Comtech Telecommunications Corp. Announces $150.0 Million Cash Redemption and $50.0 Million Common Stock Conversion of Its 3.0% Convertible Senior Notes
MELVILLE, N.Y.--(BUSINESS WIRE)--
May 6, 2014--Comtech Telecommunications Corp. (NASDAQ: CMTL) announced
that, as of May 5, 2014, none of its 3.0% Convertible Senior Notes due
2029 (the "Notes") remain outstanding. The Company utilized
approximately $150.0 million of its cash and cash equivalents to redeem
the majority of the Notes, and approximately $50.0 million principal
amount of the Notes were converted into 1,570,904 shares of the
Company's common stock.
As a result of the redemption and partial conversion, as of May 6, 2014,
the Company has no long-term debt and annual interest expense will be
reduced by $6.0 million. The Company expects to continue to repurchase
shares of its common stock pursuant to its stock repurchase program. All
of the cash payments and the substantial majority of conversions into
common stock took place in May 2014 (the Company's fourth quarter). As
of the end of its fiscal quarter ended January 31, 2014, the Company had
$318.0 million of cash and cash equivalents and 15,641,947 shares of
common stock outstanding.
Solely for the purpose of giving effect to the additional shares
outstanding as a result of the conversion of $50.0 million principal
amount of the Notes into shares of common stock, the Company's diluted
earnings per share guidance, issued on March 6, 2014, is reduced by
$0.02. Consistent with its normal practice, the Company will reflect any
other updates for business activities or events occurring after March 6,
2014, including any stock repurchases it has and will continue to make,
when it refreshes its fiscal year guidance in June 2014 in connection
with the release of its results for the third fiscal quarter ended April
30, 2014.
Comtech Telecommunications Corp. designs, develops, produces and markets
innovative products, systems and services for advanced communications
solutions. The Company believes many of its solutions play a vital role
in providing or enhancing communication capabilities when terrestrial
communications infrastructure is unavailable, inefficient or too
expensive. The Company conducts business through three complementary
segments: telecommunications transmission, RF microwave amplifiers and
mobile data communications. The Company sells products to a diverse
customer base in the global commercial and government communications
markets. The Company believes it is a market leader in the market
segments that it serves.
Certain information in this press release contains statements 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. Any
forward-looking information in this press release is qualified in its
entirety by the risks and uncertainties described in such Securities and
Exchange Commission filings.
PCMTL
Media: Michael D. Porcelain, Senior Vice President and Chief
Financial Officer 631-962-7000 info@comtechtel.com