Comtech Posts Sales of $160.8 Million in 1Q 2019, Gets $157.4 Million Bookings
Melville, N.Y., Dec. 6, 2018 — Comtech Telecommunications Corp. (NASDAQ: CMTL) today reported its operating results for the first fiscal quarter ended October 31, 2018 and updated its fiscal 2019 guidance.Comtech said net sales for the first quarter of fiscal 2019 were US$ 160.8 million as compared to the US$ 121.6 million achieved during the first quarter of fiscal 2018. It also recorded bookings during the first quarter of fiscal 2019 worth $157.4 million, with a company-wide book-to-bill ratio (a measure defined as bookings divided by net sales) of 0.98. The company said backlog as of October 31, 2018 reflects a near record high of US$ 627.3 million.
Among the strategic contracts and orders it got include: (i) over US$ 28.4 million of orders to supply Manpack Satellite Terminals, networking equipment and other advanced VSAT products to the U.S. Army; (ii) a US$ 6.8 million contract renewal to provide a GPS-enabled application to a key Fortune 100 customer; (iii) a strategic contract valued at $5.5 million from a global telecommunications and media company to provide virtualized mobile service device location platforms supporting various location-based services; (iv) US$ 5.4 million of orders to provide ongoing sustainment services to the U.S. Army for the AN/TSC-198A SNAP (Secret Internet Protocol Router and Non-classified Internet Protocol Router Access Point), Very Small Aperture Terminals; (v) a multi-year US$ 1.9 million order from a top U.S. telecom service provider for hosted data assistance services related to the delivery of LBS; and (vi) a multi-year contract extension totaling $1.2 million to provide Federal Communications Commission mandated enhanced 911 and emergency call routing services to a U.S. wireless carrier.
Comtech also reported a GAAP operating income of $7.3 million, GAAP net income of US$ 3.5 million and GAAP diluted earnings per share of $0.14 was impacted by several steps taken by Comtech to improve operating efficiencies and make progress towards achieving its long-term business goals. Its adjusted EBITDA was US$ 18.0 million.
In commenting on Comtech’s performance for the first quarter of fiscal 2019, Fred Kornberg, president and CEO, noted that the results for the first quarter exceeded his expectations and the company pipeline of opportunities remains strong. “Based on our outstanding first quarter performance, we are increasing our targeted goals for consolidated net sales and Adjusted EBITDA and expect fiscal 2019 to be another successful year," he said.
The company also said it is increasing its fiscal 2019 consolidated net sales goal to a range of approximately US$ 625.0 million to US$ 640.0 million as compared to the prior range of US$ 600.0 million and US$ 625.0 million.
Comtech's updated GAAP net income per diluted share target for fiscal 2019 is now US$ 0.95 to $1.08. This GAAP EPS metric reflects all facility exit costs, acquisition plan expenses, write-off of deferred financing costs and net discrete tax benefits.
Comtech is also increasing its Adjusted EBITDA goal to a range of US$ 84.0 million to US $ 88.0 million. If order flow remains strong and Comtech can achieve all of its fiscal 2019 business goals, it is possible that financial results could be higher than its targeted amounts.
Although Comtech's GAAP consolidated operating income and adjusted EBITDA in the second half of fiscal 2019 are still expected to be higher than the first half of fiscal 2019, it now expects a more balanced year. The company said Comtech’s second quarter consolidated net sales, operating income and Adjusted EBITDA are expected to be nearly the same as its first quarter of fiscal 2019. Comtech's third quarter results for fiscal 2019 are expected to be better than its expected results for the second quarter of fiscal 2019.
Comtech still expects its fourth quarter of fiscal 2019 to be the peak quarter for consolidated net sales, operating income and Adjusted EBITDA. Comtech's updated 2019 fiscal year financial targets include a number of items, the timing of which can still shift and impact its quarterly financial performance. However, Comtech currently does not believe that changes in such timing would negatively impact its ability to achieve its updated 2019 fiscal year financial targets.
Related Articles:
Comtech Telecommunications Corp. Enters Into New US$ 550.0 Million Credit Facility
Comtech Xicom Awarded Over $20-M Contract for High Frequency SATCOM Amplifiers, $2-M for TWTAs
Comtech EF Data Receives US$ 1.3 Million Order for Satellite Communications Infrastructure Equipment
Comtech Xicom Awarded Follow-on Contract for Military SATCOM TWTAs
