Comtech Telecommunications Corp. Announces Results for the 3Q Fiscal 2014 and Updated Guidance
Melville, N.Y., June 5, 2014--Comtech Telecommunications Corp. (NASDAQ:CMTL) today reported its operating results for the three and nine months ended April 30, 2014. Net sales for the third quarter of fiscal 2014 were US$ 88.9 million compared to US$ 69.9 million for the third quarter of fiscal 2013.
The period-over-period increase reflects higher sales in the company's telecommunications transmission and RF microwave amplifiers segments, partially offset by lower sales in its mobile data communications segment. GAAP net income was US$ 5.9 million, or $0.32 per diluted share, for the third quarter of fiscal 2014 as compared to US$ 2.9 million, or $0.17 per diluted share, for the third quarter of fiscal 2013.
Net sales for the nine months ended April 30, 2014 were US$ 257.8 million compared to US$ 235.4 million for the nine months ended April 30, 2013. GAAP net income was $17.2 million, or $0.92 per diluted share, for the nine months ended April 30, 2014 as compared to US$ 12.7 million, or $0.69 per diluted share, for the nine months ended April 30, 2013.
Based on the company's year-to-date results and anticipated fourth quarter performance, the company updated its fiscal 2014 guidance. Fiscal 2014 revenue is now expected to range from $342.0 million to $346.0 million, adjusted EBITDA, as defined in the below table, is now expected to be in the range of $58.0 million to $60.0 million and GAAP diluted earnings per share is now expected to be in the range of $1.25 to $1.30.
Fred Kornberg, President and Chief Executive Officer of Comtech, stated, “We are extremely pleased with our solid third quarter financial results. Our business looks like it is firming up and our outlook for fiscal 2014 has improved. We are excited about the many large growth opportunities we see and are increasingly optimistic that, as we look to next year, fiscal 2015 will be another year of growth on both the top and bottom lines."
Comtech's Board of Directors declared a quarterly cash dividend of US$ 0.30 per share, payable on August 19, 2014, to shareholders of record at the close of business on July 18, 2014. The dividend is the Company’s sixteenth consecutive quarterly dividend. While future dividends will be subject to Board approval, the Board of Directors is currently targeting annual dividend payments aggregating US$ 1.20 per share, according to the company.
Analysts company Raymond James reitereted their "market perform rating" of Comtech comenting that "Comtech reported solid all-around 3Q results, propelled by favorable timing on a major Over-the-Horizon (OTH) project and revenue/margin improvements in the RF segment. Furthermore, management raised its FY14 guidance and strongly hinted at further improvements in FY15."
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