Comtech Q3 2021 Earnings Report
Key Takeaways
Comtech announced its Q3 2021 results with consolidated net sales of $139.4 million. The company achieved a book-to-bill ratio of 0.83 with bookings of $115.9 million. GAAP operating income was $2.4 million, GAAP net income was $0.8 million, and GAAP EPS was $0.03.
Consolidated net sales of $139.4 million and Adjusted EBITDA of $17.7 million (or 12.7% of consolidated net sales).
Bookings of $115.9 million, with a book-to-bill ratio of 0.83.
GAAP operating income of $2.4 million, GAAP net income of $0.8 million and GAAP net income per diluted share of $0.03.
Generated GAAP operating cash flows of $6.8 million and had $39.2 million of cash and cash equivalents.
Comtech
Comtech
Forward Guidance
Comtech expects fiscal 2021 consolidated net sales to be in a range of $580.0 million to $590.0 million and continues to target Adjusted EBITDA in a range of $74.0 million to $76.0 million for fiscal 2021.
Positive Outlook
- Strong demand for Comtech's public safety technology solutions.
- Delivering 5G virtual mobile location-based technology solutions for two U.S. tier-one mobile network operators.
- Contract performance in support of a critical U.S. Air Force and U.S. Army Anti-jam Modem (“A3M”) program under the U.S. Space Force’s Space and Missile Systems Center (“SMC”) agency.
- Deliveries of SLM-5650B satellite modems and firmware related to a previously awarded contract from the U.S. Naval Information Warfare Systems Command.
- Multi-year agreement enabling a customer to potentially order hundreds of millions of dollars of its next-generation satellite earth station technology.
Challenges Ahead
- Change in anticipated revenues in its Government Solutions segment due to the U.S. government's April 2021 announcement to fully withdraw troops from Afghanistan.
- Fiscal 2021 is anticipated to reflect significantly lower sales of field support services.
- Evaluating the new market of next-generation satellite technology in relation to its long-term business strategies, and it may incur additional costs over the next twelve months.
- Ongoing effort to improve efficiencies and streamline operations in its Government Solutions segment.
- The pandemic's continuing impact on global business conditions.