Melville, New York - December 8, 1998 - Comtech Telecommunications Corp. (Nasdaq: CMTL) today reported that for the first quarter ended October 31, 1998, the Company had a net profit of $394,000, or $.15 per share, on sales of $8,735,000. For the same quarter of last year, the Company had a net profit of $104,000, or $.04 per share, on sales of $5,934,000.
Fred Kornberg, President, commented, "we are pleased to report that the net sales for the first quarter increased by more than 47% and net income increased by more than 278% over last year's first quarter. The Company's increased sales and income, reflecting the benefits flowing from Comtech's continuing transition to a product oriented business, were primarily driven by our Comtech PST and Comtech Systems, Inc. operating units partially offset by results of our Comtech Communications Corp. operating unit which continues to experience lower sales from the Pacific Rim area. However, we are continuing to make progress in the execution of our business plan".
The Company previously reported a $42.5 million order received in the first quarter of 1999, calling for shipments of digital over-the-horizon microwave radio terminals during a 30-month period. Apart from that order (of which only $70,000 was shipped during the first quarter), backlog at October 31, 1998 was $10,651,000 compared to $14,873,000 a year earlier and $15,452,000 at July 31, 1998.
Comtech is a broad based manufacturer of state-of-the-art solid state high power amplifiers and high technology satellite and troposcatter telecommunication products and systems for commercial and government applications.
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(Unaudited)
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October 31 |
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Net Sales |
$
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8,735,000
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$
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5,934,000
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|
|
|
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Operating income |
$
|
470,000
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$
|
198,000
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Other income (expense) - net |
(31,000)
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(69,000)
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|
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|
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Income before provision for income taxes |
439,000
|
129,000
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Provision for income taxes |
|
45,000
|
|
25,000
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|
|
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Net income |
$
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394,000
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$
|
104,000
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Net income per share |
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Basic |
$
|
.15
|
$
|
.04
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Diluted |
$
|
.14
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$
|
.04
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Weighted average number of common and common equivalent shares outstanding |
|||||
Basic |
2,671,958
|
2,595,404
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Diluted |
2,902,112
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2,672,907
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CONDENSED CONSOLIDATED BALANCE
SHEET
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Assets |
|||||
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Cash and short-term investments |
$
|
2,949,000
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$
|
2,744,000
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Current assets (other than cash and |
|||||
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short-term investments) |
12,513,000
|
12,343,000
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Property, plan and equipment - net |
4,442,000
|
4,314,000
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Intangible assets |
1,877,000
|
- -
|
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Other assets |
307,000
|
307,000
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|||
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Total assets |
$
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22,088,000
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$
|
19,710,000
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|
|
|
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Liabilities and Stockholders' Equity |
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Currant liabilities |
$
|
7,600,000
|
$
|
6,172,000
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Long-term debt, less current installments |
1,287,000
|
$
|
1,445,000
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Stockholders' equity |
13,201,000
|
12,093,000
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Total liabilities and stockholders' equity |
$
|
22,088,000
|
$
|
19,710,000
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