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Oct 31, 2020
Comtech Q1 2021 Earnings Report
Reported operating results for the first fiscal quarter ended October 31, 2020 and updated financial targets for fiscal 2021.
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.