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Global Invacom Q2 profit down 76% on slower satellite equipment orders

GLOBAL Invacom, a mainboard-listed provider of satellite communications equipment, on Friday posted a 76.4 per cent drop in second-quarter net profit to US$0.2 million, down from US$0.9 million a year ago.

These represent net margins of 0.8 per cent and 2.9 per cent respectively. Excluding the write-back of payables amounting to US$0.6 million following the closure of the company’s non-core subcontracting site for the second quarter, net margins would be 0.8% and 1.0%, respectively, said Global Invacom.

Revenue fell 11 per cent to US$26.4 million for the three months ended June 30, on slower orders from key customers in the US, from US$29.9 million for the same period last year, the company said.

Earnings per share decreased to 0.8 Singapore cent, down from 0.32 cent in the previous year.

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No dividends have been recommended for the period.

Tony Taylor, executive chairman of Global Invacom, said: “The satellite ground equipment sector is undergoing a once-in-a-decade technological shift, and the company is very well placed to benefit. The innovative products that we are developing such as new slimline products, low-cost LNBs (low-noise block downconverters) and new satellite antennas are in continual demand.

“Our core focus remains to leverage our position in the market to drive sales, and to continue driving R&D, to develop innovative, market leading products that meet customer demands.”

The company has been on the Singapore Exchange’s watch list since June 2018 due to the minimum trading price criterion.