Comtech Fiscal 1Q Income Drops to US$83.4-M, Lowers Fiscal 2014 Guidance

Melville, N.Y., Dec. 9, 2013 — Comtech Telecommunications Corp. has reported lower net sales for the first quarter of fiscal 2014 because of lower sales in its RF microwave amplifiers and mobile data communications segments. Comtech said net sales for the first quarter ended October 31, 2013 reached US$ 83.4 million compared to $91 million for the first quarter of fiscal 2013. But the company said it also experienced a surge in the sale of its telecommunications transmission segment.

Comtech’s GAAP net income wasUS$ 5.3 million, or $0.28 per diluted share, for the first quarter of fiscal 2014 compared toUS$ 7.4 million, or $0.36 per diluted share, for the first quarter of fiscal 2013.

Adjusted EBITDA was US$14.3 million for the first quarter of fiscal 2014, compared to US$18.5 million for the comparative period in fiscal 2013.

Updating its guidance for fiscal 2014, Comtech said revenues are now expected to range from US$325 million to US$345 million. GAAP diluted earnings per share is now expected to be between $1.12 and $1.25 while Adjusted EBITDA for fiscal 2014 is now expected to be in the range of US$55 million to US$59.0 million.

Fred Kornberg, President and Chief Executive Officer, said the company sees continued signs of stabilization that they observed in certain of our end-markets during the last quarter of our fiscal 2013. “We are pleased with our first quarter results and we believe that certain of our end markets may be improving,” he said.

Comtech also reported backlog amounting to $182.8 million as of October 31 compared to $189.7 million as of July 31, 2013. Total bookings for the three months ended October 31, 2013 were $76.5 million compared to $70.4 million during the same period in 2012.

Its Adjusted EBITDA was US$ 14.3 million for the three months ended Oct. 31, 2013 compared to US$18.5 million during the same period in 2012. Comtech said that as of Oct. 31, 2013, the company had $346.6 million of cash and cash equivalents.

Reporting on the company’s stock repurchase program, Comtech said that during the three months ended October 31, it had repurchased 124,753 shares of its common stock at an aggregate cost of approximately $3.6 million, including transaction costs. Since establishing the first repurchase program on Sept. 23, 2010, the company has repurchased a total of 12,845,030 shares of common stock for approximately $379.5 million, including 322,713 shares of common stock at an aggregate cost of approximately US$ 10 million repurchased during the period November 1, 2013 through December 6, 2013.