Jul 31, 2021

Comtech Q4 2021 Earnings Report

Reported strong results for the fourth quarter and fiscal year 2021.

Key Takeaways

Comtech Telecommunications Corp. reported strong Q4 results with consolidated net sales of $145.8 million, GAAP net income of $7.4 million, and adjusted EBITDA of $26.4 million. New bookings for the quarter were $168.2 million, resulting in a book-to-bill ratio of 1.15. The company's backlog provides revenue visibility to over $1.1 billion.

Consolidated net sales for the fourth quarter of fiscal 2021 were $145.8 million.

New bookings for the fourth quarter of fiscal 2021 were $168.2 million, with a book-to-bill ratio of 1.15.

GAAP operating income in the fourth quarter of fiscal 2021 was $9.7 million, and GAAP EPS was $0.28.

Comtech generated GAAP operating cash flows of $15.9 million during the fourth quarter.

Total Revenue
$146M
Previous year: $150M
-2.6%
EPS
$0.23
Previous year: $0.21
+9.5%
Book-to-Bill Ratio
1.15
Previous year: 1.07
+7.5%
Gross Profit
$55.1M
Previous year: $49.7M
+10.9%
Cash and Equivalents
$30.9M
Previous year: $47.9M
-35.5%
Free Cash Flow
$8.14M
Previous year: $11M
-25.6%
Total Assets
$993M
Previous year: $930M
+6.8%

Comtech

Comtech

Forward Guidance

Comtech is targeting fiscal 2022 net sales within a range of $580.0 million to $600.0 million and Adjusted EBITDA between $70.0 million and $76.0 million.

Positive Outlook

  • Strength of the Company’s backlog.
  • Strong sales pipeline.
  • Increased demand for its NG-911 solutions.
  • Increased demand for satellite earth station products.
  • Full twelve months of sales of its new revolutionary TDMA satellite network platform.

Challenges Ahead

  • Lingering impacts of COVID-19.
  • Timing considerations associated with tightening global supply chain constraints.
  • Start-up costs associated with the opening of two new high-volume technology manufacturing facilities.
  • Impact of the recently completed withdrawal of U.S. troops from Afghanistan.
  • Other U.S. government program changes.