The disaster in Japan has the country on its heels with the ongoing threat of a nuclear meltdown and physical damage that cannot even be accurately assessed. Obviously, control of the radiation is of primary focus due to the number of potential fatalities if not controlled properly.
There are countless other problems that fall in line after that regarding fresh drinking water, electricity, food, etc., not to mention the billions of dollars in rebuilding. Communications are also a large concern as those services have also handcuffed the people of Japan as a result of the earthquakes and tsunami.
While the way that some small companies are shamelessly trying to hop on the bandwagon to increase share value based on services that could generate revenue from the Japanese catastrophe, there are some companies that have genuinely provided goods and services that are not only proving valuable today, but also will serve future purposes during the days when the 2011 earthquake will be behind the country.
Ottawa-based C-COM Satellite Systems, Inc. (TSX-Venture:CMI), a leading global provider of mobile auto-deploying satellite antenna systems, is one of these valuable companies. Last week, the Company announced that it had received $600,000 worth of orders for its iNetVu® mobile antenna products from a number of Asian customers throughout Japan, China and Malaysia.
The units for Japan have already been deployed in the tsunami affected regions of Japan, where they are providing emergency cellular back-up communications. China has stepped up preparation for any critical conditions and will be using the iNetVu systems for their national disaster management plan, while Malaysia Telecom will be deploying them as mobile offices across Malaysia.
While those revenue will be not be realized until later quarterly reports, C-COM released financial results for the fiscal year ended November 30, 2010 today which showed strong growth for the year 2010. C-COM, which posted solid numbers in 2009, expanded upon them across the board in 2010 with higher revenues while at the same time reducing its cost of goods sold by 2.7% when compared to the year prior. Highlights from the report included revenues increasing by 14.4% to $10,475,614 from $9,157,789 while operating profits increased 57.6% to $2,777,015.
Net Profit increased 40.4% to $1,846,037 or five cents per share as compared to $1,315,068 or four cents per share and working capital increased by 25.8% to $8,885,696 as compared to $7,062,159.
The final numbers would have actually been larger except for the fact that the equipment that was part of a $2.3-million order announced last July was not shipped by the end of the fiscal year, despite the Company having it ready for delivery. Approximately $861,000 worth of funds due for the order has been received and a portion has been shipped, while the Company is in talks to schedule the remaining payment and delivery.
Shareholders are responding to the news of good financials as shares of V.CMI are trading at $0.395, up approximately 10%, on above average volume so far today.
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