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Jul 31, 2024
Comtech Q4 2024 Earnings Report
Comtech's Q4 2024 performance was impacted by factors affecting bottom line, despite strong net bookings and stable net sales.
Key Takeaways
Comtech's Q4 fiscal 2024 saw net sales of $126.2 million and a significant operating loss of $81.5 million, which included a $64.5 million non-cash impairment charge. Despite these challenges, the company achieved record funded backlog of approximately $800 million and net bookings of $271.5 million.
Comtech is executing a transformative strategy to become a pure-play satellite and space communications company.
Consolidated net bookings rose 167% sequentially to $271.5 million, with a book-to-bill ratio of 2.15x.
Consolidated net sales saw a modest sequential decline to $126.2 million.
Operating loss was $81.5 million, including a $64.5 million non-cash impairment charge.
Revenue by Segment
Forward Guidance
Comtech is focused on evaluating investments in long-term customer programs, accelerating the cash conversion cycle, and winning business by solving customer challenges.
Positive Outlook
- Evaluating investments in long-term customer programs.
- Continuing to accelerate our cash conversion cycle, and in particular, monetizing our unbilled receivables.
- Continue to win business by doing what we have always done best: solving our customers’ challenging problems.
- Demand for our technologies and solutions remains strong.
- Comtech comprises two very good businesses, with market-leading people and products, operating in growing markets and serving customers who clearly value our solutions.
Challenges Ahead
- Financial performance was below our expectations.
- Margins, and thus profitability, came under significant pressure.
- Consolidated gross margins were sequentially down 890 basis points to 21.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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