New satellite equipment contracts for Com Dev

Posted: October 22, 2010 in General Information, What's Happening Now!
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CAMBRIDGE, Ont. – Com Dev International Ltd. (TSX:CDV) has won two contracts worth more than $12 million combined to provide equipment for the same satellite.

“We are very pleased to see two divisions of our organization win contracts on the same spacecraft,” acting CEO Michael Pley said Wednesday.

“Both had to compete separately for the business, and their joint success demonstrates the leadership each enjoys in its respective market, as well as the synergies available to us from our U.S. expansion strategy.”

In the first deal announced Wednesday, the Cambridge based manufacturer of space hardware subsystems said it will provide switches, multiplexers and filters for the commercial communications satellite.

The contract is worth more than C$6 million and is part of a broader agreement with a total potential value of more than $23 million, the company said. It did not name its customer.

Com Dev said it expects to complete work on the current contract by the end of fiscal 2011 at its plant in Cambridge.

“This latest order reinforces the fact that our core commercial products business, which typically generates more than 60 per cent of our revenue, is performing very well this year,” Pley said in a release.

In the second deal, announced after markets closed, Com Dev said its U.S. subsidiary has been awarded another contract worth more than US$6 million to provide UHF microwave equipment for the same satellite.

Design and production for that project will be performed at Com Dev USA’s plant in El Segundo, Calif., and delivery is scheduled for the end if 2011.

Com Dev operates plants in Canada, the United Kingdom and the United States and makes components used in communications, space science, remote sensing and military satellites.

Shares in the company gained six cents, or 2.84 per cent, to close at $2.17 Wednesday on the Toronto Stock Exchange.

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