In the first quarter of 2008, Comrod Communication Group strengthened its position as a leading player in global markets for advanced tactical antennas, masts and power supply. Operational performance, financial results and positive US market feedback all contributed here.
Highlights:
- Best first quarter ever with revenues of NOK 100.3 million and operating profit of NOK 11.1 million.
- Breakthrough contract to Power Supply from Harris Corp. in USA, leveraging on Comrod’s existing extensive customer base.
- Important new Lerc contract on tactical masts for US Army, again confirming competitiveness in US market.
- Strong order backlog and positive growth trend expected to be reflected in the remaining quarters of 2008.
The Group’s first quarter revenues were NOK 100.3 million, an increase of 85% compared with the same quarter last year (NOK 54.3 million). The growth rate for this quarter is due to expansion of production capacity in Norway and increasing market penetration as a result of a combined sales effort from Lerc and Comrod, especially in international defense communication segments. Operating profit (EBIT) for the quarter was NOK 11.1 million, up from NOK 5.5 million last year. The negative impact of the weakened USD was offset by strong operational performance at both the Comrod and Lerc factories.
New strategic contracts were secured in the first quarter of 2008, ensuring revenues for the year and a basis for further growth.
Financial results indicate that the Group has achieved the planned operational efficiency at the new and higher turnover level, thus generating strong financial results overall.
Order intake in the first quarter is above last year’s level, and reflects the strong market foothold established in recent years and the introduction of new products to the market; one of them the new Comrod multiband antenna. Newly developed products, from our business units, are ready to be launched during this year, with possibilities for further growth.
OUTLOOK
The Board is satisfied with the results for Q1 confirming the new and higher level from Q4 last year. Q2 is expected to give a satisfactory result at a slightly lower level. However, the Board expects 2008 to show continued growth in revenues and EBIT. Further sales growth combined with increased production capacity provide a good basis to reach the Group’s strategic target of growing revenues to NOK 500 million by 2010-2011
The chairman and CFO will give a presentation of the Q1 results at Felix conference center, Oslo today 6th May at 13.00.
The quarterly report is enclosed.
Financial report 1st quarter 2008 (pdf, 0,6 Mb)
For further information please contact:
Erik Espeset, chairman, mobile phone +47 905020033 or
erik.espeset@hexagon.no
Kjell Ove Hatlem, CFO, mobile phone +47 48 13 1065 or
koh@comrod.com 