Comtech Q3 2024 Earnings Report
Key Takeaways
Comtech reported a decrease in consolidated net sales but an improved operating loss. The company secured a new credit facility and highlighted key contract wins, particularly in the Terrestrial & Wireless Networks segment. Management is focused on improving cash conversion and expects positive impacts from the recent refinancing.
Consolidated net sales decreased by 6% year-over-year to $128.1 million.
Operating loss improved to ($3.5) million compared to ($5.3) million in Q3 2023.
The company secured a new credit facility comprising a $60 million revolver and a $162 million term loan.
Massachusetts awarded Comtech a five-year contract for NG911 public safety system operations and maintenance, valued in excess of $140 million.
Comtech
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Comtech Revenue by Segment
Forward Guidance
Comtech expects net sales and Adjusted EBITDA for Q4 fiscal 2024 to be similar to Q3 of fiscal 2024, driven by leadership additions, operational transformation, best-in-class technology, and growing end markets.
Positive Outlook
- Excellent additions to the leadership team.
- Financial performance will benefit from our operational transformation.
- People, technology, and equipment are best in class, evidenced by continuing success in winning new business.
- Existing end markets are growing.
- New markets are coming into view.
Challenges Ahead
- Elevated interest rates.
- Inflation.
- Continuing resolutions associated with the U.S. Federal budget may cause order and production delays.
- Disruptions in component availability.
- Increased pricing both for labor and parts, and higher logistics and operational costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income