Comtech Telecommunications Announces The Company Expects To Exceed Third Quarter Fiscal 2003 Earnings Guidance
May 15, 2003 at 11:01 AM EDT
MELVILLE, N.Y., May 15, 2003 (BUSINESS WIRE) --
Comtech Telecommunications Corp. (NASDAQ:CMTL) announced today that it expects to exceed its third quarter fiscal 2003 earnings guidance of 25 to 27 cents.
The Company expects to report diluted earnings per share for the third quarter of fiscal 2003 in the range of 40 to 42 cents. Sales for the quarter are expected to approximate $48 million.
Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "The higher than expected earnings were partially the result of greater than anticipated sales of our mobile data communications products in the fiscal 2003 third quarter as a result of the Army's accelerated deployment of this technology in connection with the recent conflict in Iraq. In addition, sales of our satellite earth station products during the quarter were stronger than expected."
Mr. Kornberg added, "Our third quarter results are further evidence that our strategy of establishing market leadership positions in our business segments is translating into strong performance. We are maintaining our fourth quarter fiscal 2003 diluted earnings per share guidance despite the fact that a portion of the revenues we were anticipating in the fourth quarter were accelerated into the third quarter. This results in guidance for the full 2003 fiscal year of $1.01 to $1.05. We will comment further on the fourth quarter of fiscal 2003 during our conference call in June."
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 300 distinct Comtech products are in service in more than 100 countries.
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
-- our backlog being subject to customer cancellation or
-- 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
-- uncertainty whether the Internet will continue to grow in
-- the potential impact of increased competition on prices,
profit margins and market share for the Company's products and
-- 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.
SOURCE: Comtech Telecommunications Corp.
Comtech Telecommunications Corp.
Fred Kornberg / Robert G. Rouse
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