Comtech Q1 2023 Earnings Report
Key Takeaways
Comtech reported a sequential increase in consolidated net sales for the fourth consecutive quarter, driven by higher revenue in the Satellite and Space Communications segment. Bookings increased, leading to growth in funded backlog. Adjusted EBITDA also increased, reflecting the rise in net sales.
Consolidated net sales increased 12.2% year-over-year to $131.1 million, marking the fourth consecutive quarter of growth.
Consolidated bookings reached $181.2 million, contributing to a funded backlog of $668.2 million, up 8.1% from the previous quarter.
Adjusted EBITDA was $10.7 million, or 8.2% of consolidated net sales, compared to $5.5 million in the same quarter last year.
Satellite and Space Communications segment revenues increased 25.2% year-over-year, driven by foreign military sales and upgrades to Ukrainian systems.
Comtech
Comtech
Forward Guidance
Comtech expects net sales to grow between 1% and 3% sequentially for Q2 fiscal 2023, and Adjusted EBITDA margin to be approximately 8.0%.
Positive Outlook
- Net sales are expected to grow between 1% and 3% sequentially.
- Adjusted EBITDA margin is expected to be approximately 8.0%.
Challenges Ahead
- Uncertainties continue to pervade the macro operating environment.
- Guidance excludes stock-based compensation.
- Guidance excludes adjustments to the provision for income taxes.
- Guidance excludes amortization of intangibles.
- Guidance excludes interest expense.