Comtech Telecommunications Corp. (NASDAQ: CMTL) has reported its operating results for the first fiscal quarter ended October 31, 2019, the company said.
Net sales for the first quarter of fiscal 2020 were USD 170.3 million as compared to the USD 160.8 million achieved during the first quarter of fiscal 2019, representing an increase of USD 9.5 million, or 5.9%.
Bookings during the first quarter of fiscal 2020 were USD 135.6 million, with a company-wide book-to-bill ratio of 0.80. Backlog as of October 31, 2019 was USD 648.3 million. When adding Comtech´s backlog and the total unfunded value of certain multi-year contracts that Comtech has received and for which it expects future orders, its revenue visibility approximates USD 1.0 billion.
In October 2019, Comtech announced that the US Army awarded it a contract with a USD 98.6 million ceiling to provide global field support services for military satellite communication (“SATCOM”) terminals around the world. The field support contract covers diverse engineering and technical skills to support these SATCOM terminals, including logistics, help desk, network engineering, security engineering, RF and satellite system engineering and support. As of the end of Comtech´s first quarter of fiscal 2020, the contract has been funded at USD 24.4 million with additional funding expected to occur across the twelve-month performance period plus a possible six-month extension period.
In November 2019, the US government announced that Comtech´s teaming partner on a US Marine Corps troposcatter opportunity was awarded a 10-year USD 325.0 million “IDIQ” contract to provide 172 next-generation troposcatter systems and related services. The teaming partner announced that it intends to subcontract the manufacture and delivery of these troposcatter systems to Comtech and the company is currently negotiating contract terms and expects its initial order soon.
In November 2019, Comtech announced that it entered into an agreement to acquire UHP Networks Inc. and its sister company (together, “UHP”), a provider of innovative and disruptive satellite ground station solutions, for a purchase price of approximately USD 40.0 million. The transaction is subject to customary closing conditions and is expected to occur late in the second half of Comtech´s fiscal 2020.
During the first quarter of fiscal 2020, Comtech´s operating income was impacted by USD 2.4 million of acquisition plan expenses and USD 0.2 million of estimated contract settlement costs.
Excluding a USD 0.6 million net discrete tax benefit primarily related to stock based awards settled during the quarter, Comtech´s effective tax rate for the first quarter of fiscal 2020 was 23.0%.
Comtech Telecommunications designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The company sells products to a diverse customer base in the global commercial and government communications markets.
