Comtech Telecommunications Corp. Announces Record First Quarter Results for Fiscal 2001; Revenues Up 239%; Net Income up 275%; EPS Up 127%.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--Dec. 13, 2000 Comtech Comtech Computer Technology Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CMTL CMTL Chief Military Training Leader CMTL Center for Mathematics, Teaching and Learning ) today reported sales of $39.8 million, operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $3.6 million and net income of $2.0 million or $0.25 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. for its first fiscal quarter ended October October: see month. 31, 2000. For the same quarter of last year, the Company had sales of $11.7 million, operating earnings of $0.9 million, and net income of $0.5 million or $0.11 per share diluted. Earnings per share were 127% higher than in the first quarter of fiscal 1999 despite the increased number of diluted shares from 5,082,000 to 7,891,000 primarily as a result of our follow-on offering Follow-On Offering An offering of additional shares after a company has had an initial public offering. Notes: This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project. in February February: see month. . Revenues were 239% higher in the first three months of fiscal 2001 than a year earlier. Revenue contribution from EF Data Corp., which Comtech acquired on July July: see month. 10, 2000, was $23.0 million. Operating earnings increased by 310%, and net income increased by 275%. Net earnings were also adversely affected by the continuing start-up Start-up The earliest stage of a new business venture. expenses associated with the Company's Mobile Data Communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. Services segment. Reference is made to the attached tables for further information. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. as of October 31, 2000 was $44.8 million, including $16.6 million from EF Data, compared to $36.2 million a year earlier. Fred Kornberg Korn·berg , Arthur Born 1918. American biochemist. He shared a 1959 Nobel Prize for work on the biological synthesis of nucleic acids. , President and Chief Executive Officer, said, "I am pleased that fiscal 2001 is off to a great start with another record quarter for Comtech, driven by our telecommunications transmission segment. "Our mobile datacom segment continued to progress as well. To date we received approximately $5.1 million from the U.S. Army including our $3.1 million order announced last quarter. We are on schedule to equip e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. approximately 500 U.S. Army trucks with Movement Tracking Systems (MTS (1) See Microsoft Transaction Server. (2) (Modular TV System) The stereo channel added to the NTSC standard, which includes the SAP audio channel for special use. 1. MTS - Message Transport System. 2. ) by the end of the second quarter. Based on our assessment of the Army's budget delays for MTS, we now expect to receive additional orders under this contract in the third and fourth quarters of the current fiscal year. Following our strategy to accompany U. S. Government deployment of our satellite tracking technology with commercial deployment, we hope to secure our first commercial order during the second half of the year, marking our initial penetration into a potentially huge market for these types of mobile satellite fleet tracking systems." Kornberg continued, "With the integration of Comtech EF Data complete, we are poised for continued strong growth in our telecommunications transmission segment. Based on our past annual revenue performance we have previously indicated that we expect an increase in revenues of between 130-140% and approximately 30% earnings growth for fiscal 2001 which would make fiscal 2001 a record year in all respects - revenues, operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. , and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ." Mr. Kornberg concluded: "Our core business has been consistently reporting strong growth for over five years and the EF Data acquisition has significantly heightened our expectations and added to this core segment. This quarter we've posted record revenues and we were named one of the 200 Best Small Companies in America by Forbes Magazine in recognition of our past annual revenue and EPS growth as well as our return on equity. We have also received a Certificate of Achievement in recognition of ranking No. 19 in Gene Walden's book, The 100 Best Stocks to Own for Under $25, 2nd Edition. Both internal growth and acquisitions have been sharing the spotlight Spotlight can refer to at least three types of lighting:
Comtech Telecommunications Corp. (www.comtechtel.com) is an innovative player in domestic and global high-technology markets. Through its operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , Comtech pursues opportunities in three interrelated in·ter·re·late tr. & intr.v. in·ter·re·lat·ed, in·ter·re·lat·ing, in·ter·re·lates To place in or come into mutual relationship. in market segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications services. In each of these segments, growth is driven by increasing demand for telecommunications infrastructure and network and messaging services. The company's specialties include the design and manufacture of advanced products and networks used for transmission of voice, data and video using satellite, over the horizon microwave, terrestrial Dealing with the earth. See terrestrial link. line of sight and other wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. systems. More than 275 distinct Comtech products are in service in more than 100 countries. The Company has scheduled an investor conference call for 11:00AM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT Wednesday, December 13, 2000. Investors and the public are invited to access a live webcast of the conference call from the news section of the Comtech web site, www.comtechtel.com. A replay of the webcast will be available at the same location for 30 days following the conference call. Certain of the statements contained herein, including, but not limited to, information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future performance and financial condition of the Company, the plans and objectives of the Company's management, and the Company's assumptions regarding such performance and plans are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Included among the factors which might cause such results to differ are: the Company's ability to keep pace with rapid technological changes; our backlog being subject to customer cancellation or modification; our sales to the U. S. Government being subject to funding, deployment and other risks; our fixed price contracts being subject to risk; the highly competitive nature of our markets; our dependence on component availability, subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. availability and performance by key suppliers; our dependence on international sales; our mobile data communications business being in a developmental stage. Additionally, these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by cautionary statements contained in the Company's Securities and Exchange Commission filings.
COMTECH TELECOMMUNICATIONS CORP.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended October 31
2000 1999
---- ----
Net Sales $ 39,846,000 11,747,000
Cost of sales 26,738,000 8,406,000
------------- -----------
Gross profit 13,108,000 3,341,000
Operating expenses:
Selling, general and administrative 6,167,000 1,922,000
Research and development 2,797,000 530,000
Amortization of intangibles 594,000 24,000
------------ -----------
Total operating expenses 9,558,000 2,476,000
Operating income (EBIT) 3,550,000 865,000
Other (income) expense:
Interest expense 957,000 37,000
Interest income (593,000) (32,000)
------------ -----------
Income before provision for income taxes 3,186,000 860,000
Provision for income taxes 1,179,000 325,000
------------ -----------
Net income $ 2,007,000 535,000
============ ===========
Basic income per share $ 0.28 0.12
Diluted income per share $ 0.25 0.11
Weighted average number of
common shares outstanding-basic
computation 7,269,000 4,399,000
Potential dilutive common shares 622,000 683,000
------------ -----------
Weighted average number of common
and common equivalent shares
outstanding assuming dilution -
diluted computation 7,891,000 5,082,000
============ ===========
EBITDA (1) $ 5,308,000 1,283,000
============ ===========
(1) Earnings before interest, taxes, depreciation and amortization.
COMTECH TELECOMMUNICATIONS CORP.
Consolidated Balance Sheets
October 31 July 31
2000 2000
(Unaudited) (Audited)
------------ -----------
Assets
Current assets:
Cash and cash equivalents $ 16,752,000 12,587,000
Marketable investment securities 19,048,000 18,634,000
Accounts receivable, less
allowance for doubtful accounts of
$747,000 at October 31, 2000 and
$806,000 at July 31, 2000 36,019,000 24,204,000
Other receivables -- 9,038,000
Inventories, net 25,630,000 26,170,000
Prepaid expenses
and other current assets 642,000 583,000
Deferred tax asset - current 3,937,000 3,125,000
------------ ------------
Total current assets 102,028,000 94,341,000
Property, plant and equipment, net 10,282,000 10,738,000
Intangible assets, net of
amortization of $902,000 at
October 31, 2000 and
$308,000 at July 31,2000 17,075,000 17,669,000
Other assets 487,000 468,000
Deferred tax asset - non current 2,815,000 2,815,000
------------ ------------
Total assets $132,687,000 126,031,000
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Current installments
of long-term debt $ 2,100,000 2,100,000
Current installments of capital
lease obligations (including
payable to related party of
$355,000 at October 31, 2000
and $347,000 at July 31, 2000) 517,000 608,000
Accounts payable 10,831,000 11,260,000
Accrued expenses and
other current liabilities 17,371,000 13,657,000
Income tax payable 2,919,000 1,449,000
------------ ------------
Total current liabilities 33,738,000 29,074,000
Capital lease obligations, less
current installments (including
payable to related party of
$63,000 at October 31, 2000
and $154,000 at July 31,2000) 874,000 908,000
Long-term debt,
less current installments 37,900,000 37,900,000
Other long-term liabilities 340,000 367,000
------------ ------------
Total liabilities 72,852,000 68,249,000
Stockholders' equity:
Preferred stock, par value $.10 per
share; shares authorized and
unissued 2,000,000 -- --
Common stock, par value $.10 per share;
authorized 30,000,000 shares, issued
7,357,899 shares at October 31, 2000
and 7,345,376 shares at July 736,000 735,000
31,2000
Additional paid-in capital 66,781,000 66,740,000
Accumulated other comprehensive income (119,000) (113,000)
Accumulated deficit (6,680,000) (8,687,000)
------------ ------------
60,718,000 58,675,000
Less:
Treasury stock (82,500 shares at
October 31, 2000 and July 31, 2000) (184,000) (184,000)
Deferred compensation (699,000) (709,000)
------------ ------------
Total stockholders' equity 59,835,000 57,782,000
------------ ------------
Total liabilities
and stockholders' equity $132,687,000 126,031,000
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion