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