[Satellite TODAY 09-07-10] Canadian satellite company Com Dev has dismissed CEO John Keating, effective immediately, after announcing heavy losses in its 2010 third quarter, which resulted in a 5 percent cut of its work force (about 81 jobs) and the termination of several product lines, the company announced.
    The company said its poor performance in 2010 was directly attributed to losses on five satellite contracts with the Canadian government. These programs, now 86 percent completed, represent a steadily decreasing proportion of its revenues, falling from 5 percent from the last quarter to 2 percent of revenues by the second half of next year.
    Com Dev Chairman Terry Reidel said that while he endorsed Keating’s business strategy, the company had suffered from poor program management. COO Mike Pley has been named interim CEO while the company searches for a permanent replacement.
    Com Dev will start cutting its resources across the board, but maintain its investments in its Com Dev USA subsidiary and ExactEarth. The company will take a severance charge of about $2.8 million in the fourth-quarter for Keating’s contract.
    Com Dev International posted a net loss of about $1.6 million in its 2010 third quarter, compared with a net income of $4.89 million in the same period last year, according to its preliminary results, issued Aug. 27.
    The company was hurt by higher costs during the quarter, with revenues falling 15 percent to $49 million. The fall in profits caused Com Dev to lower its revenue projections for 2010. The company now expects revenues to be 5 percent lower than its 2009 results.