Photo: C-COM

C-COM Satellite Systems (C-COM) is to suspend dividends and prioritize investing in the commercialization of its Ka-band electronically steered antenna (ESA). The Canadian company will suspend its traditional quarterly dividend of $0.0125 per common share effective immediately. The company announced the move earlier this week.

C-COM believes by doing this it is taking proactive approach to ensuring long-term growth and enhancing shareholder value by focusing on initiatives that strengthen C-COM’s competitive position and future profitability. C-COM’s plan is to bring a compact 1K element ESA system to market in late 2025, followed by the launch of a more robust 4K ESA in early 2026. The company hopes this move will ultimately lead it to build a stronger and more resilient company.

“The primary focus of C-COM over the next couple of years is to bring these leading-edge antenna systems to market and make it possible to also fund a few other significant R&D developments which are in the last stages of completion. We already have considerable cash resources to fund these efforts. Our decision to temporarily suspend the dividend was not made lightly, given our long track record of such payments over the past 50 quarters,” Leslie Klein, president and CEO, C-COM Satellite Systems, said in a statement.