Comtech Q3 2020 Earnings Report
Key Takeaways
Comtech Telecommunications Corp. reported net sales of $135.1 million for the third quarter of fiscal 2020. The company experienced an operating loss of $3.1 million and a net loss of $4.0 million, or $0.16 per diluted share. However, excluding certain expenses, non-GAAP net income was $1.2 million, or $0.05 per diluted share. Despite the challenges, Comtech believes the worst impact of the pandemic is behind it and remains well-positioned for growth.
Net sales for the third quarter of fiscal 2020 were $135.1 million.
Bookings during the third quarter of fiscal 2020 were $137.5 million, with a company-wide book-to-bill ratio of 1.02.
On a GAAP basis, the Company reported an operating loss of $3.1 million, a net loss of $4.0 million and a net loss per diluted share of $0.16.
Comtech generated GAAP operating cash flows of $7.7 million during the quarter and had $50.6 million of cash and cash equivalents at April 30, 2020.
Comtech
Comtech
Forward Guidance
Comtech expects fiscal 2020 fourth quarter consolidated net sales, net income and Adjusted EBITDA to be somewhat better than the results it achieved during the third fiscal quarter. Comtech expects to incur acquisition plan expenses of approximately $3.5 million during the fourth quarter of fiscal 2020.
Challenges Ahead
- Fourth quarter results will be negatively impacted if orders and/or deliveries are delayed.
- Fourth quarter results will be negatively impacted if business conditions further deteriorate.
- Fourth quarter results will be negatively impacted if Comtech's current or prospective customers materially postpone purchases of its products and services.
- Fourth quarter results will be negatively impacted if Comtech's current or prospective customers materially reduce purchases of its products and services.
- Fourth quarter results will be negatively impacted if Comtech's current or prospective customers materially forgo purchases of its products and services.