Comtech Telecommunications(CMTL)

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COMTECH ALERT: Bragar Eagel & Squire, P.C. is Investigating Comtech Telecommunications Corp. on Behalf of Comtech Stockholders and Encourages Investors to Contact the Firm
GlobeNewswire News Room· 2024-06-20 01:00
Following news of Peterman's termination, Comtech's stock price fell $1.57 per share, or 27.26%, to close at $4.19 per share on March 13, 2024. Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorn ...
Comtech Telecommunications(CMTL) - 2024 Q3 - Earnings Call Transcript
2024-06-19 06:40
Comtech Telecommunications Corp. (NASDAQ:CMTL) Q3 2024 Earnings Conference Call June 18, 2024 8:30 AM ET Company Participants Maria Ceriello - IR John Ratigan - CEO Michael Bondi - CFO Conference Call Participants Joe Gomes - Noble Capital Mike Crawford - B. Riley Securities FBR Gregory Burns - Sidoti Operator Welcome to Comtech's Fiscal Third Quarter 2024 Earnings Conference Call. As a reminder, this conference is being recorded today, Tuesday, June 18, 2024. I would now like to turn the conference over to ...
Comtech Telecommunications (CMTL) Q3 Earnings Top Estimates
ZACKS· 2024-06-18 14:41
Core Viewpoint - Comtech Telecommunications has shown mixed performance in earnings and revenue, with a significant decline in stock value compared to the broader market, raising questions about future performance and industry outlook. Company Performance - Over the last four quarters, Comtech has surpassed consensus EPS estimates two times [1] - The company reported quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.08 per share, compared to a loss of $0.33 per share a year ago [6] - Comtech is expected to post a quarterly loss of $0.24 per share in its upcoming report, representing a year-over-year change of +40% [5] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $146.11 million, and for the current fiscal year, it is $0.43 on revenues of $568.67 million [4] Revenue Insights - Comtech posted revenues of $128.08 million for the quarter ended April 2024, missing the Zacks Consensus Estimate by 6.12%, compared to year-ago revenues of $136.32 million [7] - The company has topped consensus revenue estimates two times over the last four quarters [7] Stock Performance - Comtech shares have lost about 74.3% since the beginning of the year, while the S&P 500 has gained 14.8% [2] - The estimate revisions trend for Comtech is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [14] Industry Context - The Wireless Equipment industry, to which Comtech belongs, is currently in the bottom 13% of over 250 Zacks industries, suggesting a challenging environment [10] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Comtech's stock performance [9]
Comtech Telecommunications(CMTL) - 2024 Q3 - Quarterly Results
2024-06-18 12:14
[CEO Letter to Shareholders](index=2&type=section&id=CEO%20Letter%20to%20Shareholders) [Strengthened Balance Sheet and Refinancing](index=2&type=section&id=Strengthened%20Balance%20Sheet%20and%20Refinancing) The company has successfully completed a major refinancing, securing a new credit facility that strengthens its balance sheet, consisting of a $60 million revolver and a $162 million term loan, both maturing in 2028, providing stability for operational improvements and future growth - Comtech secured a new credit facility comprising a **$60 million** revolver and a **$162 million** term loan, maturing in **2028**[130](index=130&type=chunk)[131](index=131&type=chunk) - The strengthened balance sheet is now properly aligned with near- and medium-term operating goals, allowing the company to focus on operational improvements[3](index=3&type=chunk)[1](index=1&type=chunk) [Operational Priorities and Business Value](index=4&type=section&id=Operational%20Priorities%20and%20Business%20Value) The CEO's top operational priority is now accelerating the cash conversion cycle, specifically by managing down unbilled receivables, as the company emphasizes its fundamental value rooted in its mission-critical role in providing complex communication solutions for public safety (911) and satellite/space markets - The CEO has made accelerating the cash conversion cycle, particularly liquidating unbilled receivables, the top operational priority[9](index=9&type=chunk)[2](index=2&type=chunk) - Comtech plays a mission-critical role in public safety with its **911** technology and in satellite and space markets, providing essential communications infrastructure[5](index=5&type=chunk)[6](index=6&type=chunk) - Despite recent challenges, management believes in the underlying value of its business segments and their end markets, citing growing demand and emerging opportunities[135](index=135&type=chunk)[13](index=13&type=chunk) [Recent Key Developments](index=7&type=section&id=Recent%20Key%20Developments) [New Business Wins](index=7&type=section&id=New%20Business%20Wins) Comtech has secured several significant contracts in Q3, highlighted by a major Next Generation 911 (NG911) contract with the Commonwealth of Massachusetts, alongside orders from the U.S. Army, an international military, and extensions for public safety and mobile network operator services, demonstrating continued market trust and demand - Awarded a major **NG911** contract by the Commonwealth of Massachusetts with an initial five-year value over **$140 million**, and a potential total value over **$250 million** with a five-year extension[102](index=102&type=chunk)[119](index=119&type=chunk) - Secured over **$13.5 million** in funded orders from the U.S. Army for **VSAT** equipment and over **$6.0 million** for cyber training solutions[19](index=19&type=chunk) - Extended critical **NG-911** services for a large Midwestern county with a potential value exceeding **$10.0 million**[11](index=11&type=chunk) - Received over **$5.5 million** in orders from the Japan Aerospace Exploration Agency and extended **SMS** software services for an international mobile network operator for over **$7.0 million**[19](index=19&type=chunk) [Leadership Team Additions](index=9&type=section&id=Leadership%20Team%20Additions) The company has strengthened its leadership team with key appointments, including Jeff Robertson as President of the Terrestrial & Wireless Networks (T&W) segment, Roly Rigual as VP of Business Development for the Satellite & Space Communications segment, and further additions in the T&W segment with a new COO and a General Manager for Safety & Security Technologies - Appointed public safety industry veteran Jeff Robertson as the new President of the Terrestrial & Wireless Networks (**T&W**) business segment[20](index=20&type=chunk)[142](index=142&type=chunk) - Hired Roly Rigual as VP of Business Development in the Satellite & Space Communications segment to enhance government and defense customer relations[21](index=21&type=chunk) - Further strengthened the **T&W** segment by appointing Tom Guthrie as **COO** and John Whitehead as General Manager of the Safety & Security Technologies (**SST**) unit[154](index=154&type=chunk) [Fiscal Q3 2024 Financial Results](index=12&type=section&id=Fiscal%20Q3%202024%20Financial%20Results) [Consolidated Results](index=12&type=section&id=Consolidated%20Results) For the third quarter of fiscal 2024, Comtech reported consolidated net sales of $128.1 million, a decrease of approximately 6% year-over-year, with a GAAP operating loss of $3.5 million, an improvement from the $5.3 million loss in the prior year's quarter, and Adjusted EBITDA of $11.9 million, while net bookings were $101.7 million, resulting in a book-to-bill ratio of 0.79x Consolidated Financial Highlights (Q3, $ millions) | Metric | Q3 FY2024 ($ millions) | Q3 FY2023 ($ millions) | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $128.1 | $136.3 | -6.0% | | GAAP Operating Loss | ($3.5) | ($5.3) | Improvement | | Adjusted EBITDA | $11.9 | $12.5 | -4.8% | | Net Bookings | $101.7 | $185.6 | -45.2% | - The quarterly book-to-bill ratio was **0.79x**, with total backlog standing at **$653.4 million** as of April 30, 2024[24](index=24&type=chunk) - The operating loss in Q3 2024 includes **$2.5 million** of CEO transition costs not present in the prior quarter[107](index=107&type=chunk) [Segment Performance](index=14&type=section&id=Segment%20Performance) The two segments showed divergent performance, with Terrestrial & Wireless Networks reporting increased net sales and significantly improved operating income and Adjusted EBITDA margins, while the Satellite & Space Communications segment experienced a decline in net sales, though its operating income and Adjusted EBITDA improved due to cost management [Terrestrial & Wireless Networks](index=14&type=section&id=Terrestrial%20%26%20Wireless%20Networks) The Terrestrial & Wireless Networks segment delivered strong results with net sales of $56.6 million, a 4.6% increase from Q3 2023, with operating income rising to $5.7 million and Adjusted EBITDA improving to $11.3 million, expanding the margin to 20.0%, and net bookings for the quarter at $40.7 million Terrestrial & Wireless Networks Segment Performance (Q3, $ millions) | Metric | Q3 FY2024 ($ millions) | Q3 FY2023 ($ millions) | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $56.6 | $54.1 (approx) | +4.6% | | Operating Income | $5.7 | $9.2 (EBITDA) | N/A | | Adjusted EBITDA | $11.3 | $9.2 | +22.8% | | Adjusted EBITDA Margin | 20.0% | 16.9% | +310 bps | | Net Bookings | $40.7 | $74.2 | -45.1% | - The increase in segment net sales was primarily driven by higher revenue from **NG-911** and call handling services[108](index=108&type=chunk) [Satellite & Space Communications](index=16&type=section&id=Satellite%20%26%20Space%20Communications) The Satellite & Space Communications segment saw net sales decrease by $10.8 million compared to Q3 2023, primarily due to lower sales of troposcatter solutions and the divestiture of the PST product line, yet operating income was $2.8 million and Adjusted EBITDA increased to $7.2 million, driven by lower R&D and SG&A expenses, with net bookings at $61.0 million Satellite & Space Communications Segment Performance (Q3, $ millions) | Metric | Q3 FY2024 ($ millions) | Q3 FY2023 ($ millions) | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $71.6 (approx) | $82.4 (approx) | -13.1% ($10.8) | | Operating Income | $2.8 | N/A | N/A | | Adjusted EBITDA | $7.2 | $6.4 | +12.5% | | Adjusted EBITDA Margin | 10.1% | 7.7% | +240 bps | | Net Bookings | $61.0 | $77.5 | -21.3% | - The decline in net sales reflects lower sales of troposcatter solutions, the **PST Divestiture**, and reduced sales of satellite terminals and equipment for the U.S. Army[49](index=49&type=chunk) [Outlook](index=18&type=section&id=Outlook) [Q4 Fiscal 2024 Guidance](index=18&type=section&id=Q4%20Fiscal%202024%20Guidance) For the fourth quarter of fiscal 2024, Comtech expects net sales and Adjusted EBITDA to be similar to the levels reported in the third quarter of fiscal 2024, as the company believes it is well-positioned for long-term opportunities with a stronger balance sheet and key leadership additions - The company expects net sales and Adjusted EBITDA for **Q4 fiscal 2024** to be similar to **Q3 fiscal 2024**[116](index=116&type=chunk)[50](index=50&type=chunk) - Management expresses confidence in the company's position to capitalize on long-term opportunities, citing a stronger balance sheet, key team additions, and growing end markets[34](index=34&type=chunk)[110](index=110&type=chunk) [Appendix](index=19&type=section&id=Appendix) [Financial Statements](index=21&type=section&id=Financial%20Statements) This section contains the unaudited condensed consolidated financial statements for the period, including the Statements of Operations and Balance Sheets, providing detailed financial data for investor review Statement of Operations (Three Months Ended Apr 30, $ thousands) | Statement of Operations (Three Months Ended Apr 30) | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | Net Sales | 128,076 | 136,316 | | Gross Profit | 38,954 | 43,146 | | Operating Loss | (3,470) | (5,276) | | Net Income (Loss) | 2,795 | (7,458) | [Non-GAAP Reconciliations](index=23&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP financial measures to non-GAAP measures, such as Adjusted EBITDA, explaining adjustments made for items like stock-based compensation, amortization, CEO transition costs, and restructuring costs, to offer a different perspective on the company's performance - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, CEO transition costs, restructuring costs, and other specific items[65](index=65&type=chunk) Reconciliation to Adjusted EBITDA (Q3, $ thousands) | Reconciliation to Adjusted EBITDA (Q3, $ thousands) | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | Net Income (Loss) | 2,795 | (7,458) | | Adjustments (Taxes, Interest, D&A, etc.) | 9,116 | 19,003 | | **Adjusted EBITDA** | **11,911** | **12,545** |
Comtech Telecommunications(CMTL) - 2024 Q3 - Quarterly Report
2024-06-18 12:13
Index During the nine months ended April 30, 2024, we recorded a net discrete tax expense of $1.0 million primarily related to the anticipated timing of the settlement of contingent consideration related to the PST Divestiture. Upon settlement of the contingent consideration, if any, we would expect an offsetting net discrete tax benefit due to the utilization of capital losses that had been previously subject to a full valuation allowance. During the nine months ended April 30, 2023, we recorded a net disc ...
Investigation Into Comtech Telecommunications Corp. (CMTL) Announced by Holzer & Holzer, LLC
Newsfilter· 2024-06-17 21:15
If you purchased Comtech Telecommunications stock and suffered a loss on that investment, you are encouraged to contact Corey Holzer, Esq. at cholzer@holzerlaw.com or Joshua Karr, Esq. at jkarr@holzerlaw.com, call our toll-free number at (888) 508-6832, or visit our website at http://holzerlaw.com/case/comtechtelecommunications/ to discuss your legal rights. Holzer & Holzer, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation ...
Investigation Into Comtech Telecommunications Corp. (CMTL) Announced by Holzer & Holzer, LLC
GlobeNewswire News Room· 2024-06-17 21:15
ATLANTA, June 17, 2024 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Comtech Telecommunications Corp. ("Comtech Telecommunications" or the "Company") (NASDAQ: CMTL) complied with federal securities laws. On June 10, 2024, Comtech Telecommunications announced that it is unable to file its Quarterly Report on Form 10-Q for the period ended April 30, 2024, citing "ongoing efforts to refinance its Credit Facility and complete its quarterly goodwill and going concern reporting considerations. ...
Comtech Telecommunications (CMTL) Delays Filings Again, Deepening Financial Uncertainty – Hagens Berman
GlobeNewswire News Room· 2024-06-17 17:22
Ongoing Refinancing Efforts Cited for Delay In its June 10 filing with the SEC, Comtech attributed the delay to its ongoing efforts to refinance its credit facility and complete reporting requirements related to goodwill and "going concern" considerations. These factors prevented the company from filing its quarterly report for the period ended Apr. 30, 2024, on time. While Comtech expects to file within a five-week grace period allowed by the SEC, the delay raises further concerns about the company's finan ...
Comtech Telecommunications Investigated For Securities Fraud; Block & Leviton Encourages Investors Who Have Lost Money to Contact the Firm
Newsfilter· 2024-06-12 20:59
BOSTON, June 12, 2024 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Comtech Telecommunications Corp. (NASDAQ:CMTL) for potential securities law violations. Investors who have lost money in their Comtech Telecommunications investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/cmtl. On June 10, 2024, Comtech Telecommunications announced a further delay to issuing its financial results, which it attributed to ef ...
Comtech Telecommunications (CMTL) Stumbles After CEO Ouster and Accounting Concerns – Hagens Berman
GlobeNewswire News Room· 2024-06-05 19:18
SAN FRANCISCO, June 05, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Comtech Telecommunications Corp. (NASDAQ: CMTL) investors who suffered substantial losses to take action by submitting your losses here. Website: www.hbsslaw.com/investor-fraud/cmtl Contact the Firm Now: CMTL@hbsslaw.com Phone: 844-916-0895 Next-generation 911 emergency communication company Comtech Telecommunications Corp. (CMTL) has faced a tumultuous period in recent months, raising questions about the Melville-based company's financial ...