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Comtech Telecommunications Posts Strong Gains In Second Quarter Results For Fiscal 2001

March 7, 2001 at 12:00 AM EST
Comtech Telecommunications Posts Strong Gains In Second Quarter Results For Fiscal 2001

  • Revenues And Net Earnings Up 141% And 183% Respectively
  • EPS Increase By 85% Despite 51% Increase In Shares Outstanding
  • Record Results Expected For Fiscal Year As Whole

MELVILLE, NY, March 7, 2001 - Comtech Telecommunications Corp. (Nasdaq: CMTL) today reported net income of $1.9 million in the second fiscal quarter ended on January 31, 2001. This is an increase of 183 percent over net income of $662,000 in the second quarter of fiscal year 2000.

Fully diluted per-share earnings were $0.24 in the second quarter of fiscal 2001, compared with $0.13 per share a year earlier. This 85 percent gain was achieved despite an increase in the number of diluted shares outstanding to 7,855,000 on January 31 of this year from 5,214,000 a year earlier, primarily as the result of an offering of shares in February 2000.

Earnings from operations were $3.2 million in the second quarter of this year, up 211 percent from the year-earlier total of $1.0 million. Sales rose 141 percent, from $13.7 million in the second quarter of fiscal 2000 to $33.1 million in the same period of the current year.

In the six months ended on January 31 of this year, Comtech had net income of $3.9 million, or $0.49 per share fully diluted, income from continuing operations of $6.8 million, and sales of $73.0 million. Compared to the first half of fiscal 2000, these totals represent gains of 224 percent in net income, 113 percent in earnings per diluted share, 256 percent in income from continuing operations, and 187 percent in revenues.

As of January 31 our backlog was $36 million compared to the year earlier total of $30.8 million.

See attached tables for additional detail about financial results.

Fred Kornberg, President and Chief Executive Officer, said "this fiscal year's sales and earnings gains have been driven primarily by Comtech's telecommunications transmission segment enhanced through last year's year-end EF Data acquisition."

"Our RF microwave amplifier segment, which has been faced with sluggish market conditions for some time now, posted revenues well above its year-earlier total, and continues to be important to the future of the company. As we announced on March 5, 2001 we have agreed to acquire the commercial RF microwave amplifier product line of MPD Technologies, Inc. This acquisition represents an exciting expansion of our RF microwave amplifier operation, specifically in the satellite and medical areas. We expect revenues from our RF microwave amplifier products to more than double in our next fiscal year. Closing is expected to take place at the end of next month."

"Our contract with the U.S. Army for mobile data communications services continues to be an increasingly important, high-potential part of our business," Mr. Kornberg said. "Since inception we have received approximately $7.1 million in orders, and we expect to receive additional orders of approximately $10 million from available funding during the second half of this fiscal year."

"We have completed delivery of our initial orders to equip approximately 500 U. S. Army trucks with our Movement Tracking System (MTS), and we hope to secure our first commercial order during the second half of this fiscal year."

"Overall, we're making excellent progress in the execution of our strategy," Mr. Kornberg said "We expect the year's record revenues to be in the neighborhood of $140 million with record earnings per share, fully diluted, to exceed $0.85."

Comtech Telecommunications Corp. (www.comtechtel.com) (631-777-8900) is an innovative and increasingly significant 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 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, and other terrestrial wireless and cellular 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 11:00 AM EDT Wednesday, March 7, 2001. 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 contained herein 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. Included among the factors which might cause such results to differ are: among others, the Company's mobile data communications business being in a developmental stage; our inability to keep pace with rapid technological changes; the highly competitive nature of our markets; our dependence on international sales; and other risk factors detailed in the company's form 10-K and other cautionary statements contained in the Company's Securities and Exchange Commission filings.