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Apr 30, 2023
Comtech Q3 2023 Earnings Report
Comtech's net sales grew for the sixth consecutive quarter, improved adjusted EBITDA to $12.5 million, and announced three new EVOKE technology partnerships.
Key Takeaways
Comtech delivered improved performance in Q3 2023, with net sales growing for the sixth consecutive quarter. The company's adjusted EBITDA improved to $12.5 million, and they announced three new EVOKE technology partnerships. They expect Q4 fiscal 2023 results to improve.
Comtech grew net sales for the sixth consecutive quarter.
Cash flow provided by operating activities for the quarter was $16.6 million.
Adjusted EBITDA improved to $12.5 million, or a 9.2% margin.
Three new EVOKE technology partnerships were announced with Aarna Networks, Descartes Labs and WishKnish.
Forward Guidance
For Q4 fiscal 2023, Comtech expects Net Sales to grow between approximately 2.0% and 4.0% on a sequential basis and Adjusted EBITDA Margins to be in the range of 9.5% to 10.5%.
Positive Outlook
- Net Sales to grow between approximately 2.0% and 4.0% on a sequential basis
- Adjusted EBITDA Margins to be in the range of 9.5% to 10.5%
- Remain intensely focused on managing operations and cost structure
- Believe that we are on the right course to deliver future margin expansion
- Believe we have good visibility into forward sales
Challenges Ahead
- Sales cycles are less predictable
- Procurement processes are complex
- End markets introduce performance variability
- Global economic and political conditions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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