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Comtech Telecommunications Corp. Announces First Quarter Results For Fiscal Year 2002

December 13, 2001 at 12:00 AM EST
Comtech Telecommunications Corp. Announces First Quarter Results For Fiscal Year 2002

Melville, New York - December 13, 2001 - Comtech Telecommunications Corp. (Nasdaq: CMTL), today reported its results for the three months ended October 31, 2001. Net sales for the three months ended October 31, 2001 were $31.0 million compared to $39.8 million for the three months ended October 31, 2000. Sales for the three months ended October 31, 2001 were impacted by the current softness in the telecommunications market. For sequential comparison purposes, sales for the three months ended July 31, 2001 were $30.7 million.

Net income was $.9 million and $2.0 million for the three month periods ended October 31, 2001 and 2000, respectively. The decrease in net income was driven by the reduction in sales volume.

Backlog as of October 31, 2001 was $43.2 million compared to $44.8 million last year and $50.1 million as of July 31, 2001.

Fred Kornberg, President and CEO, observed that "we were able to maintain profitability and positive operating cash flow during the first quarter of fiscal 2002. This is no small accomplishment in light of the extremely challenging economic environment we are operating in."

Mr. Kornberg added: "All three of our business segments were profitable. We also continued our research and development spending despite the softness in sales to ensure that we are well-positioned when economic conditions improve."

Mr. Kornberg concluded: "We believe that our ability to maintain profitability in this difficult market differentiates us from many other telecommunications companies and is testament to our fundamental strength. We are confident that our strong balance sheet, our leadership position in our core technologies and our continued investment in research and development are a solid foundation for sustained growth in the markets we serve as economic conditions improve."

The Company has scheduled an investor conference call for 11:30 AM (EDT) Thursday, December 13, 2001. Investors and the public are invited to access a live webcast of the conference call from the news section of the this web site. Go to webcast. 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 a developmental 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 the mobile data communications industry;
  • 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.

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 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, terrestrial line of sight and other wireless communications systems. More than 275 distinct Comtech products are in service in more than 100 countries. For further information, please see corporate contacts listed above.