Financial Performance - Consolidated net sales for Q2 fiscal 2024 were $134.2 million, a slight increase of $0.5 million or 0.4% year-over-year, but a decline from $151.9 million in Q1 fiscal 2024[15] - Adjusted EBITDA for Q2 fiscal 2024 was $15.1 million, representing an 11.3% margin, compared to $18.4 million (12.1% margin) in Q1 fiscal 2024 and $11.3 million (8.5% margin) in Q2 fiscal 2023, reflecting a 33% increase year-over-year[16][37] - GAAP operating income for Q2 fiscal 2024 was $3.0 million, an improvement from $2.1 million in Q1 fiscal 2024 and a loss of $0.8 million in Q2 fiscal 2023, marking the third consecutive quarter of GAAP operating income[20][35] - The company reported a net loss of $10.558 million for the three months ended January 31, 2024, compared to a net loss of $4.805 million in the same period of 2023[90] - For the fiscal year 2023, the company reported a GAAP net loss of $(14,660,000) and a net loss per diluted share of $(1.21)[97] Sales and Bookings - Total net bookings for Q2 fiscal 2024 were $141.8 million, resulting in a book-to-bill ratio of 1.06x[40] - The company secured a multi-year Global Field Service Representative contract with the U.S. Army, valued at $544 million, which is expected to contribute significantly to net sales in fiscal 2024[24] - Net bookings in the Terrestrial and Wireless Networks segment reached $74.2 million, including a $48.0 million extension for NG-911 services for the State of Washington[67] - Net bookings in the Satellite and Space Communications segment totaled $67.6 million for the quarter, including over $7.0 million from two foreign militaries for next-generation troposcatter solutions[54] Segment Performance - The Terrestrial and Wireless Networks segment achieved 12% sequential growth and 4% growth compared to Q2 fiscal 2023, driven by performance on NG-911 contracts[16] - Terrestrial and Wireless Networks segment net sales were $55.6 million for Q2 FY24, an increase of 12.3% from Q1 FY24 and 4.3% from Q2 FY23[65] - Operating income for the Terrestrial and Wireless Networks segment in Q2 FY24 was $8.1 million, or 14.6% of segment net sales, compared to $3.3 million or 6.2% in Q2 FY23[66] - Satellite and Space Communications segment net sales were $78.6 million for Q2 FY24, a decrease of $1.8 million compared to Q2 FY23, primarily due to lower sales from the PST divestiture and satellite ground station solutions[52] - Operating income for the Satellite and Space Communications segment in Q2 FY24 was $1.9 million, representing 2.4% of segment net sales, down from $3.3 million or 4.1% in Q2 FY23[53] Margins and Profitability - The company reported a gross margin of 32.2% in Q2 fiscal 2024, compared to 34.3% in Q2 fiscal 2023[15] - Adjusted EBITDA for the Satellite and Space Communications segment was $7.1 million in Q2 FY24, a decrease from $8.2 million in Q2 FY23[53] - Adjusted EBITDA for the Terrestrial and Wireless Networks segment improved to $13.7 million in Q2 FY24 from $8.8 million in Q2 FY23[66] - Gross profit decreased to $43.198 million for the three months ended January 31, 2024, down 5.93% from $45.924 million in the same period of 2023[90] Assets and Liabilities - Total current assets increased to $343.245 million as of January 31, 2024, compared to $305.486 million as of July 31, 2023[92] - Total liabilities decreased to $423.301 million as of January 31, 2024, down from $445.727 million as of July 31, 2023[92] - The company’s cash and cash equivalents increased to $39.956 million as of January 31, 2024, compared to $18.961 million as of July 31, 2023[92] Strategic Initiatives - The relocation of the corporate headquarters to Chandler, Arizona, aims to streamline operations and improve efficiency, supporting the One Comtech transformation[77] - The company is targeting net sales and Adjusted EBITDA for fiscal year 2024 to exceed fiscal 2023 levels despite challenging business conditions[71] Research and Development - Research and development expenses significantly decreased to $6.843 million, down 45% from $12.441 million year-over-year[90] Shareholder Information - The weighted average number of common shares outstanding for the three months ended January 31, 2024, was 28.662 million, compared to 27.954 million in the same period of 2023[90] - The weighted average diluted shares outstanding for the six months ended January 31, 2024, was 28,958,000[97]

CHANDLER, Ariz.--(BUSINESS WIRE)--March 18, 2024-- Comtech (NASDAQ: CMTL) (“the Company”) today announced its second quarter fiscal 2024 financial results in a letter to shareholders, which has been posted to the Investor Relations section of Comtech's website. Investors are invited to access the second quarter fiscal 2024 shareholder letter at comtech.com/investors/. A copy of the letter will also be filed with the Securities and Exchange Commission in a Form 8-K. Comtech will host its previously schedul ...

MELVILLE, N.Y.--(BUSINESS WIRE)--March 13, 2024-- Comtech (NASDAQ: CMTL) today announced that it plans to release its second quarter fiscal 2024 results after the market closes on Monday, March 18, 2024. At 5:00 p.m. ET that day, the Company will hold a conference call to discuss its second quarter fiscal 2024 results, operations, and business trends. A webcast of the call will be available to the public at the investor relations section of the Comtech web site at www.comtech.com. Alternatively, investors ...

MELVILLE, N.Y.--(BUSINESS WIRE)--Comtech (NASDAQ: CMTL) (the “Company”) today announced that its Board of Directors has appointed John Ratigan, Chief Corporate Development Officer (“CCDO”), as interim Chief Executive Officer, effective immediately. Mr. Ratigan succeeds Ken Peterman, who has been terminated as President and CEO and will cease to serve on the Board. Mr. Peterman’s termination was for conduct unrelated to Comtech’s business strategy, financial results or previously filed financial statements. ...

MELVILLE, N.Y.--(BUSINESS WIRE)--February 7, 2024-- Comtech (NASDAQ: CMTL), a global technology leader, today announced its Canadian subsidiary was invited by Innovation Canada, a sector of Innovation, Science and Economic Development Canada, to join a select group of companies participating in the Accelerated Growth Service (AGS) program. The AGS program offers support to a number of high-growth, high-potential, qualifying businesses across Canada. As part of the program, Comtech will gain access to key ...

MELVILLE, N.Y.--(BUSINESS WIRE)--February 5, 2024-- Comtech (NASDAQ: CMTL) announced today that Washington State recently awarded the company a $48 million contract extension to continue providing Next Generation 911 (NG911) services over the next five years, with the option to extend through 2034. Washington State initially contracted Comtech to design, deploy and operate next generation public safety technologies and secure and reliable communications capabilities in 2016, making Washington a national ...

MELVILLE, N.Y.--(BUSINESS WIRE)--Feb. 1, 2024--Comtech (NASDAQ: CMTL) announced today it received approval from the U.S. Army Contracting Command to move forward on the Company’s previously announced $544 million Global Field Service Representative (GFSR) contract. Under this contract, Comtech will provide onsite professional engineering services, as well as supply and support the Company’s market leading satellite and terrestrial networking communications technologies for the Project Manager Tactical Netw ...

Comtech Telecommunications (CMTL) shares rallied 15.3% in the last trading session to close at $7.76. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.6% loss over the past four weeks.The uptrend in share prices is largely attributable to the fresh capital infusion in the company. Comtech recently secured a $45 million investment from its existing shareholders – White Hat Capital Partners LP and Magnetar.Th ...

MELVILLE, N.Y.--(BUSINESS WIRE)--January 22, 2024 -- Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”), a leading global technology company providing terrestrial and wireless network solutions, next-generation 911 emergency services, satellite and space communications technologies, and cloud native capabilities, today announced a $45.0 million investment by current shareholders White Hat Capital Partners LP (“White Hat”), an investment firm focused on sustainable value creation in ...

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $151.9 million for Q1 fiscal 2024, representing a 15.9% increase year-over-year and a 2.1% increase sequentially [119] - Adjusted EBITDA for Q1 fiscal 2024 was $18.4 million, a 72% increase from Q1 fiscal 2023, with an adjusted EBITDA margin of 12.1%, up from 8.2% in the prior year [120] - Operating income for Q1 fiscal 2024 was $2.1 million, compared to an operating loss of $9.7 million in the same quarter last year, marking the second consecutive quarter of positive GAAP operating income [97][10] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment generated $102 million in sales, while the Terrestrial and Wireless Network segment reported $49.5 million [119] - The company secured significant contract wins, including a $20 million order for portable troposcatter systems and a $9.6 million contract for anti-jam modem technologies [110][111] Market Data and Key Metrics Changes - The Canadian government has mandated the nationwide adoption of next-generation 911 services by March 2025, presenting a significant market opportunity for the company [90] - The company is positioned as a leader in providing Next Gen 911 capabilities, with recent wins indicating strong market demand [53] Company Strategy and Development Direction - The company is undergoing a transformation known as "One Comtech," aimed at improving operational performance and collaboration across its previously siloed businesses [3][4] - The focus is on delivering comprehensive solutions that enhance customer value and address complex challenges in network connectivity [4][26] - The company is actively managing its balance sheet and exploring refinancing options for its credit facility, which matures in October 2024 [14][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment, including inflation, rising interest rates, and geopolitical tensions, but expressed confidence in the company's growth trajectory [36][122] - The company has visibility into approximately $1.7 billion of future revenue, bolstered by recent contract wins [96][106] Other Important Information - The company completed the divestiture of its Solid-State Power Amplifier product line on November 7, 2023, which will not be included in future net sales [18][121] - The implementation of lean manufacturing principles is expected to drive continuous improvement across the enterprise [12][11] Q&A Session Summary Question: Update on refinancing and timing - Management indicated that discussions with lenders are ongoing and that they are exploring various alternatives to achieve a favorable refinancing outcome [20][66] Question: Details on the Canadian E911 opportunity - Management confirmed that the recent win is part of a broader mandate for next-generation services and highlighted the similarities between the Canadian and U.S. markets [54][104] Question: Impact of divestiture on financials - Management stated that the guidance of 1% to 3% growth is based on figures that included the divested product line, suggesting that the actual growth could be higher [46][121] Question: Specifics on restructuring costs - Management noted that restructuring costs are expected to unwind over the course of the year, with minimal severance payments remaining [43][44] Question: Market size comparison between Canada and the U.S. - Management compared the Canadian market size to California's population, indicating a similar addressable market [54]