Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Comtech Telecommunications (CMTL) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The consensus estimate predicts a quarterly loss of $0.20 per share, reflecting a year-over-year change of -183.3% [3]. - Expected revenues are $125.53 million, down 17.4% from the same quarter last year [4]. Estimate Revisions - The consensus EPS estimate has been revised 289% lower in the last 30 days, indicating a significant reassessment by analysts [5]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [11][12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. - Comtech currently holds a Zacks Rank of 5, making it challenging to predict an earnings beat [13]. Historical Performance - In the last reported quarter, Comtech was expected to post earnings of $0.05 per share but instead reported a loss of $0.35, resulting in a surprise of -800% [14]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [15]. Conclusion - Comtech does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [18].

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]

Core Viewpoint - Comtech Telecommunications (CMTL) reported a quarterly loss of $0.35 per share, significantly missing the Zacks Consensus Estimate of $0.05, marking an earnings surprise of -800% compared to earnings of $0.29 per share a year ago [1][2] Financial Performance - The company posted revenues of $126.19 million for the quarter ended July 2024, which was 1.97% below the Zacks Consensus Estimate and down from $148.81 million in the same quarter last year [2] - Over the last four quarters, Comtech has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once as well [2] Stock Performance - Comtech shares have declined approximately 54.1% since the beginning of the year, contrasting with the S&P 500's gain of 21.9% [3] - The company's current Zacks Rank is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $140.7 million, while for the current fiscal year, the estimate is $0.55 on revenues of $601.67 million [7] - The trend of estimate revisions for Comtech has been favorable ahead of the earnings release, although this could change following the recent report [6] Industry Context - The Wireless Equipment industry, to which Comtech belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The performance of Comtech's stock may also be influenced by the overall outlook for the industry [8]

Exhibit 10.1 WAIVER AND AMENDMENT NO. 1 TO CREDIT AGREEMENT This WAIVER AND AMENDMENT NO. 1 TO CREDIT AGREEMENT (this "Amendment") is entered into as of October 17, 2024, by and among COMTECH TELECOMMUNICATIONS CORP., a Delaware corporation ("Comtech", and together with those additional entities that hereafter become parties to the Credit Agreement as Borrowers in accordance with the terms thereof, each, a "Borrower" and individually and collectively, jointly and severally, the "Borrowers"), the Lenders ide ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended July 31, 2024 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-7928 | --- | --- | |-----------------------------------------------------------------------------------------------------|-----------------------------------------------| | (S ...

Core Insights - The article compares Comtech Telecommunications (CMTL) and Qualcomm (QCOM) to determine which stock offers better value for investors [1] Valuation Metrics - CMTL has a forward P/E ratio of 7.75, while QCOM has a forward P/E of 15.93 [5] - CMTL's PEG ratio is 0.97, indicating a favorable valuation relative to its expected earnings growth, compared to QCOM's PEG ratio of 1.40 [5] - CMTL's P/B ratio is 0.30, significantly lower than QCOM's P/B ratio of 7.86, suggesting CMTL is undervalued relative to its book value [6] Zacks Rank and Earnings Outlook - CMTL has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while QCOM has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for CMTL is a positive indicator for value investors [3] Overall Conclusion - CMTL exhibits stronger estimate revision activity and more attractive valuation metrics than QCOM, making it a superior option for value investors at this time [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Comtech Telecommunications (CMTL) Analysis - CMTL has shown a price increase of 30.3% over the past four weeks, indicating growing investor interest [3] - The stock gained 35.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - CMTL has a beta of 1.59, suggesting it moves 59% more than the market in either direction, indicating fast-paced momentum [4] - CMTL has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - CMTL is trading at a Price-to-Sales ratio of 0.22, indicating it is relatively cheap at 22 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides CMTL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Message - Ken Peterman, former CEO and Chairman of Comtech Telecommunications Corp, endorses a complete board overhaul to restore stockholder value [1] - Peterman is the third former CEO of Comtech to call for a fully reconstituted Board of Directors [2] Board and Leadership Changes - Peterman's endorsement follows an open letter by Fred Kornberg and Michael Porcelain detailing the urgent need for board and leadership changes [2] - The current Board's actions have disrupted progress, driven away executives, impacted customer relations, and impeded stockholder value [4] - The June 2024 financing deal had a blended interest rate of 14.0%, with an effective interest rate exceeding 18.0% due to warrants issued to lenders [4] Strategic Initiatives - Peterman was a driving force behind the One Comtech initiative, aimed at unifying businesses, cutting operating costs, and driving efficiencies [3] - The One Comtech strategy was built on the foundation laid by Fred Kornberg and Mike Porcelain, focusing on acquisitions and operational excellence [4] Operational and Strategic Expertise - Mike Porcelain was instrumental in expanding Next-Generation 911 and satellite earth station product lines, and overseeing acquisitions like Solacom Technologies Inc and UHP Networks [4] - Fred Kornberg's tenure as CEO transformed Comtech from less than $20 million in revenue to a global leader with over 2,000 employees [5] Shareholder Perspective - Peterman, as a large stockholder, emphasizes the need for a Board with deep operational expertise and a proven track record of delivering long-term stockholder value [6] - His endorsement is independent and based on his assessment of what is best for Comtech's stockholders, customers, and employees [6] Background on Ken Peterman - Ken Peterman is the Founder and CEO of TheSpyGlass Group, specializing in defense and aerospace market trends [7] - He served as President and CEO of Comtech from August 2022 and was previously President of Viasat Government Systems from 2013 to 2021 [7]