<< Back

Comtech Telecommunications Corp. Announces Second Quarter Results for Fiscal 2002

March 13, 2002 at 12:00 AM EST
Comtech Telecommunications Corp. Announces Second Quarter Results for Fiscal 2002 Melville, New York --- March 13, 2002 --- COMTECH TELECOMMUNICATIONS CORP. (NASDAQ: CMTL) today reported its results for the three months ended January 31, 2002. Net sales for the three months ended January 31, 2002 were $30.5 million compared to $33.1 million for the three months ended January 31, 2001. Sales for the three months ended January 31, 2002 were impacted by the current softness in the telecommunications market.

Net income was $.1 million and $1.9 million for the three month periods ended January 31, 2002 and 2001, respectively. The decrease in net income was driven primarily by the reduction in sales volume.

Net sales for the six months ended January 31, 2002 were $61.6 million compared to $73.0 million for the six months ended January 31, 2001. Net income was $1.1 million and $3.9 million for the six months ended January 31, 2002 and 2001, respectively.

Backlog as of January 31, 2002 was $49.0 million compared to $43.2 million as of October 31, 2001 and $50.1 million as of July 31, 2001.

Fred Kornberg, President and CEO, observed, "Once again, all three of our business segments were profitable despite the extremely challenging economic environment we are operating in. We also generated very strong cash flow from operations during the quarter."

Mr. Kornberg added, "We have maintained our R&D spending despite the continued softness in sales. This is further evidence of our commitment to the long-term future of the Company through development of new products and enhancement of existing products."

Mr. Kornberg concluded, "Our balance sheet remains very strong. Our next long-term debt payment is not due until December 2003. We also increased our cash position while reducing inventory and accounts receivable during the quarter."

Comtech Telecommunications Corp. (www.comtechtel.com) 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 a.m. Eastern Standard Time on Wednesday, March 13, 2002. 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.