Comtech Telecommunications Corp.’s fiscal second-quarter earnings fell 64% as the seller of radio-frequency amplifiers used in aircraft communications continued to see its revenue drop.
However, the company raised its full-year earnings guidance to $1.34 to $1.44 a share, from its prior view of $1.25 to $1.37 a share. It also lifted the low end of its full-year revenue view, now projecting $420 million to $430 million. Chief Executive Fred Kornberg said the company is currently negotiating a new BFT-1 sustainment contract with the U.S. Army and said the company is optimistic at least one new contract will be awarded before March 31.
Click here to find out more!The company has reported double-digit revenue declines over the past year, hurt by sluggishness from U.S. and international governments and weakness in the Middle East and Northern Africa due to political turmoil in those regions. Late last year, small-cap investment fund MMI Investments had criticized Comtech’s strategy to spur growth through acquisitions. In November, MMI withdrew its nominations for two candidates to Comtech’s board.
For the quarter ended Jan. 31, Comtech reported a profit of $5.8 million, or 27 cents a share, down from $16.1 million, or 52 cents a share, a year earlier. The company had fewer shares outstanding in the most recent period. Revenue slumped 39% to $99.1 million. Analysts polled by Thomson Reuters expected a profit of 22 cents a share on revenue of $94 million. Gross margin widened to 41.8% from 37.4%. Total bookings rose 3.6% from the year-earlier period to $98.4 million. Backlog slid 0.6% sequentially to $126.3 million. Shares closed at $31.97 Thursday and were unchanged after hours. The stock is up 12% so far this year.
