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Norsat International (NSATF.OB) Posts Q3 Results; Anticipates Strong Q4

Norsat International Inc., a leading broadband communications solutions provider, today announced its financial results for the three-month period ended September 30, 2010.

The company posted total revenues for the third quarter at $4.5 million, up 12.6 percent from $5.1 million reported in the comparable quarter of 2009. The company said consistency in the sales of its microwave products helped offset a decrease in satellite systems sales for the quarter.

Third-quarter gross margin was 47.6 percent compared to 47.8 percent for the same period the year prior. The margin improvement is attributed to higher-end products and new product introductions, which generated healthier margins.

Norsat reported that selling, general and administrative expenses for the three months ended September 30, 2010, decreased to $1.3 million compared to $1.4 million for the same period in 2009.

Total operating expenses for the third quarter of 2010 were reported at $1.5 million, down from $1.8 million in the third quarter of 2009.

Third-quarter net earnings were $0.6 million, or $0.01 per share, consistent with $0.6 million, or $0.01 per share, during for the same period last year.

Dr. Amiee Chan, Norsat president and CEO, said while top-line results decreased, the company anticipates a solid fourth quarter.

“Top-line third quarter results were lower than one year ago but were due to the timing in receiving new orders, which were received very late in the third quarter. As a result, we do expect a strong fourth quarter, when majority of that backlog is anticipated to be delivered. We still managed to produce a highly profitable quarter despite the lower revenue level that was reported, which is a true testament to our disciplined cost structure and the fact that our margins remained relatively stable. Our capital structure remains strong and we intend to utilize these resources to grow the company through inorganic means,” Dr. Chan stated.

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