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Oct 31, 2023
Comtech Q1 2024 Earnings Report
Comtech's Q1 2024 results were driven by revenue growth and the 'One Comtech' transformation.
Key Takeaways
Comtech reported a strong start to fiscal year 2024, with net sales increasing by 15.9% year-over-year to $151.9 million and bookings reaching $185.6 million, resulting in a book-to-bill ratio of 1.22x. The company's 'One Comtech' transformation is taking root, leading to sequential revenue growth and improved operating income.
Net sales for Q1 2024 increased by 15.9% year-over-year to $151.9 million.
Bookings for Q1 2024 reached $185.6 million, with a book-to-bill ratio of 1.22x.
The 'One Comtech' transformation is driving sequential revenue growth and improved operating income.
The company's revenue visibility as of October 31, 2023, approximates $1.7 billion.
Comtech
Comtech
Comtech Revenue by Segment
Revenue by Segment
Satellite & Space Comm Revenue
CapyFin.comTerrestrial & Wireless Revenue
CapyFin.com Forward Guidance
For the second quarter of fiscal 2024, Comtech anticipates sequential net sales growth of 1% to 3% and an Adjusted EBITDA margin in the low double-digit percentage range (11% – 13%). Continued improvement in operating income on a sequential basis is also expected.
Positive Outlook
- Sequential net sales growth of 1% to 3% is expected.
- Adjusted EBITDA margin is projected to remain in the 11% - 13% range.
- Continued improvement in operating income on a sequential basis is anticipated.
- One Comtech operating model will drive long-term growth and profitability.
- Lean initiatives are expected to contribute to margin improvement.
Challenges Ahead
- Ongoing uncertainties in the economic and geopolitical environment pose challenges.
- The timing and execution of the credit facility refinancing introduce complexity.
- Near-term visibility into sales remains a challenge due to the volatile business environment.
- The product and service mix may vary from quarter to quarter.
- Targets are subject to the timing and outcome of efforts to refinance the existing Credit Facility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income