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Apr 30, 2021
Comtech Q3 2021 Earnings Report
Comtech reported solid operating performance and secured important contract awards.
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.