Comtech Telecommunications Corp. Announces Results for the Second Quarter of Fiscal 2014

Melville, NY,  March 6, 2014--Comtech Telecommunications Corp.today reported net sales for the second quarter of fiscal 2014  of  US $85.5 million compared to US$ 74.6 million for the second quarter of fiscal 2013. The period-over-period increase reflects higher sales in the Company's telecommunications transmission and RF microwave amplifiers segments, partially offset by lower sales in its mobile data communications segment.

GAAP net income was US$6.0 million, or $0.32 per diluted share, for the second quarter of fiscal 2014 as compared to US$ 2.4 million, or $0.14 per diluted share, for the second quarter of fiscal 2013.

Net sales for the six months ended January 31, 2014 were $168.9 million compared to $165.5 million for the six months ended January 31, 2013. GAAP net income was $11.3 million, or $0.60 per diluted share, for the six months ended January 31, 2014 as compared to $9.8 million, or $0.51 per diluted share, for the six months ended January 31, 2013.

Based on the company's year-to-date results and anticipated second half performance, the company is maintaining its fiscal 2014 revenue guidance, which is expected to range from $325.0 million to $345.0 million, and its adjusted EBITDA guidance, which is expected to be in the range of US$ 55.0 million to US$59.0 million. As a result of stock repurchases, the company is increasing its GAAP diluted earnings per share guidance to a range of $1.14 to $1.26.

In commenting on the company's performance and updated fiscal 2014 business outlook, 
Fred Kornberg, President and Chief Executive Officer, stated, "Although market conditions are difficult, we are pleased with our solid financial performance through the second quarter of fiscal 2014."

Selected Fiscal 2014 Second Quarter Financial Metrics:

• Backlog as of January 31, 2014 was $168.0 million compared to $182.8 million as of October 31, 2013.
• Total bookings for the three and six months ended January 31, 2014 were $70.7 million and $147.2 million, respectively, compared to $67.7 million and $138.0 million for the three and six months ended January 31, 2013, respectively.
• Adjusted EBITDA was $15.5 million and $29.8 million for the three and six months ended January 31, 2014, respectively, as compared to $10.1 million and $28.6 million for the three and six months ended January 31, 2013, respectively. Adjusted EBITDA is a Non-GAAP financial measure and is defined in the below table.
• The Company's effective income tax rate for the three months ended January 31, 2014 was 36.4%. The Company's effective income tax rate for the twelve months ending July 31, 2014 is expected to approximate 36.5%, excluding any discrete tax adjustments.
• At January 31, 2014, the Company had $318.0 million of cash and cash equivalents.

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