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Jul 31, 2023
Comtech Q4 2023 Earnings Report
Comtech's Q4 2023 results reflected sequential revenue growth and improved profitability, driven by strategic wins and operational efficiencies.
Key Takeaways
Comtech reported a strong Q4 fiscal year 2023 with a 17.2% increase in consolidated net sales compared to Q4 2022, reaching $148.8 million. The company achieved GAAP operating income for the first time since Q4 fiscal 2021, and Adjusted EBITDA improved to $18.9 million, or 12.7% of consolidated net sales. Bookings for the quarter totaled $142.6 million, and backlog stood at $662.2 million.
Comtech's consolidated net sales increased by 17.2% year-over-year, reaching $148.8 million.
The company achieved its first quarter of GAAP operating income since Q4 fiscal 2021, reporting $1.1 million.
Adjusted EBITDA was $18.9 million, representing 12.7% of consolidated net sales, compared to $12.7 million in Q4 fiscal 2022.
Key bookings during Q4 fiscal 2023 included $30.0 million from the U.S. Army for next-generation troposcatter terminals and $21.0 million from the State of Ohio for next-generation 911 solutions.
Comtech
Comtech
Comtech Revenue by Segment
Revenue by Segment
Satellite & Space Comm Revenue
CapyFin.comTerrestrial & Wireless Revenue
CapyFin.com Forward Guidance
For the first quarter of fiscal 2024, Comtech is targeting consolidated net sales to sequentially increase approximately 1.0% to 4.0% and for its consolidated Adjusted EBITDA margin to range between 11.0% and 13.0%.
Positive Outlook
- Targeting consolidated net sales to sequentially increase approximately 1.0% to 4.0%
- Expecting consolidated Adjusted EBITDA margin to range between 11.0% and 13.0%.
- Assumptions include the timing of and performance on orders from the U.S. Army for VSAT equipment.
- Assumptions include the timing of and our performance on our recently awarded $544.0 million GFSR contract.
- Expect a near-term close.
Challenges Ahead
- Macroeconomic environment continues to be challenging and largely unpredictable.
- Factors such as inflation, rising interest rates, repercussions of military conflicts and a potential global recession.
- Order and production delays, disruptions in component availability.
- Increased pricing for labor and parts, lower levels of factory utilization and higher logistics and operational costs also continue to impact our business.
- The $544.0 million GFSR contract, which has been protested by the prior incumbent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income