Comtech Announces Results for its 2Q of Fiscal 2022 and Updates 2022 Financial Targets
Melville, NY, March 10,2022--Comtech Telecommunications Corp. (NASDAQ: CMTL) today announced its second quarter fiscal 2022 financial results and updated its fiscal 2022 financial targets. Comtech announced results and updated financial targets in a new investment letter format that it intends to use for quarterly communications. Here's a link to the letter: https://www.comtechtel.com/static-files/ae9ebe0c-104d-4eb9-ab75-fe974e853c17
Key Second Quarter 2022 Financial Highlights include:
• Consolidated net sales were $120.4 million, up 3.1% sequentially from Q1 2022;
• GAAP net loss attributable to common stockholders was $23.5 million, and included $13.6 million of CEO leadership transition charges (of which $7.4 million related to amortization of stock-based awards) and $9.1 million related to settled proxy contest;
• GAAP EPS loss of $0.89 and Non-GAAP EPS loss of $0.03;
• Adjusted EBITDA was $9.8 million, a 76.7% sequential increase from Q1 2022.
• New bookings, also referred to as orders, were $102.9 million, a 19.2% sequential increase from Q1 2022, resulting in a quarterly book-to-bill ratio of 0.86x (a measure defined as bookings divided by net sales);
• Q2 2022 ending backlog was $611.1 million compared to $628.5 million as of the end of Q1 2022; • Our revenue visibility is approximately $1.2 billion. We measure this revenue visibility as the sum of our $611.1 million backlog plus the total unfunded value of certain multi-year contracts that the company received and from which we expect future orders; and
• Generated $4.8 million of cash flows from operating activities despite making $2.8 million of cash payments for settled proxy contest.
In the letter to investor, Comtech President and CEO Michael Porcelain also announced revision to their financial targets for fiscal year 2022, as follows:
- Fiscal 2022 consolidated net sales to approximate $520.0 million.
- Adjusted EBITDA to approximate $50.0 million or 9.6% of targeted net sales.
"Financial performance during the second half of fiscal 2022 is still expected to improve versus the first half of fiscal 2022. Q3’s consolidated net sales and Adjusted EBITDA are expected to approximate $122.0 million and $10.0 million, respectively – with the remainder of our targeted fiscal 2022 consolidated net sales and Adjusted EBITDA occurring in Q4," said Porcelain.
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