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Comtech Telecommunications Corp. Announces First Quarter Results For Fiscal 2000

November 30, 1999 at 12:00 AM EST
Comtech Telecommunications Corp. Announces First Quarter Results For Fiscal 2000 Melville, New York --- November 30, 1999 --- COMTECH TELECOMMUNICATIONS CORP. (NASDAQ: CMTL) today reported sales of $11,747,000, operating earnings from continuing operations of $865,000 and net income of $535,000 or $.11 per share for its first fiscal quarter, which ended October 31, 1999. For the same quarter of last year, the Company had sales of $8,735,000, operating earnings from continuing operations of $609,000, and net income of $394,000 or $.09 per share.

In last year's first quarter, net operating loss carryforwards offset taxable income so that there was no federal income tax expense.

Applying an effective tax rate of 35% to fiscal 1999 first quarter results thereby making those results comparable to the first quarter of fiscal 2000, would result in, on a pro forma basis, net income of $285,000 or $0.07 per share.

Backlog at October 31, 1999 was $36,178,000 as compared to $10,651,000 a year before and $38,637,000 at July 31, 1999.

Revenues were 34% higher in the first three months of fiscal 2000 than a year earlier. Operating earnings increased by 42%, and net income increased by 36%. Net income increased 88% on a pro-forma fully taxed comparison basis.

"The sales and earnings gains were primarily driven by our Comtech Systems, and Comtech Communications operating units" said Fred Kornberg, President and Chief Executive Officer. "The gains were partly offset by results of our Comtech PST operating unit. Net earnings were also affected by expenses associated with the Company's Comtech Mobile Datacom operating unit and such expenses, associated with the start-up, are expected to continue to impact results for at least the balance of this year." Comtech Mobile Datacom bookings this quarter were approximately $1 million of which approximately $300,000 were for orders under its contract with the U.S. Army to implement the Army's Movement Tracking System. Comtech does not expect to receive any significant additional orders under this contract until the third quarter of the current fiscal year at the earliest, he said.

"I am pleased that fiscal year 2000 started well and that results for the first quarter ended October 31, 1999 were on target with our expectations", Mr. Kornberg said. "Increased sales and income reflect the benefits of Comtech's ongoing transition to a product-oriented business and new product introductions. On balance, we are continuing to make progress in the execution of our business plan."

Comtech, through its operating units, is a broad based supplier of mobile data communications transceivers and services, state-of-the-art solid state high power RF microwave amplifiers and high technology satellite and over-the-horizon telecommunication transmission products and systems for commercial and government applications.

Visit our Website: http://www.comtechtel.com

Certain information contained herein includes information that is forward-looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involved in the Company's business. These forward-looking statements are qualified in their entirety by the cautionary statements contained in the Company's Securities and Exchange Commission filings.