COM DEV International Ltd. (TSX:CDV) today announced its first quarter financial results for the three-month period ended January 31, 2008.

All amounts are stated in Canadian dollars unless otherwise noted.

First Quarter Highlights

* Revenue was $44.9 million, an increase of 14% over the $39.5 million recorded in Q1 2007.
* Gross margin was 22%, compared to 29% in the first quarter of 2007.
* Net income was $1.4 million, or $0.02 per share, compared to $5.6 million or $0.08 per share for the prior year period.
* New orders won in the first quarter totaled $33 million, compared to $22 million a year earlier and $55 million in the fourth quarter of fiscal 2007.
* Backlog at quarter-end was $133 million, compared to $146 million at 2007 year-end.
* Subsequent to quarter-end COM DEV acquired the Passive Microwave Devices product line of L-3 Communications Electron Technologies Inc. for US$12.2 million.

"For the third consecutive quarter, we established a new record for revenues recorded in a single quarter by COM DEV Space. The achievement is especially meaningful for having occurred in what is traditionally the slowest quarter of our fiscal year,” said John Keating, CEO of COM DEV. “While our profitability continues to be impacted by the start up costs of our U.S. operations, and an unfavourable currency environment, we expect to overcome both challenges this year, in part through ongoing strong growth. We remain confident in our estimate of 10 to 15% revenue growth on the year.”
Financial Review

COM DEV's fiscal 2008 first quarter revenues of $44.9 million represented an increase of $5.4 million or 14% over the previous year. Historically, first quarter revenues are the lowest of the year. In Q1 2008 the Company benefited from high levels of backlog and more employees to address that workload. The revenue split between the three segments was 64% commercial, 23% civil and 13% military. Management continues to expect annual revenue growth of 10-15% in fiscal 2008.

New orders totaled $33 million during the quarter, of which 48% were commercial, 48% were civil, and 4% were military. Backlog at quarter end was $133 million, down sequentially for the first time in four quarters, but was 49% higher than the same quarter last year. Backlog was split between the Company's commercial, civil and military sectors at a ratio of 53%, 37% and 10% respectively, compared to 57%, 30% and 13% at the end of fiscal 2007.

First quarter gross profit was $10.1 million, compared to $11.3 million in Q1 2007. The gross margin of 22%, while down from 29% a year earlier, represented an improvement from the 11% margin experienced in the fourth quarter of 2007, and was within management's guidance of the low 20% levels for early fiscal 2008. The Company expects to see margins continue to move towards its longer term margin guidance of mid to high twenty percent levels.

Selling, general and administrative expenses were $6.1 million in the first quarter, an increase of $2.0 million over the same period last year. The increase was attributable to $1.1 million of expenses related to the start-up of operations in California, and $0.8 million of costs associated with activity related to the Board appointed Special Committee’s review of historic stock option granting practices.

Net research and development expense of $2.0 million was 28% higher than the Q1 2007 amount. Total R&D spending (before funding) of $2.8 million was below the levels seen in recent quarters, but management expects R&D spending to ramp up over the next three quarters, based on near and medium-term opportunities for product development and customer expansions.

Net income for the quarter was $1.3 million, down from $5.6 million in Q1 2007, while earnings per share were $0.02, down from $0.08 in Q1 2007.

COM DEV ended the first quarter of 2008 with $14.3 million of cash and equivalents compared to $31.7 million at October 31, 2007. Cash used in operating activities was $13.3 million, compared to $10.5 million of cash generated from operating activities in the previous quarter last year.

The Company’s basic share count averaged 68,037,092 (fully diluted: 68,160,789 ) in the first quarter of fiscal 2008, and stood at 68,037,418 on January 31, 2008.

About COM DEV

COM DEV International Ltd. (www.comdevintl.com) is a leading global designer and manufacturer of space hardware subsystems. With facilities in Canada, the United Kingdom and the United States, COM DEV manufactures advanced products and subsystems that are sold to major satellite prime contractors for use in communications, space science, remote sensing and military satellites.