Comtech Telecommunications(CMTL) - 2026 Q2 - Quarterly Results

Financial Performance - Consolidated net sales were $106.8 million, a decrease of 15.6% compared to $126.6 million in the second quarter of fiscal 2025[5] - Gross profit increased to $36.2 million, or 33.9% of consolidated net sales, up from $33.7 million, or 26.7% in the prior year[6] - Adjusted EBITDA was $9.1 million, representing an increase of 214% compared to $2.9 million in the second quarter of fiscal 2025[10] - Net bookings reached $175.4 million, an increase of 120.9% year-over-year, with a book-to-bill ratio of 1.64x[11] - Consolidated backlog was $731.6 million, with revenue visibility of approximately $1.1 billion at the end of the quarter[12] - Operating loss improved to $1.2 million from $10.3 million in the second quarter of fiscal 2025[8] - Cash flows provided by operations were $4.9 million, marking the fourth consecutive quarter of positive operating cash flows[13] Segment Performance - The Satellite and Space Communications segment reported net sales of $50.6 million, a decrease of 31.3% compared to the prior year[15] - Allerium segment net sales increased by 6.2% to $56.2 million, with a book-to-bill ratio of 2.51x[20][23] Cost Management and Savings - The company expects to achieve annualized cost savings of approximately $3.0 million from operational efficiency initiatives[18] - Comtech's CEO transition costs amounted to $305,000 for the three months ended January 31, 2026[38] - The company incurred restructuring costs of $4,083,000 for the six months ended January 31, 2026, down from $9,884,000 in the same period of 2025, indicating a reduction of approximately 59%[44] Liquidity and Borrowings - The total outstanding borrowings under Comtech's Credit Facility was $124.7 million, with $7.6 million drawn on the Revolver Loan[29] - The company's available sources of liquidity totaled $49.9 million, including cash and cash equivalents of $30.2 million as of January 31, 2026[33] - Cash and cash equivalents at the end of the period were $32.8 million, down from $40.0 million at the end of July 2025, a decrease of about 18%[42] Net Loss and Equity - Comtech's net loss attributable to common stockholders for the three months ended January 31, 2026, was $20.16 million, compared to a loss of $22.36 million in the same period of 2025[38] - Net loss for the three months ended January 31, 2026, was $13.6 million, compared to a net loss of $48.7 million for the same period in 2025, indicating an improvement of approximately 72%[42] - Total stockholders' equity decreased from $104.4 million to $65.6 million, a decline of approximately 37%[40] Asset Management - Total assets decreased from $740.8 million on July 31, 2025, to $703.8 million on January 31, 2026, a decline of approximately 5%[40] - Current liabilities decreased from $158.2 million to $143.3 million, representing a reduction of about 9.4%[40] - The company’s inventories decreased from $69.0 million to $66.0 million, a reduction of about 4.2%[40] - The company’s accounts receivable decreased from $144.8 million to $127.9 million, a decline of approximately 11.7%[40] Future Outlook - The company plans to host a conference call with investors and analysts on March 16, 2026, to discuss its financial results and future outlook[30] - Adjusted EBITDA is not provided for future guidance, indicating the company is focusing on operational adjustments without specific financial targets[43] Fiscal Year Results - The company reported a GAAP net loss of $139,098,000 for the fiscal year 2025, with a net loss per diluted common share of $6.95[47] - Non-GAAP measures for the fiscal year 2025 showed a net loss of $13,775,000, which is a significant improvement from a net loss of $70,758,000 in the previous year[47] - The company recognized impairment of long-lived assets, including goodwill, amounting to $79,555,000 for the fiscal year 2025[47] - The total amortization of stock-based compensation for the fiscal year 2025 was $3,120,000, consistent with the previous year's figures[47] - The company is actively evaluating its Non-GAAP effective income tax rate, which may differ materially from its GAAP effective income tax rate[45]