MELVILLE, N.Y., Mar 3, 2010 (GlobeNewswire via COMTEX News Network) -- Comtech Telecommunications Corp. (Nasdaq:CMTL) today reported its operating results for the three and six months ended January 31, 2010.

Net sales for the second quarter of fiscal 2010 were $171.1 million compared to $143.9 million for the second quarter of fiscal 2009. The period-over-period increase in net sales is attributable to higher sales, as anticipated, in our mobile data communications segment, offset, in part, by lower sales in both our telecommunications transmission and RF microwave amplifiers segments.

GAAP net income was $16.3 million, or $0.51 per diluted share, for the second quarter of fiscal 2010 compared to $12.1 million, or $0.46 per diluted share, for the second quarter of fiscal 2009.

Net sales for the six months ended January 31, 2010 were $304.9 million compared to $335.8 million for the six months ended January 31, 2009. The period-over-period decrease in net sales is attributable to lower sales, as anticipated in both our telecommunications transmission and RF microwave amplifiers segments, partially offset by an increase in sales in our mobile data communications segment.

GAAP net income was $25.4 million, or $0.81 per diluted share, for the six months ended January 31, 2010 compared to $33.7 million, or $1.26 per diluted share, for the six months ended January 31, 2009.

During the second quarter of fiscal 2010, the Company's third-party supplier of new MTS ruggedized computers and certain related accessories continued to experience production and technical issues. These issues, which are ongoing, resulted in shipping and related deployment delays to the U.S. Army, which impacted the Company's second quarter results. Based on the third-party supplier's revised delivery schedule provided to Comtech yesterday, the Company expects that approximately $90.0 million to $100.0 million of orders in its backlog previously expected to ship in fiscal 2010 will now ship in fiscal 2011. Based on the Company's year to date results and the impact of the aforementioned shift of revenue, the Company now expects fiscal 2010 revenue to approximate $740.0 million to $760.0 million and its fiscal 2010 diluted earnings per share to approximate $1.85 to $1.95.

In commenting on the Company's performance, and updated revenue and EPS guidance, Fred Kornberg, President and Chief Executive Officer, stated, "Although we are disappointed that our third-party supplier continues to experience production-related issues, our second quarter results for fiscal 2010 were solid and we continue to believe that fiscal 2010 will be another year of record revenues and that our operating income will significantly increase as compared to fiscal 2009."

Mr. Kornberg added, "Our market leadership positions are firmly intact and we continue to invest for the eventual economic recovery. We see some signs that global business conditions are slowly improving and we believe that this will bode well for us in fiscal 2011. Additionally, with over $514.2 million of cash and cash equivalents, we are well-positioned to achieve our strategic goal of executing key acquisitions that will supplement our expected organic growth as well as diversify our business."

Selected Fiscal 2010 Second Quarter Financial Metrics and Other Items

  --  Backlog as of January 31, 2010 was $446.8 million compared to $549.8
      million as of July 31, 2009 and $462.1 million as of January 31, 2009.
      Bookings for the three and six months ended January 31, 2010 were $82.3
      million and $202.9 million, respectively, compared to $386.9 million and
      $545.5 million for the three and six months ended January 31, 2009,
      respectively.
  --  Earnings before interest, taxes, depreciation and amortization,
      including amortization of acquired in-process research and development
      ("EBITDA"), was $33.7 million and $55.1 million for the three and six
      months ended January 31, 2010, respectively, versus $27.1 million and
      $77.1 million for the three and six months ended January 31, 2009,
      respectively.
  --   At January 31, 2010, the Company had $514.2 million of cash and cash
      equivalents. Net cash provided by operating activities was $28.0 million
      for the six months ended January 31, 2010 compared to $24.4 million for
      the six months ended January 31, 2009.
  --   As further discussed in the Company's Form 10-Q filed earlier today, on
      August 1, 2009, although the Company's 2.0% convertible senior notes
      were no longer outstanding, it was required to retroactively adjust the
      historical reporting relating to its 2.0% convertible senior notes in
      accordance with FASB ASC 470-20, "Debt - Debt with Conversion and Other
      Options." The retroactive adjustment did not impact the Company's
      diluted earnings per share for the three and six months ended January
      31, 2009.

Conference Call

The Company has scheduled an investor conference call for 8:30 AM (ET) on Thursday, March 4, 2010. 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) 220-0871. In addition, an updated investor presentation, including earnings guidance, will be available on our 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 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 results of ongoing investigations into the Company's compliance with export regulations, risks associated with the Radyne acquisition, risks associated with the Company's legal proceedings and other matters, risks associated with the Company's recent MTS orders, risks associated with the Company's MTS and BFT contracts, 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         Six months ended
                                 January 31,                January 31,
                                 -------------------------  ------------------------

                                         2010         2009         2010         2009
                                 ------------  -----------  -----------  -----------
                                               (as                       (as
                                               adjusted)                 adjusted)

  Net sales                      $171,132,000  143,886,000  304,948,000  335,801,000

  Cost of sales                   107,631,000   84,409,000  191,673,000  189,345,000
                                 ------------  -----------  -----------  -----------

   Gross profit                    63,501,000   59,477,000  113,275,000  146,456,000
                                 ------------  -----------  -----------  -----------

  Expenses:
   Selling, general and
    administrative                 22,909,000   25,969,000   44,628,000   54,947,000
   Research and development        11,431,000   12,522,000   22,755,000   26,647,000
   Amortization of acquired
    in-process
   research and development                --           --           --    6,200,000

   Amortization of intangibles      1,765,000    1,796,000    3,529,000    3,589,000
                                 ------------  -----------  -----------  -----------

                                   36,105,000   40,287,000   70,912,000   91,383,000
                                 ------------  -----------  -----------  -----------

  Operating income                 27,396,000   19,190,000   42,363,000   55,073,000

  Other expenses (income):
   Interest expense                 1,966,000    1,894,000    3,933,000    3,719,000

   Interest income and other        (178,000)    (626,000)    (413,000)  (1,903,000)
                                 ------------  -----------  -----------  -----------

  Income before provision for
   income taxes                    25,608,000   17,922,000   38,843,000   53,257,000

  Provision for income taxes        9,275,000    5,826,000   13,478,000   19,520,000
                                 ------------  -----------  -----------  -----------


  Net income                      $16,333,000   12,096,000   25,365,000   33,737,000
                                 ============  ===========  ===========  ===========

  Net income per share:

   Basic                                $0.58         0.49         0.90         1.37
                                 ============  ===========  ===========  ===========

   Diluted                              $0.51         0.46         0.81         1.26
                                 ============  ===========  ===========  ===========

  Weighted average number of
   common shares
  outstanding -- basic             28,250,000   24,759,000   28,236,000   24,673,000
                                 ============  ===========  ===========  ===========

  Weighted average number of
   common and
  common equivalent shares
   outstanding -- diluted          34,080,000   28,633,000   34,069,000   28,585,000
                                 ============  ===========  ===========  ===========

  COMTECH TELECOMMUNICATIONS CORP.
  AND SUBSIDIARIES
  Condensed Consolidated Balance Sheets


                                  January 31,   July 31,
                                  2010          2009
                                  ------------  -----------
  Assets                          (Unaudited)   (Audited)
                                                (as
                                                adjusted)
  Current assets:
   Cash and cash equivalents      $514,155,000  485,450,000
   Accounts receivable, net        100,828,000   79,477,000
   Inventories, net                 90,420,000   95,597,000
   Prepaid expenses and other
    current assets                   7,430,000   13,398,000

   Deferred tax asset               14,073,000   15,129,000
                                  ------------  -----------
    Total current assets           726,906,000  689,051,000

  Property, plant and equipment,
   net                              35,348,000   38,486,000
  Goodwill                         149,253,000  149,253,000
  Intangibles with finite lives,
   net                              51,856,000   55,272,000
  Deferred financing costs, net      5,368,000    6,053,000

  Other assets, net                  1,284,000      556,000
                                  ------------  -----------

    Total assets                  $970,015,000  938,671,000
                                  ============  ===========

  Liabilities and Stockholders'
   Equity
  Current liabilities:
   Accounts payable                $33,631,000   19,233,000
   Accrued expenses and other
    current liabilities             41,539,000   51,741,000
   Customer advances and
    deposits                        11,186,000   19,571,000
   Interest payable                  1,531,000    1,418,000

   Income taxes payable              6,290,000      563,000
                                  ------------  -----------
    Total current liabilities       94,177,000   92,526,000

  Convertible senior notes         200,000,000  200,000,000
  Other liabilities                  2,325,000    2,283,000
  Income taxes payable               5,363,000    4,267,000

  Deferred tax liability             8,246,000   10,466,000
                                  ------------  -----------
    Total liabilities              310,111,000  309,542,000

  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 28,482,155
    shares
   and 28,390,855 shares at
    January 31, 2010 and July
    31, 2009, respectively           2,848,000    2,839,000
   Additional paid-in capital      341,057,000  335,656,000

   Retained earnings               316,184,000  290,819,000
                                  ------------  -----------
                                   660,089,000  629,314,000
    Less:
     Treasury stock (210,937
      shares)                        (185,000)    (185,000)
                                  ------------  -----------

      Total stockholders' equity   659,904,000  629,129,000
                                  ------------  -----------
      Total liabilities and
       stockholders' equity       $970,015,000  938,671,000
                                  ============  ===========

  COMTECH TELECOMMUNICATIONS CORP.
  AND SUBSIDIARIES
  Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
  (Unaudited)


                                            Three Months Ended       Six Months Ended
                                            January 31,              January 31,
                                            -----------------------  ----------------------

                                                   2010        2009        2010        2009
                                            -----------  ----------  ----------  ----------
                                                         (as                     (as
                                                         adjusted)               adjusted)

  Reconciliation of GAAP Net Income to
   EBITDA(1):
   GAAP net income                          $16,333,000  12,096,000  25,365,000  33,737,000
   Income taxes                               9,275,000   5,826,000  13,478,000  19,520,000
   Net interest expense (income) and other    1,788,000   1,268,000   3,520,000   1,816,000
   Amortization of acquired in-process
    research and development                         --          --          --   6,200,000
   Amortization of stock-based
    compensation                              1,650,000   2,292,000   3,426,000   4,710,000

   Depreciation and other amortization        4,683,000   5,608,000   9,349,000  11,074,000
                                            -----------  ----------  ----------  ----------

   EBITDA                                   $33,729,000  27,090,000  55,138,000  77,057,000
                                            ===========  ==========  ==========  ==========

 (1)  Represents earnings before interest, income taxes, depreciation and amortization of intangibles, stock-based
  compensation and acquired in-process research and development. EBITDA is a non-GAAP operating metric used by management
  in assessing the Company's operating results. The Company's definition of 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. EBITDA
  is also a measure frequently requested by the Company's investors and analysts. The Company believes that investors and
  analysts may use EBITDA, along with other information contained in its SEC filings, in assessing its ability to
  generate cash flow and service debt.

                                                                   ECMTL

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SOURCE: Comtech Telecommunications Corp.

CONTACT:  Comtech Telecommunications Corp.
Michael D. Porcelain, Senior Vice President and
Chief Financial Officer

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