Comtech Q1 2021 Earnings Report
Key Takeaways
Comtech Telecommunications Corp. reported consolidated net sales of $135.2 million and Adjusted EBITDA of $14.3 million for the first quarter of fiscal 2021, exceeding expectations. The company achieved a book-to-bill ratio of 0.91 with bookings of $123.2 million and faced significant acquisition plan expenses, including costs related to the Gilat merger termination.
Consolidated net sales reached $135.2 million, and Adjusted EBITDA was $14.3 million, surpassing initial expectations.
The company achieved a book-to-bill ratio of 0.91 with bookings totaling $123.2 million.
Backlog as of October 31, 2020, was $605.5 million, with revenue visibility approximating $1.0 billion when including unfunded multi-year contracts.
A GAAP operating loss of $85.7 million and a GAAP net loss of $85.8 million, or $3.39 per diluted share, were reported due to acquisition plan expenses.
Comtech
Comtech
Forward Guidance
Comtech expects fiscal 2021 consolidated net sales to be in the range of $610.0 million to $630.0 million and Adjusted EBITDA to be in the range of $74.0 million to $76.0 million, excluding the impact of the pending UHP acquisition.
Positive Outlook
- Strong demand for public safety technology solutions.
- Providing 5G virtual mobile location-based technology solutions for two U.S. tier-one mobile network operators.
- Deliveries to support a critical U.S. Air Force and U.S. Army Anti-jam Modem (“A3M”) program.
- Similar level of annual sales in its satellite earth station product line as compared to fiscal 2020.
- Awarded a statewide contract valued at up to $175.1 million to design, deploy, and operate NG-911 services for the Commonwealth of Pennsylvania.
Challenges Ahead
- The ultimate impact of the COVID-19 pandemic could change financial targets.
- Acquisition plan expenses remain largely unpredictable.
- The pandemic's continued impact on global business conditions.
- Company is not providing any GAAP operating income, GAAP net income or GAAP EPS guidance.
- Reconciliations to the Non-GAAP forward looking metrics are not available without unreasonable effort and such unavailable reconciling items could significantly impact the Company's financial results.