Norsat International Inc. (TSX:NII) turned a half-million-dollar profit in its fourth quarter last year and, despite a drop in revenue, narrowed its 2006 net loss to $4.4 million versus $5.89 million in 2005.
The designer of microwave systems and portable satellite technology, which recently moved its headquarters from Burnaby to Richmond, reported sales of $15.26 million, down 15.8% from the $18.12 million it rang up in the previous year. The company attributed the sales drop to price erosion and delays in U.S. government spending last year.
However, Norsat reduced the impact of the sales drop by decreasing its 2006 operating costs to $10 million, which was 20% less than in 2005.
Norsat share price range during the past week: between $0.93 and $0.98; 52-week high: $1.02; 52-week low: $0.35.