Dr. Leslie Klein reports

C-COM REPORTS FIRST QUARTER RESULTS

C-Com Satellite Systems Inc. has released its financial results for the first quarter ended Feb. 28, 2023.

The company has generated revenues of $683,949 and a net loss after taxes of $176,135. This compares with revenues of $3,000,052 and net income after taxes of $593,575, or one cent per share, for Q1 2022.

The Q1 2023 working capital of $24,557,633 compares with $25,366,504 in working capital reported by the company as of Nov. 30, 2022, representing a 3-per-cent decrease.

The company paid out $522,330 in dividends during this first quarter, compared with $509,268 in the first quarter of 2022, a 2.6-per-cent increase. The quarterly dividend payout has been maintained by the company, while it continues to innovate and invest into the next generation of advanced antenna products.

The company also announced the payment of its eligible quarterly dividend in the amount of 1.25 cents per common share payable on May 16, 2023, to all shareholders of record as of May 2, 2023. Based on the closing price of $1.21 per share on April 18, 2023, this dividend represents a yield of 4.1 per cent on an annualized basis. This is the company's 44th consecutive quarterly dividend.

"The challenges mentioned in our 2022 annual report continue. Demand for our products remained sluggish throughout Q1 in the face of global fears of recession and continued inflation," said Dr. Leslie Klein, president and chief executive officer of C-Com Satellite Systems.

"Despite these difficulties, our gross margin performance increased to 68 per cent, which was stronger than usual. We are also now seeing an increased demand for our existing products from several new vertical market sectors and a very high interest in our phased array antenna, which is in its final stages of development," continued Dr. Klein.

"We remain cautiously optimistic about the future. The need for emergency communications and cellular backhaul has been rapidly increasing. We are also anticipating an increased demand from the oil and gas and other commodity exploration activities, which have not been very active over the past few years."

Dr. Klein concluded: "Completion of the development and commercialization of our next-generation electronically steered antenna system (ESA) remains C-Com's primary R&D [research and development] focus. A new C-Com facility was opened early this year at the University of Waterloo campus to host the ESA development team. The ESA system is targeted for land mobility for use on all types of vehicles and sectors that would benefit from an always-on connectivity."

About C-Com Satellite Systems Inc.

C-Com Satellite Systems is a pioneer and world leader in the design, development and manufacture of transportable and mobile satellite-based antenna systems. The company has developed proprietary, auto-acquisition controller technology for rapid antenna pointing to a satellite with just the press of a button, enabling broadband Internet through satellite across a wide range of market applications worldwide, including regions unserved or underserved by terrestrial access technologies.

C-Com has sold more than 10,000 antenna systems, in over 100 countries, through a dedicated dealer network that provides service to a wide range of vertical markets such as oil and gas exploration, military communications, disaster management, SNG (satellite news gathering), emergency communications, cellular backhaul, telemedicine, mobile education, government services, mobile banking, and others. The company's iNetVu brand is synonymous with high quality, reliability and cost-effectiveness.

C-Com is in late-stage development of a revolutionary Ka-band, electronically steerable, flat-panel phased array antenna system, in co-operation with the University of Waterloo, with the intent of providing low-cost, high-throughput mobility applications over satellite for land, airborne and maritime applications.

The company is publicly traded on the TSX Venture Exchange under the symbol CMI and on the OTCQB under the symbol CYSNF.

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