Comtech Telecommunications Corp. Announces Record Results for Fiscal Year 2000.Business Editors/High-Tech Writers MELVILLE, N.Y.--(BUSINESS WIRE)--Oct. 24, 2000 - Revenues up 75% - 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. up 31% - Excluding non-recurring items: - Net income up 139% - 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. up 74% COMTECH 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 that revenues for the fiscal year ended July July: see month. 31, 2000 increased by 75% from $37.9 to $66.4 million, and excluding non-recurring items, net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the increased by 139% from $1.8 to $4.2 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased by 74% from $0.39 to $0.68, each reaching record levels. In connection with the acquisition of EF Data in the last month of fiscal 2000, Comtech incurred non-recurring charges of $10.2 million for acquired in-process R & D and approximately $240 thousand for expenses associated with the integration of facilities and workforce. Reflecting these non-recurring items aggregating approximately $10.4 million, fiscal 2000 had a net loss of $3.9 million or $0.69 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. . Fiscal 1999 net income of $5.3 million and earnings per share of $1.15 diluted, reflected non-recurring items comprising a total $4.6 million net tax benefit due to a net reduction in the Company's valuation reserve for deferred tax assets and a $1.2 million loss due to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of the operation of the Company's wireless local loop segment. Revenues for the fourth quarter of fiscal 2000 were a record $25.5 million, compared to $9.6 million in fiscal 1999. Excluding non-recurring items, fourth quarter net income from continuing operations was $2.1 million for fiscal 2000 and $442 thousand for fiscal 1999 and 2000 diluted earnings per share of $0.26 as compared to $0.09 for the prior year. Including non-recurring items, fiscal 2000 fourth quarter had a net loss of $6.1 million or $0.84 per share diluted and fiscal 1999 fourth quarter had net income of $2.6 million or $0.52 per share diluted. Reference is made to the attached tables for further information Backlog as of July 31, 2000 was $50.5 million compared to $38.6 million a year earlier. Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. 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 CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. observed that "the results for fiscal 2000 truly speak for themselves. Our telecommunications segment was our star performer and the EF Data acquisition has significantly heightened our expectations for this core segment." Mr. Kornberg continued: "We are intensely focused on aggressively executing our strategic plan, which calls for an expansion of our broad line of telecommunications and amplifier product offerings, and the commercial development of our 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. business, to the extent appropriate, against the background of future calls for deliveries under our contract with the U. S. Army." Mr. Kornberg concluded: "Comtech has had a remarkable year. Our core business has been consistently reporting strong growth for over five years. This year we've we've Contraction of we have. we've have posted record revenues and this month we were named one of the 200 Best Small Companies in America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. by Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes Magazine in recognition of our strong revenue and EPS growth as well as our strong return on equity. Both internal growth and acquisitions have been sharing the spotlight Spotlight can refer to at least three types of lighting:
Comtech Telecommunications Corp. 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 microwave, electromagnetic wave having a frequency range from 1,000 megahertz (MHz) to 300,000 MHz, corresponding to a wavelength range from 300 mm (about 12 in.) to 1 mm (about 0.04 in.). Like light waves, microwaves travel essentially in straight lines. 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 Tuesday Tuesday: see week. , October October: see month. 24, 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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 cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. 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 Fiscal Year Ended
July 31 (1) July 31 (1)
-----------------------------------------------
2000 1999 2000 1999
Net sales $ 25,494 9,621 $ 66,444 37,886
Costs of sales 16,862 6,724 45,942 26,405
Gross profit 8,632 2,897 20,502 11,481
Operating expenses:
Selling, general and
administrative 4,747 1,679 12,058 6,554
Research and development 1,033 515 2,644 2,022
In-process research and
development 10,218 -- 10,218 --
Amortization of intangibles 160 23 230 78
Total operating expenses 16,158 2,217 25,150 8,654
Operating income (loss)
from continuing
operations (EBIT) (7,526) 680 (4,648) 2,827
Other (income) expense:
Interest expense 282 48 381 204
Interest income (876) (21) (1,511) (65)
Other 201 (27) 201 (39)
Income (loss) from
continuing operations before
provision (benefit)
for income taxes (7,133) 680 (3,719) 2,727
Provision (benefit)
for income taxes (1,161) (2,698) 85 (3,754)
Income (loss) from
continuing operations (5,972) 3,378 (3,804) 6,481
Loss from operations of
discontinued segment (net
of applicable taxes) (137) (779) (137) (1,216)
Net income (loss) $ (6,109) 2,599 $(3,941) 5,265
================================================
Basic income (loss)
per share:
Income (loss) from
continuing operations $ (0.82) 0.78 $ (0.67) 1.56
Loss from operations
of discontinued segment (0.02) (0.18) (0.02) (0.29)
Basic income (loss)
per share $ (0.84) 0.60 $ (0.69) 1.27
Diluted income (loss)
per share:
Income (loss) from
continuing operations $ (0.82) 0.68 $ (0.67) 1.42
Loss from operations
of discontinued segment (0.02) (0.16) (0.02) (0.27)
Diluted income (loss)
per share $ (0.84) 0.52 $ (0.69) 1.15
===============================================
Weighted average
number of common shares
outstanding-basic
computation 7,265,000 4,330,000 5,663,000 4,143,000
Potential dilutive
common shares -- 623,000 -- 430,000
Weighted average number
of common and common
equivalent shares
outstanding assuming dilution-
diluted computation 7,265,000 4,953,000 5,663,000 4,573,000
================================================
EBITDA (2) $ 3,846 1,012 $ 7,955 4,337
=================================================
(1) In thousands of dollars except for earnings per share and shares
outstanding.
(2) Earnings from continuing operations before interest, taxes,
depreciation and amortization and non-recurring items.
THE FOLLOWING PRO-FORMA SUPPLEMENTAL INFORMATION EXCLUDES
NON-RECURRING ITEMS, DISCONTINUED OPERATIONS AND ASSUMES A STATUTORY
EFFECTIVE TAX RATE:
Three Months Ended Fiscal Year Ended
July 31 July 31
2000 1999 2000 1999
Net income excluding
non-recurring items $ 2,074 442 $ 4,242 1,773
Basic net income per
share excluding
non-recurring
items 0.29 0.10 0.75 0.43
Diluted net income =================================================
per share excluding
non-recurring items 0.26 0.09 0.68 0.39
=================================================
COMTECH TELECOMMUNICATIONS CORP.
Consolidated Balance Sheets
(Audited)
July 31 (1)
-----------------------------
Assets 2000 1999
---- ----
Current assets:
Cash and cash equivalents $ 12,587 5,896
Marketable investment securities 18,634 --
Accounts receivable, less
allowance for doubtful accounts
of $806,000 in 2000
and $145,000 in 1999 24,204 5,152
Other receivables 9,038 --
Inventories, net 26,170 7,879
Prepaid expenses and
other current assets 583 138
Deferred tax asset - current 3,125 1,658
------------ -------------
Total current assets 94,341 20,723
Property, plant and equipment, net 10,738 4,310
Intangible assets, net of accumulated
amortization of $308,000 in 2000
and $78,000 in 1999 17,669 1,623
Other assets 468 274
Deferred tax asset - non current 2,815 2,917
------------- ------------
Total assets $ 126,031 29,847
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Current installments
of long-term debt $ 2,100 --
Current installments of capital
lease obligations (including
payable to related party of
$347,000 in 2000 and
$316,000 in 1999) 608 605
Accounts payable 11,260 3,763
Accrued expenses and other
current liabilities 13,657 5,831
Income tax payable 1,449 195
Net liabilities of discontinued operation -- 137
------------ -------------
Total current liabilities 29,074 10,531
Capital lease obligations, less current
installments (including payable
to related party of $154,000 in 2000
and $501,000 in 1999) 908 959
Long-term debt, less current
installments 37,900 --
Other long-term liabilities 367 --
------------ -------------
Total liabilities 68,249 11,490
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 7,349,176 shares
in 2000 and 4,471,368 shares in 1999 735 447
Additional paid-in capital 66,740 23,801
Accumulated other
comprehensive income (113) --
Accumulated deficit (8,687) (4,746)
------------ -------------
58,675 19,502
Less:
Treasury stock (82,500 shares
in 2000 and 1999) (184) (184)
Deferred compensation (709) (961)
------------ -------------
Total stockholders' equity 57,782 18,357
------------ -------------
Total liabilities and $ 126,031 29,847
stockholders' equity
============ =============
(1) In thousands of dollars
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