Comtech Telecommunications Corp. Announces Results for the First Quarter of Fiscal 2007.MELVILLE, N.Y. -- Comtech Telecommunications 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 its operating results for the three months ended October 31, 2006. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter of fiscal 2007 were $97.1 million compared to $106.6 million in the first quarter of fiscal 2006, reflecting growth in the telecommunications transmission segment offset by lower sales, as anticipated, in the 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. and RF microwave amplifiers segments. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $10.8 million, or $0.41 per diluted share, for the three months ended October 31, 2006 compared to $11.5 million, or $0.43 per diluted share, for the three months ended October 31, 2005. Non-GAAP net income, which excludes the amortization of stock-based compensation expense, was $12.1 million, or $0.45 per diluted share, for the three months ended October 31, 2006 as compared to Non-GAAP net income of $12.5 million, or $0.47 per diluted share, for the three months ended October 31, 2005. In commenting on the Company's performance during the first quarter of fiscal 2007, Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "We are very pleased with our first quarter results which are expected to serve as the foundation for another record year in fiscal 2007 on our top and bottom lines." Mr. Kornberg added, "Average quarterly sales for the Company are expected to increase for the remainder of fiscal 2007 as a result of our anticipated ongoing support of Movement Tracking System program activities and as deliveries occur on recently received orders, including our contract to upgrade the U.S. D.o.D.'s AN/TRC-170 digital troposcatter terminals." Selected First Quarter Fiscal 2007 Financial Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. and Other Items * Bookings for the first quarter of fiscal 2007 were $121.4 million compared to $110.1 million in the first quarter of fiscal 2006. Backlog as of October 31, 2006 was a record $210.4 million compared to $186.0 million as of July 31, 2006. * Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
* Cash used in operating activities for the first quarter of fiscal 2007 was $3.6 million compared to cash provided by operating activities of $7.2 million for the first quarter of fiscal 2006, reflecting a significant increase in inventory that is currently anticipated to be delivered to our customers (primarily the U.S. government) throughout fiscal 2007, as well as the timing of payments for accounts payable and certain accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. that occurred in the first quarter of fiscal 2007. * Fiscal 2007 first quarter net sales and gross profit were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by $1.2 million and $1.1 million, respectively, due to a gross profit adjustment to the 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. contract in our mobile data communications segment. The adjustment is more fully described in our Form 10-Q Form 10-Q See 10-Q. filed earlier today. * The Company completed the acquisition of certain assets and assumption of certain liabilities of Insite Consulting, Inc. ("Insite") and the consolidation of Comtech Tolt Technologies, Inc. ("Tolt"). Sales relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Insite's geoOps(TM) Enterprise Location Monitoring software and Tolt's turnkey employee mobility solution products were insignificant during the first quarter of fiscal 2007. * As disclosed in our Form 10-Q filed earlier today, the Company has added a risk factor relating to a notification it received from the Company's auditors, KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen LLP LLP - Lower Layer Protocol , concerning KPMG's independence with respect to the Company. Conference Call The Company has scheduled an investor conference call for 8:30 AM (ET) on Tuesday, December 5, 2006. Investors and the public are invited to access a live webcast of the conference call from the news section of the Comtech web site at www.comtechtel.com. Alternatively, investors can access the conference call by dialing (800) 540-0559 (domestic) or (785) 832-1508 (international) and using the conference I.D. of "Comtech." A replay of the conference call will be available for seven days by dialing (402) 220-6933. In addition, an updated investor presentation, including earnings guidance, will be available on our web site shortly after the conference call. About Comtech Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company believes many of its solutions play a vital role in providing or enhancing communication capabilities when terrestrial communications infrastructure is unavailable or ineffective. The Company conducts business through three complementary segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. The Company sells products to a diverse customer base in the global commercial and government communications markets. The Company believes it is a market leader in the market segments that it serves. Cautionary Statement Regarding 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. Certain information in this press release contains forward-looking statements, including but not limited to, information relating to the Company's future performance and financial condition, plans and objectives of the Company's management and the Company's assumptions regarding such future performance, financial condition, plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under the Company's control which may cause actual results, future performance and financial condition, and achievement of plans and objectives of the Company's management to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include the timing of receipt of, and the Company's performance on, new orders that can cause significant fluctuations in net sales and operating results, the timing and funding of government contracts, adjustments to gross profits on long-term contracts, risks associated with international sales, rapid technological change, evolving industry standards, frequent new product announcements and enhancements, changing customer demands, changes in prevailing economic and political conditions, and other factors described in the Company's filings with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] ECMTL |
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