Attention Business Editors:
COM DEV secures contracts and supply agreements in excess of $65 million
CAMBRIDGE, ON, Nov. 15 /CNW/ - COM DEV International Ltd. (TSE/ME:CDV)
today announced that its Space and Wireless Groups have secured contract
awards and supply agreements in excess of $65 million in recent weeks.
Further details will be provided when our major corporate customers provide
approvals for the press releases.
``These contracts and agreements support our objective to deliver
profitable growth and to broaden our business base by penetrating new
markets,' said Keith Ainsworth, President and Chief Executive Officer. ``Our
business plan for fiscal 2000 calls for a 15% increase in consolidated revenue
and a return to profitability.'
Operations Update
Wireless Group
The Company expects the demand for the existing generation of wireless
products to remain strong, driven by growth of 15-20% a year in the PCS and
cellular infrastructure markets. With the imminent introduction of new
data-ready mobile systems based on EDGE and GPRS technology platforms, the
company expects to see the demand for mobile data (i.e. mobile Internet)
become another factor that will enhance demand for its products. Installation
of follow-on broadband 3rd generation mobile solutions, expected in late 2001,
is expected to support sustained growth in wireless markets at similar growth
rates out to 2005.
``Because minutes of use are increasing at such a fast pace, wireless
solutions are now cost competitive with wireline solutions and this will fuel
the growth of the market over the next five years,' said Peter Scovell,
President of the Wireless Group.
Space Group
The Space Group plans to build on its business of supplying equipment to
the geostationary satellite market, where customers have a solid track record
of profits and cash flow. This business provides the opportunity for moderate
growth and the basis for solid, profitable business.
``For the longer term we continue to believe in the future of multi-media
satellite systems, despite the much publicised problems of ICO and
Iridium(R),' said John Keating, President of the Space Group. ``Once the
correct business model is found for these systems, COM DEV will be ready to
benefit as a competitive and reliable provider of advanced technology products
for these systems.'
Canadian-based COM DEV International is the largest Canadian-owned
designer, manufacturer and distributor of space and ground-based wireless
products and subsystems through its two divisions: the Space Group and the
Wireless Group. COM DEV employs more than 1,100 people in facilities in
Ontario, New Brunswick, the United States, the United Kingdom and China.
The Space Group manufactures advanced products that are sold to the major
satellite prime contractors for use in earth science and commercial
communications satellites. The Wireless Group manufactures ground-based
infrastructure subsystems used in microwave and radio frequency systems, such
as GSM and CDMA-based digital telephone systems, and wireless local loop
networks. These products are sold primarily to major PCS wireless equipment
vendors.
This news release may contain certain forward-looking statements that
involve risks and uncertainties. Actual results may differ materially from
results indicated in any forward-looking statements. The company cautions
that, among other things, in view of the rapid changes in the wireless
communications markets and technologies, and other risks including the cost
and market acceptance of the company's new products, the level of individual
customer procurements and competitive product offerings and pricing, and
general economic circumstances, the company's business prospects may be
materially different from forward-looking statements made by the company.
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For further information: Investor and Media Contact: Anita Davis, Vice President, Corporate Development, Tel: (519) 622-5004, Fax: (519) 622-1691, E-mail: investor.relations@comdev.ca, Website: www.comdev.ca; Analyst Contact: David Belbeck, Chief Financial Officer, Tel: (519) 622-2300 ext. 2288, Fax: (519) 622-2158, E-mail: david.belbeck@comdev.ca; To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw. |
