MELVILLE, N.Y., June 7, 2011 (GLOBE NEWSWIRE) -- Comtech Telecommunications Corp. (Nasdaq:CMTL) today reported its operating results for the three and nine months ended April 30, 2011.
Net sales for the third quarter of fiscal 2011 were $131.1 million compared to $216.3 million for the third quarter of fiscal 2010. The period-over-period decrease in net sales is attributable to lower net sales in both the Company's mobile data communications and RF microwave amplifiers segments offset, in part, by higher net sales in its telecommunications transmission segment.
GAAP net income was $14.3 million, or $0.47 per diluted share, for the third quarter of fiscal 2011 compared to $21.8 million, or $0.67 per diluted share, for the third quarter of fiscal 2010.
Net sales for the nine months ended April 30, 2011 were $472.1 million compared to $521.3 million for the nine months ended April 30, 2010. The period-over-period decrease in net sales is attributable to lower net sales in both the Company's mobile data communications and RF microwave amplifiers segments offset, in part, by higher net sales in its telecommunications transmission segment.
GAAP net income was $56.0 million, or $1.79 per diluted share, for the nine months ended April 30, 2011 compared to $47.2 million, or $1.48 per diluted share, for the nine months ended April 30, 2010.
Comtech also announced today that its Board of Directors declared a quarterly cash dividend of $0.25 per share payable on August 19, 2011 to shareholders of record at the close of business on July 21, 2011. The dividend is the Company's fourth quarterly dividend. While future dividends will be subject to Board approval, the Board of Directors is currently targeting annual dividend payments aggregating $1.00 per share.
In commenting on the Company's performance, Fred Kornberg, President and Chief Executive Officer, stated, "Despite lower than expected sales for the third quarter, we once again posted solid quarterly results. Sales for the third quarter did not include originally anticipated shipments related to certain MTS hardware orders. These hardware orders are now expected to ship during the fourth quarter of fiscal 2011."
Mr. Kornberg added, "We continue to expect future annual sales and related operating income from the U.S. Army to significantly decline from current levels. Nevertheless, I remain optimistic about our future direction. With deployable cash of approximately $590 million, we continue to focus our acquisition efforts on a number of opportunities that we believe would complement our existing businesses, diversify our customer base and align with our long-term strategy."
Selected Fiscal 2011 Third Quarter Financial Metrics and Other Items
- At April 30, 2011, the Company had $588.9 million of cash and cash equivalents. Net cash provided by operating activities was $68.9 million for the nine months ended April 30, 2011 compared to $82.5 million for the nine months ended April 30, 2010.
- During the nine months ended April 30, 2011, the Company repurchased 2,365,870 shares of its common stock under its $100.0 million stock repurchase plan in open-market transactions for an aggregate cost of $68.1 million (including transaction costs) with an average price per share of $28.77.
- Backlog as of April 30, 2011 was $196.2 million. Bookings for the three and nine months ended April 30, 2011 were $127.7 million and $330.2 million, respectively, compared to $180.6 million and $383.5 million for the three and nine months ended April 30, 2010, respectively.
- Earnings before interest, taxes, depreciation and amortization, ("Adjusted EBITDA"), was $28.9 million and $107.7 million for the three and nine months ended April 30, 2011, respectively, versus $43.1 million and $98.2 million for the three and nine months ended April 30, 2010, respectively.
- The Company's effective tax rate of 29.9% for the three months ended April 30, 2011 reflects net discrete tax benefits of approximately $1.0 million, which primarily relates to a reduction in expenses that were previously deemed to be non-deductible for tax purposes.
- During the three months ended April 30, 2011, the Enforcement Division of the Office of Defense Trade Controls Compliance ("DDTC") of the U.S. Department of State informed the Company that it closed its review of the Company's compliance with International Traffic in Arms Regulations ("ITAR") without assessing any fines or penalties.
Conference Call
The Company has scheduled an investor conference call for 8:30 AM (ET) on Wednesday, June 8, 2011. 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 (800) 862-9098 (domestic) or (785) 424-1051 (international) and using the conference I.D. of "Comtech." A replay of the conference call will be available for seven days by dialing (402) 220-0866. In addition, an updated investor presentation, including earnings guidance, will be available on the Company's web site shortly after the conference call.
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, mobile data communications and RF microwave amplifiers. 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 the Company's MTS and BFT contracts, including the Company's ongoing negotiations with the U.S. Army and pending audit of its 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 ("SEC").
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CONTACT: Media Contact: Michael D. Porcelain, Senior Vice President and Chief Financial Officer (631) 962-7000 Info@comtechtel.com
