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Comtech Telecommunications Corp. Announces First Quarter Results for Fiscal 2003

December 10, 2002 at 12:00 AM EST
Comtech Telecommunications Corp. Announces First Quarter Results for Fiscal 2003 MELVILLE, N.Y., Dec 10, 2002 (BUSINESS WIRE) --

Comtech Telecommunications Corp. (Nasdaq:CMTL) today reported its results for the three months ended October 31, 2002.

Net sales for the three months ended October 31, 2002 were $31.3 million compared to $31.0 million for the three months ended October 31, 2001. For sequential comparison purposes, sales for the three months ended July 31, 2002 were $28.5 million.

Net income was $0.8 million, or 10 cents per diluted share, and $0.9 million, or 11 cents per diluted share, for the three month periods ended October 31, 2002 and 2001, respectively.

Backlog as of October 31, 2002 was $85.5 million compared to $43.2 million last year and $44.1 million as of July 31, 2002.

In commenting on the Company's performance during the first quarter of fiscal 2003, Fred Kornberg, President and CEO, observed that "this was the first quarter in more than a year in which our sales increased over the prior year period. We expect sales to continue to increase as a result of (i) renewed interest in our over-the-horizon microwave product line, including a recently received order for over $42 million, (ii) the ability of our bandwidth efficient turbo product code modems to address the potential satellite bandwidth crunch, and (iii) increased funding in 2003 for our Movement Tracking System contract with the U.S. Army."

Mr. Kornberg added, "We believe that our investment in research and development is paying off and will continue to provide us with technology leadership positions in the key markets we serve."

Mr. Kornberg concluded, "Our diluted earnings per share of 10 cents for the first quarter of fiscal 2003 exceeded our guidance of 6 to 8 cents. We believe that the anticipated increase in sales mentioned above will favorably impact our earnings per share in the second quarter and beyond."

Comtech Telecommunications Corp. is an innovative player in domestic and global high-technology markets. Through its operating units, Comtech pursues opportunities in three interrelated market segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications services. In each of these segments, growth has been 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 line-of-sight and other wireless communications systems. More than 275 distinct Comtech products are in service in more than 100 countries.

The Company has scheduled an investor conference call for 11:30 AM (ET) on Tuesday, December 10, 2002. 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 information in this press release contains forward-looking statements, including but not limited to, information relating to 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 that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company's Securities and Exchange Commission filings identify many such risks and uncertainties, which include the following:

    --  the impact of a continued domestic and foreign economic
        slow-down on the demand for our products and services,
        particularly in the telecommunications industry;
    --  risks associated with our mobile data communications business
        being in an early stage;
    --  our potential inability 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 risks;
    --  our dependence on component availability, subcontractor
        availability and performance by key suppliers;
    --  the highly competitive nature of our markets;
    --  our dependence on international sales;
    --  the adverse effect on demand for our products and services
        that would be caused by a decrease in the value of foreign
        currencies relative to the U.S. dollar;
    --  the potential entry of new competitors in all of our segments;
    --  uncertainty whether the satellite communications industry or
        infrastructure will continue to develop and the market will
        grow;
    --  uncertainty whether the Internet will continue to grow in
        international markets;
    --  the potential impact of increased competition on prices,
        profit margins and market share for the Company's products and
        services;
    --  the availability of satellite capacity on a leased basis
        needed to provide the necessary global coverage for our mobile
        data communications services;
    --  whether we can successfully implement our satellite mobile
        data communications services and achieve recurring revenues
        for such services; and
    --  whether we can successfully combine and assimilate the
        operations of acquired businesses and product lines.