Company Website:
http://www.comtechtel.com
MELVILLE, N.Y. -- (Business Wire)
June 6, 2013 -- Comtech Telecommunications Corp. (NASDAQ: CMTL) today
reported its operating results for the three and nine months ended April
30, 2013.
Net sales for the third quarter of fiscal 2013 were $69.9 million
compared to $99.8 million for the third quarter of fiscal 2012. The
period-over-period decrease in net sales is due to lower net sales in
our mobile data communications and RF microwave amplifiers segments and,
to a much lesser extent, our telecommunications transmission segment.
GAAP net income was $2.9 million, or $0.17 per diluted share, for the
third quarter of fiscal 2013 as compared to $6.1 million, or $0.29 per
diluted share, for the third quarter of fiscal 2012.
Net sales for the nine months ended April 30, 2013 were $235.4 million
compared to $312.3 million for the nine months ended April 30, 2012.
GAAP net income was $12.7 million, or $0.69 per diluted share, for the
nine months ended April 30, 2013 as compared to $24.5 million, or $1.04
per diluted share, for the nine months ended April 30, 2012.
The Company also announced that it is updating its fiscal 2013 revenue
guidance to a range of $310.0 million to $320.0 million and its fiscal
2013 GAAP diluted earnings per share guidance to a range of $0.86 to
$0.92. Adjusted EBITDA for fiscal 2013 is expected to be between $49.0
million and $51.0 million. The updated diluted earnings per share
guidance reflects the impact of the Company’s repurchases of common
stock through June 5, 2013.
In commenting on the Company's performance and updated fiscal 2013
guidance, Fred Kornberg, President and Chief Executive Officer, stated,
“Despite difficult market conditions, we are pleased with our overall
third quarter results, particularly the receipt of several strategically
important new contracts. For the first time this fiscal year, our
quarterly book-to-bill ratio exceeded 1.0, and we expect the same to be
the case in the fourth quarter.”
Mr. Kornberg added, “We are excited about our long-term business
prospects and we are confident that we are on the right path to achieve
revenue and earnings growth in fiscal 2014.”
Selected Fiscal 2013 Third Quarter Financial Metrics and Other Items
-
Backlog as of April 30, 2013 was $130.1 million compared to $126.4
million as of January 31, 2013.
-
Total bookings for the three and nine months ended April 30, 2013 were
$73.6 million and $211.5 million, respectively, compared to $110.9
million and $304.7 million for the three and nine months ended April
30, 2012, respectively.
-
Adjusted EBITDA was $9.6 million and $38.2 million for the three and
nine months ended April 30, 2013, respectively, as compared to $15.4
million and $54.6 million for the three and nine months ended April
30, 2012, 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
April 30, 2013 was 22.3%, which reflects a discrete tax benefit of
approximately $0.5 million. The Company’s effective income tax rate
for the twelve months ending July 31, 2013 is expected to approximate
35.5%, excluding discrete tax adjustments.
-
During the three months ended April 30, 2013, the Company repurchased
542,495 shares of its common stock at an aggregate cost of
approximately $13.8 million (including transaction costs).
-
At April 30, 2013, the Company had $342.2 million of cash and cash
equivalents which does not reflect the subsequent repurchase of an
additional 95,888 shares of the Company’s common stock for an
aggregate cost of approximately $2.5 million (including transaction
costs) from May 1, 2013 through June 5, 2013 or the quarterly dividend
payment of $4.5 million which was paid on May 21, 2013. Since
establishing the Company’s first repurchase program on September 23,
2010, the Company has repurchased a total of 12,389,303 shares of
common stock for approximately $365.7 million (including transaction
costs). The Company can make additional repurchases of up to $34.6
million pursuant to its existing $50.0 million stock repurchase
program.
-
Additional information about the Company’s updated fiscal 2013
guidance is contained in the Company’s third quarter investor
presentation which is located on the Company’s website at www.comtechtel.com.
Conference Call
The Company has scheduled an investor conference call for 8:30 AM (ET)
on Friday, June 7, 2013. Investors and the public are invited to access
a live webcast of the conference call from the investor relations
section of the Comtech web site at www.comtechtel.com.
Alternatively, investors can access the conference call by dialing (866)
952-1906 (domestic), or (785) 424-1825 (international) and using the
conference I.D. of “Comtech.” A replay of the conference call will be
available for seven days by dialing (800) 283-4593 or (402) 220-0872. In
addition, an updated investor presentation, including earnings guidance,
is available on the Company’s web site.
About Comtech
Comtech Telecommunications Corp. designs, develops, produces and markets
innovative products, systems and services for advanced communications
solutions. The Company believes many of its solutions play a vital role
in providing or enhancing communication capabilities when terrestrial
communications infrastructure is unavailable, inefficient or too
expensive. The Company conducts business through three complementary
segments: telecommunications transmission, RF microwave amplifiers and
mobile data communications. The Company sells products to a diverse
customer base in the global commercial and government communications
markets. The Company believes it is a market leader in the market
segments that it serves.
Cautionary Statement Regarding Forward-Looking Statements
Certain information in this press release contains forward-looking
statements, including but not limited to, information relating to the
Company’s future performance and financial condition, plans and
objectives of the Company’s management and the Company’s assumptions
regarding such future performance, financial condition, and plans and
objectives that involve certain significant known and unknown risks and
uncertainties and other factors not under the Company’s control which
may cause its actual results, future performance and financial
condition, and achievement of plans and objectives of the Company’s
management to be materially different from the results, performance or
other expectations implied by these forward-looking statements. These
factors include the nature and timing of receipt of, and the Company’s
performance on, new or existing orders that can cause significant
fluctuations in net sales and operating results; the timing and funding
of government contracts; adjustments to gross profits on long-term
contracts; risks associated with international sales; rapid
technological change; evolving industry standards; frequent new product
announcements and enhancements; changing customer demands; changes in
prevailing economic and political conditions; risks associated with the
Company’s legal proceedings and other matters; risks associated with
certain U.S. government investigations; risks associated with the
Company’s BFT-1 contracts and the post-award audit of its original BFT-1
contract; risks associated with the Company’s obligations under its
revolving credit facility; and other factors described in the Company’s
filings with the Securities and Exchange Commission.
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
|
|
| | |
| |
| |
| |
Three months ended April 30,
|
| |
Nine months ended April 30,
|
|
| |
2013
|
|
2012
| |
2013
| |
2012
|
| | | | | | | |
|
|
Net sales
| |
$
|
69,856,000
| | |
99,793,000
| | |
235,386,000
| | |
312,295,000
| |
|
Cost of sales
| |
38,429,000
|
| |
58,115,000
|
| |
129,916,000
|
| |
177,921,000
|
|
|
Gross profit
| |
31,427,000
|
| |
41,678,000
|
| |
105,470,000
|
| |
134,374,000
|
|
| | | | | | | |
|
|
Expenses:
| | | | | | | | |
|
Selling, general and administrative
| |
15,374,000
| | |
20,005,000
| | |
47,617,000
| | |
63,749,000
| |
|
Research and development
| |
9,080,000
| | |
9,481,000
| | |
28,407,000
| | |
28,609,000
| |
|
Amortization of intangibles
| |
1,582,000
|
| |
1,626,000
|
| |
4,746,000
|
| |
5,037,000
|
|
| |
26,036,000
|
| |
31,112,000
|
| |
80,770,000
|
| |
97,395,000
|
|
| | | | | | | |
|
|
Operating income
| |
5,391,000
| | |
10,566,000
| | |
24,700,000
| | |
36,979,000
| |
| | | | | | | |
|
|
Other expenses (income):
| | | | | | | | |
|
Interest expense
| |
2,009,000
| | |
2,192,000
| | |
6,150,000
| | |
6,521,000
| |
|
Interest income and other
| |
(287,000
|
)
| |
(370,000
|
)
| |
(878,000
|
)
| |
(1,300,000
|
)
|
| | | | | | | |
|
|
Income before provision for income taxes
| |
3,669,000
| | |
8,744,000
| | |
19,428,000
| | |
31,758,000
| |
|
Provision for income taxes
| |
817,000
|
| |
2,678,000
|
| |
6,776,000
|
| |
7,270,000
|
|
| | | | | | | |
|
|
Net income
| |
$
|
2,852,000
|
| |
6,066,000
|
| |
12,652,000
|
| |
24,488,000
|
|
| | | | | | | |
|
|
Net income per share:
| | | | | | | | |
|
Basic
| |
$
|
0.17
|
| |
0.32
|
| |
0.74
|
| |
1.18
|
|
|
Diluted
| |
$
|
0.17
|
| |
0.29
|
| |
0.69
|
| |
1.04
|
|
| | | | | | | |
|
|
Weighted average number of common shares outstanding – basic
| |
16,731,000
|
| |
18,853,000
|
| |
17,141,000
|
| |
20,746,000
|
|
| | | | | | | |
|
|
Weighted average number of common and common equivalent shares
outstanding – diluted
| |
16,827,000
|
| |
24,910,000
|
| |
23,221,000
|
| |
26,724,000
|
|
| | | | | | | |
|
|
Dividends declared per issued and outstanding common share as of the
applicable dividend record date
| |
$
|
0.275
|
| |
0.275
|
| |
0.825
|
| |
0.825
|
|
| | | | | | | | | | | | |
|
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
|
|
| |
| |
| |
April 30, 2013
| |
July 31, 2012
|
|
Assets
| |
(Unaudited)
| |
(Audited)
|
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
342,197,000
| | |
367,894,000
| |
|
Accounts receivable, net
| |
47,904,000
| | |
56,242,000
| |
|
Inventories, net
| |
71,101,000
| | |
72,361,000
| |
|
Prepaid expenses and other current assets
| |
10,737,000
| | |
8,196,000
| |
|
Deferred tax asset, net
| |
9,780,000
|
| |
12,183,000
|
|
|
Total current assets
| |
481,719,000
| | |
516,876,000
| |
| | | |
|
|
Property, plant and equipment, net
| |
20,858,000
| | |
22,832,000
| |
|
Goodwill
| |
137,354,000
| | |
137,354,000
| |
|
Intangibles with finite lives, net
| |
34,087,000
| | |
38,833,000
| |
|
Deferred tax asset, net, non-current
| |
-
| |
438,000
| |
|
Deferred financing costs, net
| |
1,450,000
| | |
2,487,000
| |
|
Other assets, net
| |
894,000
|
| |
958,000
|
|
|
Total assets
| |
$
|
676,362,000
|
| |
719,778,000
|
|
| | | |
|
|
Liabilities and Stockholders’ Equity
| | | | |
|
Current liabilities:
| | | | |
|
Accounts payable
| |
$
|
12,149,000
| | |
20,967,000
| |
|
Accrued expenses and other current liabilities
| |
30,641,000
| | |
40,870,000
| |
|
Dividends payable
| |
4,544,000
| | |
4,773,000
| |
|
Customer advances and deposits
| |
13,432,000
| | |
14,516,000
| |
|
Interest payable
| |
3,029,000
|
| |
1,529,000
|
|
|
Total current liabilities
| |
63,795,000
| | |
82,655,000
| |
| | | |
|
|
Convertible senior notes
| |
200,000,000
| | |
200,000,000
| |
|
Other liabilities
| |
3,883,000
| | |
5,098,000
| |
|
Income taxes payable
| |
3,266,000
| | |
2,624,000
| |
|
Deferred tax liability, net
| |
1,184,000
|
| |
-
|
|
Total liabilities
| |
272,128,000
| | |
290,377,000
| |
|
Commitments and contingencies
| | | | |
|
Stockholders’ equity:
| | | | |
|
Preferred stock, par value $.10 per share; shares authorized and
unissued 2,000,000
| |
-
| |
-
|
|
Common stock, par value $.10 per share; authorized 100,000,000
shares; issued 28,996,237 shares and 28,931,679 shares at April 30,
2013 and July 31, 2012, respectively
| |
2,900,000
| | |
2,893,000
| |
|
Additional paid-in capital
| |
361,970,000
| | |
361,458,000
| |
|
Retained earnings
| |
402,773,000
|
| |
404,227,000
|
|
| |
767,643,000
| | |
768,578,000
| |
|
Less:
| | | | |
|
Treasury stock, at cost (12,504,352 shares and 11,564,059 shares at
April 30, 2013 and July 31, 2012, respectively)
| |
(363,409,000
|
)
| |
(339,177,000
|
)
|
|
Total stockholders’ equity
| |
404,234,000
|
| |
429,401,000
|
|
|
Total liabilities and stockholders’ equity
| |
$
|
676,362,000
|
| |
719,778,000
|
|
| | | | | | |
|
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(Unaudited)
|
|
| | |
| |
| |
Three Months Ended April 30,
|
| |
Nine Months Ended April 30,
|
| |
2013
|
|
2012
| |
2013
|
|
2012
|
| | | | | | | |
|
| Reconciliation of GAAP Net Income to Adjusted EBITDA(1): | | | | | | | | |
GAAP net income
| |
$
|
2,852,000
| | |
6,066,000
| | |
12,652,000
| | |
24,488,000
|
Income taxes
| |
817,000
| | |
2,678,000
| | |
6,776,000
| | |
7,270,000
|
Net interest expense and other
| |
1,722,000
| | |
1,822,000
| | |
5,272,000
| | |
5,221,000
|
Amortization of stock-based compensation
| |
694,000
| | |
809,000
| | |
2,245,000
| | |
2,718,000
|
Depreciation and other amortization
| |
3,522,000
| | |
4,064,000
| | |
10,705,000
| | |
12,256,000
|
Restructuring charges related to the wind-down of microsatellite
product line
| |
-
| |
-
| |
569,000
| | |
-
|
Costs related to withdrawn fiscal 2011 contested proxy solicitation
| |
-
| |
-
| |
-
| |
2,638,000
|
Adjusted EBITDA
| |
$
|
9,607,000
|
| |
15,439,000
|
| |
38,219,000
|
| |
54,591,000
|
|
(1)
|
|
Represents earnings before interest, income taxes, depreciation and
amortization of intangibles and stock-based compensation,
restructuring charges related to the wind-down of the microsatellite
product line of the Company’s mobile data communications segment and
costs related to a withdrawn fiscal 2011 contested proxy
solicitation. Adjusted EBITDA is a non-GAAP operating metric used by
management in assessing the Company’s operating results. The
Company’s definition of Adjusted EBITDA may differ from the
definition of EBITDA used by other companies and may not be
comparable to similarly titled measures used by other companies.
Adjusted EBITDA is also a measure frequently requested by the
Company’s investors and analysts. The Company believes that
investors and analysts may use Adjusted EBITDA, along with other
information contained in its SEC filings, in assessing its ability
to generate cash flow and service debt.
|
ECMTL
Contacts:
Media:
Michael D. Porcelain, Senior Vice President and Chief
Financial Officer
631-962-7000
Info@comtechtel.com
Source: Comtech Telecommunications Corp.
© 2026 Canjex Publishing Ltd. All rights reserved.