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Comtech
🇺🇸 NASDAQ:CMTL
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•
Jan 31, 2022

Comtech Q2 2022 Earnings Report

Comtech's financial performance exceeded bottom-line expectations despite facing cumulative challenges.

Key Takeaways

Comtech reported consolidated net sales of $120.4 million, a GAAP net loss attributable to common stockholders of $23.5 million, and an Adjusted EBITDA of $9.8 million.

Consolidated net sales were $120.4 million, up 3.1% sequentially from Q1 2022.

GAAP net loss attributable to common stockholders was $23.5 million, and included $13.6 million of CEO leadership transition charges and $9.1 million related to our settled proxy contest.

GAAP EPS loss of $0.89 and Non-GAAP EPS loss of $0.03.

Adjusted EBITDA was $9.8 million, a 76.7% sequential increase from Q1 2022.

Total Revenue
$120M
Previous year: $161M
-25.4%
EPS
-$0.03
Previous year: $0.27
-111.1%
Book-to-Bill Ratio
0.86
Previous year: 1.34
-35.8%
Gross Profit
$45.9M
Previous year: $55.7M
-17.6%
Cash and Equivalents
$30.9M
Previous year: $30.9M
-0.1%
Free Cash Flow
$4.8M
Previous year: $8.06M
-40.5%
Total Assets
$995M
Previous year: $947M
+5.1%

Comtech

Comtech

Comtech Revenue by Segment

Comtech Revenue by Geographic Location

Forward Guidance

Comtech expects fiscal 2022 consolidated net sales to approximate $520.0 million and Adjusted EBITDA to approximate $50.0 million or 9.6% of targeted net sales.

Positive Outlook

  • Combined sales pipeline and opportunities have never been stronger.
  • Financial performance during the second half of fiscal 2022 is still expected to improve versus the first half of fiscal 2022.
  • Q3’s consolidated net sales and Adjusted EBITDA are expected to approximate $122.0 million and $10.0 million, respectively.
  • Approximately 85% and 50%, respectively, of our Q3 and Q4 targeted revenues in our backlog.
  • The fundamental demand drivers for our business have not changed.

Challenges Ahead

  • The Russia/Ukraine military conflict and geopolitical uncertainty in Europe have created a new set of pressures.
  • Anticipated funding for other expected orders, including for our satellite and space communications products, has been shifted to other programs and/or temporarily delayed as a result of a change in defense spending priorities.
  • The aggregate amount of the aforementioned items approximated $35.0 million and we are no longer including these opportunities in our updated fiscal 2022 consolidated net sales and Adjusted EBITDA targets.
  • Global supply chain disruptions on our customers and the possibility of extended purchase decision cycles or delays in execution.
  • Global supply chain constraints and COVID-19 pandemic aftershocks will continue to pressure our component availability and pricing, and impact logistics costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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