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Comtech Telecommunications Corp. Announces Record Results For Fiscal Year 2001

Comtech Telecommunications Corp. Announces Record Results For Fiscal Year 2001 Melville, New York - October 16, 2001 - COMTECH TELECOMMUNICATIONS CORP. (NASDAQ: CMTL), today reported that revenues for the fiscal year ended July 31, 2001 increased by 105% from $66.4 million to $135.9 million and income from continuing operations reached $6.7 million, or $0.85 per diluted share, compared to a loss from continuing operations in fiscal 2000 of $3.8 million. The fiscal 2000 loss amount includes certain non-recurring charges aggregating $10.4 million which related to the acquisition of EF Data in July 2000. Fiscal 2000 income from continuing operations would have been $4.2 million, or $0.68 per diluted share, excluding such charges net of the related tax effect.

Revenues for the fourth quarter of fiscal 2001 were $30.7 million, up 20% compared to $25.5 million in fiscal 2000. Fourth quarter income from continuing operations was $1.3 million, or $0.16 per diluted share, for fiscal 2001 as compared to a loss from continuing operations for the fourth quarter in fiscal 2000 of $6.0 million, or $0.82 per diluted share. Fiscal 2000 fourth quarter income from continuing operations would have been $2.1 million, or $0.26 per diluted share, after adjusting for the non-recurring charges discussed above.

Reference is made to the attached tables for further information.

Bookings for the Company's products continued to exhibit strong growth, with funded orders increasing to $135.5 million compared to $78.3 million last year.

Backlog as of July 31, 2001 was $50.1 million compared to $50.5 million a year earlier. Backlog and bookings include approximately $16 million of contracts from our acquisition of the MPD Technologies amplifier product lines.

Fred Kornberg, President and CEO observed that "fiscal 2001 was yet another record breaking year for Comtech. Our financial performance climbed to record levels by every important measure. Both internal growth and acquisitions have been sharing the spotlight, and we expect this to continue. Our telecommunications transmission segment was again our star performer as a direct result of our July 2000 purchase and successful integration of the satellite communications business of EF Data."

Mr. Kornberg continued: "Even without our acquisition, however, our core businesses achieved record level revenues. This is no small achievement. It is in fact clear evidence of Comtech's fundamental strength, especially when measured against the difficulties that hit many telecommunications companies during the past year. Our fourth quarter results were adversely impacted by the economic downturn which has been firmly in place since the third quarter of fiscal 2001. However, we have remained profitable during this difficult economic environment."

Mr. Kornberg concluded: "Our core business has been consistently reporting strong growth for over five years. This year we again posted record revenues and profits and, for the second year in a row, 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."

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 11:30 AM (EDT) Tuesday, October 16, 2001. 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 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.