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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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