Norsat Exec Highlights Satellite Diversification Strategy

Norsat’s President and CEO Amiee Chan

Courtesy of Norsat

[Satellite TODAY 05-20-13] An expanded product line and greater international focus are key points of Canadian-based Norsat International’s plan to bounce back from sluggish first quarter 2013 earnings. Amiee Chan, president and CEO of Norsat International, told SatelliteTODAY.com that her company has already begun to sell products to militaries and companies outside of the United States as a part of a diversification process.

“We are able to take products initially designated for the United States government and military and provide those products to a new list of customers,” Chan said.

Chan said current U.S. budget sequestration cuts are the main reason her company has looked at sales opportunities beyond U.S. borders, in order to help offset declining revenues. “[Opportunities] include other militaries such as NATO and commercial customers such as First Nations Emergency Service Society,” she said.

As previously reported by SatelliteTODAY.com, Norsat’s recently released revenue numbers for the first quarter of 2013 was only $8.4 million, compared to $10.4 million during the same period in 2012.

As a result, company officials slashed expenses for the three months ending March 31, 2013. Thus, total expenses decreased to $3.0 million, from $3.8 million in the first quarter of 2012. But despite a 20 percent revenue decrease, Norsat officials remain optimistic.

Among the reasons for the enthusiasm, Chan pointed to the recent acquisition of a U.S.-based satellite communications business, which is anticipated to “add modest revenues in 2013.”

Chan said she is optimistic as her company looks forward to acquiring more companies. “We see opportunities for more acquisitions at good prices,” she said.

The acquisitions along with diversification of clients to militaries beyond the United States have and will likely continue to serve as a catalyst to turning around declining revenues, Chan said.

“We’ve actually gained traction with militaries around the world as well as commercial space,” she said.

Norsat’s recent acquisition of a U.S.-based satellite communications company for $530,170 will add a host of new products and associated IP that align with Norsat’s existing product roadmap. It will also allow Norsat to immediately enter new and additional areas within the satellite communications markets with solid state power amplifiers and high power block upconverters.

Norsat’s expanded product line doesn’t end there.

“We’ve always had the intention to expand to the transmit side. And now we’ve just launched these types of products which are now available on our website,” Chan said.

Yet another reason for Chan’s optimism, she believes the sequestration will not last. “We’re optimistic because we see these cutbacks as temporary,” she said.

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Norsat Exec Highlights Satellite Diversification Strategy