Pinched by loonie

Satellite sub-systems maker COM DEV International posts revenue of $43.4 million in Q4, a 4% increase from a year earlier but less than its forecast of $45 million. Profit fell from $5.3 million to $4.1 million, hurt by the effects of the strong loonie on ComDev.jpgCanada’s “export-driven” space technology sector, says COM DEV. “It’s not just the quantum of the currency shift that causes problems, it’s the rate of change,” notes CEO John Keating “A lot of the contracts we are working on today were negotiated six months, a year, or even longer ago.” Full-year revenue rose 6.9% to $164.3 million, but profit was halved to $10.9 million from $21.2 million in 2006. Mr. Keating, nonetheless, remains positive. Pointing to the company’s record backlog of orders, valued at $146 million, he predicts revenue will grow by 10-15% in 2008, given the exchange rate stabilizes.

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