Comtech Telecommunications Corp. Announces Results for the Second Quarter of Fiscal 2008
MELVILLE, N.Y., Mar 05, 2008 (BUSINESS WIRE) -- Comtech Telecommunications Corp. (NASDAQ: CMTL) today reported its operating results for the three months ended January 31, 2008. Net sales for the second quarter of fiscal 2008 were $152.0 million compared to $111.4 million in the second quarter of fiscal 2007, reflecting significant growth in the mobile data communications and RF microwave amplifiers segments, partially offset by lower net sales in the telecommunications transmission segment.
GAAP net income was $25.5 million, or $0.91 per diluted share, for the three months ended January 31, 2008 compared to $18.2 million, or $0.68 per diluted share, for the three months ended January 31, 2007. Non-GAAP net income, which excludes the amortization of stock-based compensation expense, was $27.1 million, or $0.96 per diluted share, for the three months ended January 31, 2008 as compared to Non-GAAP net income of $19.1 million, or $0.70 per diluted share, for the three months ended January 31, 2007.
Net sales for the six months ended January 31, 2008 were $267.1 million compared to $208.5 million for the six months ended January 31, 2007. GAAP net income was $40.2 million, or $1.45 per diluted share, for the six months ended January 31, 2008 compared to $29.0 million, or $1.09 per diluted share, for the six months ended January 31, 2007. Non-GAAP net income, which excludes the amortization of stock-based compensation expense, was $43.6 million, or $1.56 per diluted share, for the six months ended January 31, 2008 as compared to Non-GAAP net income of $31.3 million, or $1.15 per diluted share, for the six months ended January 31, 2007.
In commenting on the Company's performance during the second quarter of fiscal 2008, Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "I am pleased to announce the strongest quarterly performance in our Company's history. We achieved record quarterly revenues and earnings per share."
Mr. Kornberg added, "Based on our outstanding results for the first half of the year, we are confident that fiscal 2008 will be another record year."
Selected Second Quarter Fiscal 2008 Financial Metrics and Other Items
-- Bookings for the three and six months ended January 31, 2008 were $122.3 million and $357.3 million, respectively, compared to $104.5 million and $226.0 million for the three and six months ended January 31, 2007, respectively. Backlog as of January 31, 2008 was $219.2 million compared to $129.0 million as of July 31, 2007.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA) were $40.7 million and $64.6 million for the three and six months ended January 31, 2008, respectively, versus $27.3 million and $46.5 million for the three and six months ended January 31, 2007, respectively.
-- Cash used in operating activities for the first six months of fiscal 2008 was $1.0 million, primarily reflecting an increase in working capital requirements associated with the significant increase in sales activity across the Company. The increase in working capital requirements (primarily for accounts receivable and inventory) was driven by the timing of shipments and the related collection of cash from customers, as well as the necessary investments in inventory in support of current backlog that is expected to be recognized as revenue during the second half of fiscal 2008.
The Company has scheduled an investor conference call for 8:30 AM (ET) on Thursday, March 6, 2008. Investors and the public are invited to access a live webcast of the conference call from the news 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) 530-9027. In addition, an updated investor presentation, including earnings guidance, will be available on our web site shortly after the conference call.
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 or ineffective. 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 leader in the market segments that it serves.
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, 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 timing of receipt of, and the Company's performance on, new 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 subpoena from the U.S. Immigration and Customs Enforcement branch of the Department of Homeland Security, and other factors described in the Company's filings with the Securities and Exchange Commission.
(1) Non-GAAP net income is used by management in assessing the Company's operating results. The Company believes that investors and analysts may use non-GAAP measures that exclude the amortization of stock-based compensation, along with other information contained in its SEC filings, in assessing the Company's operating results.
(2) Represents earnings before interest, income taxes, depreciation and amortization of intangibles and stock-based compensation. EBITDA is a non-GAAP operating metric used by management in assessing the Company's operating results and ability to meet debt service requirements. 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.
SOURCE: Comtech Telecommunications Corp.
Comtech Telecommunications Corp. Robert G. Rouse, Executive Vice President and Chief Operating Officer, 631-962-7000