Comtech Announces Fourth-Quarter, Full-Year Financials
Wednesday, September 30, 2020 | Comments

Comtech Telecommunications reported its operating results for the fourth quarter and fiscal year ended July 31.

Consolidated net sales for the fourth quarter of fiscal 2020 were $149.7 million, which represents a sequential increase of 10.8% as compared to the $135.1 million the company collected during its third quarter, which ended April 30.

The company had bookings of $159.7 million and achieved a book-to-bill ratio of 1.07 during the quarter. The company’s pipeline remains strong and includes a number of large opportunities, the company said.

On a generally accepted accounting principles (GAAP) basis, Comtech reported operating income of $2.8 million, net incomes of $1.1 million and net income per diluted share of 4 cents during the quarter.

The operating income for the quarter was impacted by $6.4 million of acquisition plan expenses.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was $23.5 million of 15.7% of consolidated net sales with strong GAAP operating cash flows of $13.8 million.

For the entire fiscal year, consolidated net sales were $616.7 million with full-year bookings of $584.4 million, translating into a book-to-bill ratio of 0.95. Backlog at year end was $620.9 million. When adding backlog and total unfunded value of multiyear contracts that Comtech has received and for which it expects future orders, revenue visibility approximates $1 billion. A number of large potential contracts awards are pending.

On a GAAP basis, the company reported $15.2 million, net income of $7 million and earnings per share (EPS) of 28 cents. Operating income was impacted by $20.8 million of acquisition plan expenses and $400,000 of estimated contract settlement costs.

Adjusted EBITDA for the entire year was $77.8 million, or 12.6% of consolidated net sales with strong GAPP operating cash flows of $52.8 million.

As of July 31, Comtech had $47.9 million of cash and cash equivalents and lowered its total debt outstanding in fiscal 2020 by $16.2 million to $149.6 million.

“Our fourth quarter’s results provided a strong finish to what was a challenging fiscal year as a result of the COVID-19 pandemic,” said Comtech Chairman and CEO Fred Kornberg. “Our prudent financial management in these turbulent times has enabled us to generate strong operating cash flows and given us the flexibility to continue to invest in our business. As we look to fiscal 2021, we will continue to drive long-term growth and shareholder value creation through our steadfast commitment to delivering critical technology solutions to our customers.”

Excluding any pending acquisitions, the company expects that 2021 consolidated net sales and adjusted EBITDA will be slightly higher than the amounts achieved in fiscal 2020.

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