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Comtech Telecommunications Corp. Announces Record Results For Fiscal Year 2000

Comtech Telecommunications Corp. Announces Record Results For Fiscal Year 2000

  • Revenues up 75%
  • Backlog up 31% Excluding non-recurring items:
  • Net income up 139%
  • EPS up 74%

Melville, New York - October 24, 2000- COMTECH TELECOMMUNICATIONS CORP. (NASDAQ: CMTL), today reported that revenues for the fiscal year ended July 31, 2000 increased by 75% from $37.9 to $66.4 million, and excluding non-recurring items, net income from continuing operations increased by 139% from $1.8 to $4.2 million and diluted earnings per share increased by 74% from $0.39 to $0.68, each reaching record levels.

In connection with the acquisition of EF Data in the last month of fiscal 2000, Comtech incurred non-recurring charges of $10.2 million for acquired in-process R & D and approximately $240 thousand for expenses associated with the integration of facilities and workforce. Reflecting these non-recurring items aggregating approximately $10.4 million, fiscal 2000 had a net loss of $3.9 million or $0.69 per share diluted. Fiscal 1999 net income of $5.3 million and earnings per share of $1.15 diluted, reflected non-recurring items comprising a total $4.6 million net tax benefit due to a net reduction in the Company's valuation reserve for deferred tax assets and a $1.2 million loss due to the discontinuance of the operation of the Company's wireless local loop segment.

Revenues for the fourth quarter of fiscal 2000 were a record $25.5 million, compared to $9.6 million in fiscal 1999. Excluding non-recurring items, fourth quarter net income from continuing operations was $2.1 million for fiscal 2000 and $442 thousand for fiscal 1999 and 2000 diluted earnings per share of $0.26 as compared to $0.09 for the prior year. Including non-recurring items, fiscal 2000 fourth quarter had a net loss of $6.1 million or $0.84 per share diluted and fiscal 1999 fourth quarter had net income of $2.6 million or $0.52 per share diluted.

Reference is made to the attached tables for further information

Backlog as of July 31, 2000 was $50.5 million compared to $38.6 million a year earlier.

Fred Kornberg, President and CEO observed that "the results for fiscal 2000 truly speak for themselves. Our telecommunications segment was our star performer and the EF Data acquisition has significantly heightened our expectations for this core segment." Mr. Kornberg continued: "We are intensely focused on aggressively executing our strategic plan, which calls for an expansion of our broad line of telecommunications and amplifier product offerings, and the commercial development of our mobile data communications business, to the extent appropriate, against the background of future calls for deliveries under our contract with the U. S. Army."

Mr. Kornberg concluded: "Comtech has had a remarkable year. Our core business has been consistently reporting strong growth for over five years. This year we've posted record revenues and this month we were named one of the 200 Best Small Companies in America by Forbes Magazine in recognition of our strong revenue and EPS growth as well as our strong return on equity. Both internal growth and acquisitions have been sharing the spotlight, and we expect this to continue. We believe we have arrived at a new staging platform, a springboard from which to move into the future."

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.

The Company has scheduled an investor conference call for 11:00AM EDT Tuesday, October 24, 2000. Investors and the public are invited to access a live webcast of the conference call from the news section of the Comtech web site, www.comtechtel.com. A replay of the webcast will be available at the same location for 30 days following the conference call.

Certain of the statements contained herein, 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 are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Included among the factors which might cause such results to differ are: the Company's ability 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 risk; the highly competitive nature of our markets; our dependence on component availability, subcontractor availability and performance by key suppliers; our dependence on international sales; our mobile data communications business being in a developmental stage. Additionally, these forward-looking statements are qualified in their entirety by cautionary statements contained in the Company's Securities and Exchange Commission filings.