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June 9, 2021

Comtech Telecommunications posts net sales of $139.4m in third quarter

Comtech reports strong third quarter operating performance with adjusted EBITDA significantly exceeding expectation.

Comtech Telecommunications has posted $139.4m net sales in the third quarter of fiscal year 2021 compared to $135.1m in last year’s same quarter.

The company said that 79.8% of net sales were attributed to US-based customers, with 20.2% to international customers.

Its gross profit percentage was 38% compared to the 39.2% reported in the third quarter of 2020.

In the quarter, consolidated GAAP operating income was reported to be $2.4m, net income was $800,000 and net income per diluted share (EPS) was $0.03.

In April this year, it incurred $5.3m of acquisition plan expenses due to settlement of the 2019 GD NG-911 acquisition related litigation and closing of the UHP acquisition.

Adjusted EBITDA, which exceeded the company’s expectation, was $17.7m, or 12.7% of consolidated net sales for the quarter.

The company’s book-to-bill ratio was 0.83 with $115.9m in bookings during the quarter. As of 30 April, its backlog was $636.5m.

Comtech’s potential future revenue visibility is approximately $1.1bn when the backlog is added to the total unfunded value of multi-year contracts received.

During the quarter, cash generated by operating activities was $6.8m. As of 30 April, the company had $39.2m of cash and cash equivalents and $215m in total debt outstanding.

Comtech board chairman and chief executive officer Fred Kornberg said: “Thanks to the hard work of all of our team members, we achieved solid operating performance and have recently secured important contract awards that bode well for our future.

“We are continuing to invest in new state-of-the-art production and engineering facilities as well as new next-generation wireless technology solutions that we believe our customers will want in the post-Covid-19 pandemic economic recovery.

“Looking forward, we are confident that we will have a strong finish to fiscal 2021 and achieve growth in fiscal 2022.”

The company estimates fiscal 2021 consolidated net sales to be within a range of $580m to $590m and target adjusted EBITDA in the range of $74m to $76m.

In May, the company secured funding to continue supporting the US Army’s Blue Force Tracking (BFT) System.

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