ku and X-band portable satellite terminals," Dr. Chan announced. "Having gained Final Acceptance from our customer, we were able to recognize revenues on our contract during the period.”

Other achievements of note were the release of a Satellite Locator application for iPhone and Norsat’s cutting-edge video streaming technologies. The latter was used in tandem with Ku-band portable satellite terminals to broadcast live footage of U.S. President Obama’s surprise visit and address to U.S. service members in Bagram, Afghanistan on May 1, 2012.

Dr. Chan said that Norsat will further diversify its customer base by providing new products and services to the military, commercial, resource, transportation, and public safety markets. The Norsat Power Solutions business unit is a move in that direction, while the existing Satellite Solutions segment is already considering numerous proposals to better whet the appetite of a growing number of customers who require unique satellite communications needs.



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