Comtech Telecommunications Corp. (NASDAQ:CMTL) Q1 2025 Earnings Call Transcript January 13, 2025 8:30 AM ET Company Participants Maria Ceriello - IR Ken Traub - Chairman, President and CEO Mike Bondi - CFO Daniel Gizinski - President, Satellite and Space Communications Jeff Robertson - President, Terrestrial and Wireless Networks Conference Call Participants Joe Gomes - Noble Capital Greg Burns - Sidoti Griffin Boss - B. Riley Securities Operator Welcome to Comtech Telecommunications Corp.'s Conference Call ...

Comtech Telecommunications (CMTL) came out with a quarterly loss of $1.27 per share versus the Zacks Consensus Estimate of a loss of $0.36. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -252.78%. A quarter ago, it was expected that this communications company would post earnings of $0.05 per share when it actually produced a loss of $0.35, delivering a surprise of -800%.Over the last four q ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION | Delaware | | 11-2139466 | | --- | --- | --- | | (State or other jurisdiction of incorporation /organization) | | (I.R.S. Employer Identification Number) | | 305 N 54th Street, | | | | Chandler, Arizona | | 85226 | | (Address of principal executive offices) | | (Zip Code) | | (480) 333-2200 | | | | (Registrant's telephone number, including area code) | | | | Securities registered pursuant to Section 12(b) of the Act: | | | | Title of each class | Trading Sym ...

Exhibit 99.1 COMTECH ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2025 Chandler, Ariz. – January 13, 2025 – Comtech Telecommunications Corp. (NASDAQ: CMTL) ("Comtech" or the "Company"), a global communications technology leader, today reported financial results for its first fiscal quarter ended October 31, 2024. In addition, Comtech separately announced today that its Board of Directors (the "Board") has named Ken Traub as President and Chief Executive Officer, effective immediately, in addi ...

SEC Charges Ken Peterman, Former Comtech CEO, with Insider Trading in Advance of Negative Earnings AnnouncementDecember 11, 2024 4:30 PM EST | Source: Newsfile SEC Press DigestWashington, D.C.--(Newsfile Corp. - December 11, 2024) - The Securities and Exchange Commission today announced insider trading charges against Ken Peterman, the former CEO, president, and Chair of the Board of Comtech Telecommunications Corp., in connection with his sale of Comtech shares on the basis of material non-pu ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Comtech Telecommunications (CMTL) reports results for the quarter ended October 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they mi ...

Comtech Telecommunications Corporation (CMTL) recently announced that it has secured a sole source contract from the U.S. Navy Information Warfare Systems Command. Per the contract valued at $50 million, CMTL will deliver SLM-5650B satellite communications modems, upgrade kits, firmware options, and technical support over the next four years. In addition, the company also recently secured a significant contract with SES Space & Defense for SLM 5650B and other advanced modems for use in sovereign connectivit ...

COMTECH COMTECH INVESTOR DAY 2023 WELCOME Fluent in the Futurer ROBERT SAMUELS CHIEF INVESTMENT OFFICER | --- | --- | |-------|-------| | | | | | | | | | | | | 4 Certain information in this presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which Comtech operates and the beliefs a ...

Financial Data and Key Metrics - The company's financial performance for Q4 2024 was below expectations, with significant pressure on margins, particularly in the satellite and space segment, which experienced a decline in adjusted EBITDA margins [12][14] - The company reported a record-funded backlog of almost $800 million, reflecting strong customer demand for its technologies, products, and solutions [13] - The company faced margin headwinds due to balance sheet-related issues impacting manufacturing and deliveries, as well as cost growth on cutting-edge, non-recurring engineering-related programs nearing completion [15] - A delay in the receipt of a large troposcatter-related foreign military sales order also negatively impacted profitability [15] Business Line Data and Key Metrics - Both the terrestrial and wireless networks business and the satellite and space business performed roughly in line with revenue expectations, but the satellite and space segment experienced margin pressure [14] - The company is undergoing a strategic review to identify alternatives for its terrestrial and wireless networks business, aiming to unlock value and simplify the capital structure [9] - The company is focusing on becoming a pure-play satellite and space communications company, targeting end markets undergoing technology-driven transformation cycles [10] Market Data and Key Metrics - The company's satellite and space segment is positioned to serve growing end markets, with a strong backlog indicating sustained demand [13] - The timing and amount of foreign military sales orders, such as the troposcatter-related order, are difficult to predict due to factors like political influences and defense spending budgets [16] Company Strategy and Industry Competition - The company is executing a transformation strategy to focus on operational discipline, execution, and profitable growth in its core markets [8] - The company aims to simplify its portfolio by divesting non-core businesses and focusing on high-margin opportunities in satellite and space communications [9][10] - The company is prioritizing customer-funded R&D projects to reduce costs and improve margins, while maintaining a strong engineering talent pool [42][43] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the challenges in the current operating environment but expressed confidence in the company's strong foundation and competitive position [7][13] - The company is committed to improving profitability by transitioning development projects into production, which is expected to enhance margins [29] - Management emphasized the importance of customer-funded R&D and the potential for margin improvement as projects move into production [43][45] Other Important Information - The company is winding down its Basingstoke facility, which is expected to reduce costs and improve the bottom line in the satellite and space segment [48][62] - The company is working to reduce unbilled receivables, particularly in the satellite and space segment, with progress expected in Q1 2025 [31][32] Q&A Session Summary Question: Strategic Review of Terrestrial Business - The strategic review process for the terrestrial and wireless networks business is ongoing, with the company entertaining various interested parties [21] - Post-divestiture, the company anticipates reducing its cost structure and simplifying its capital structure, including paying down debt and addressing preferred shares [22][23] Question: Margin Headwinds and Operational Improvements - The margin headwinds in Q4 were driven by development projects in the satellite and space segment, particularly in amplifiers and modems, which have lower margins during the development phase [26][28] - The company expects margins to improve as these projects transition into production, with some projects expected to move into production in the second and third quarters of fiscal 2025 [29][56] Question: Unbilled Receivables and Liquidity - The company saw a reduction in unbilled receivables in Q4 and expects further reductions as deliveries on key programs, such as the Army and Marines next-gen tropo programs, are completed [31][32] - The company anticipates generating sufficient cash flow to meet obligations without additional financing, even if the terrestrial business divestiture does not occur [30] Question: R&D Investment Trends - The company's R&D expenses as a percentage of revenue have declined, but this is partly due to an increase in customer-funded R&D, which is reflected in revenues and cost of sales rather than reported R&D expenses [40][41] - The company is prioritizing high-margin R&D projects and focusing on transitioning development projects into production to improve profitability [42][43] Question: TFSR Contract Status - The TFSR contract remains under protest, with no clear timeline for resolution, as new protests are filed each time the contract is reawarded [37][38] Question: Basingstoke Facility Wind-Down - The Basingstoke facility, which had around 100 employees, is being wound down, and the company expects a meaningful reduction in expenditures as a result [62][63] Question: Future Revenue and Margin Expectations - For Q1 2025, the company expects revenue to remain stable compared to Q4 2024, with improved EBITDA performance [47] - The company anticipates margin improvement as development projects transition into production, particularly in the satellite and space segment [55][56]

Comtech Telecommunications (CMTL) came out with a quarterly loss of $0.35 per share versus the Zacks Consensus Estimate of $0.05. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -800%. A quarter ago, it was expected that this communications company would post earnings of $0.08 per share when it actually produced earnings of $0.20, delivering a surprise of 150%.Over the last four quarters, the ...