October 3, 2013 -- Comtech Telecommunications Corp. (NASDAQ:CMTL) today reported its operating results for the fourth quarter and fiscal year ended July 31, 2013.
Net sales for the fourth quarter and full year of fiscal 2013 were $84.4 million and $319.8 million, respectively, as compared to $112.8 million and $425.1 million for the same periods in fiscal 2012. The fourth quarter and full year decrease reflects lower net sales in all of the Company’s operating segments, most notably its mobile data communications segment.
The Company reported GAAP diluted EPS of $0.28 and $0.97 for the fourth quarter and full fiscal year ended July 31, 2013, respectively, as compared to $0.38 and $1.42 for the comparative periods in fiscal 2012.
The Company also announced initial financial guidance for its July 31, 2014 fiscal year. The Company projects that sales for fiscal 2014 will be between $320.0 million and $340.0 million. GAAP diluted EPS is expected to be between $1.07 and $1.19. Adjusted EBITDA for fiscal 2014 is expected to be in the range of $53.0 million to $57.0 million.In commenting on the Company's fiscal 2013 performance and fiscal 2014 business outlook, Fred Kornberg, President and Chief Executive Officer, stated, “Fiscal 2013 ended on a positive note. The fourth quarter was the highest quarter of bookings during the year and we ended the year with solid backlog. As we look to fiscal 2014, we have seen signs of stabilization in certain of our end-markets and believe that we will achieve modest sales and operating income growth. Most importantly, we believe we are well-positioned for further growth when global business conditions meaningfully improve.” Selected Fiscal 2013 Fourth Quarter and Full Year Financial Metrics and Other Items
- Backlog as of July 31, 2013 was $189.7 million compared to $153.9 million as of July 31, 2012.
- Total bookings for the three and twelve months ended July 31, 2013 were $144.0 million and $355.6 million, respectively, compared to $129.3 million and $434.0 million for the three and twelve months ended July 31, 2012, respectively.
- Adjusted EBITDA was $14.0 million and $52.2 million for the three and twelve months ended July 31, 2013, respectively, as compared to $21.6 million and $76.2 million for the three and twelve months ended July 31, 2012, respectively. Adjusted EBITDA is a Non-GAAP financial measure and is defined in the below table.
- The Company's effective income tax rate in the fourth quarter of fiscal 2013 was 36.1%, which includes a net discrete tax expense of less than $0.1 million. The Company's effective income tax rate of 35.2% for the twelve months ended July 31, 2013 reflects a net discrete tax benefit of $0.2 million. The Company's effective income tax rate, excluding discrete tax items in fiscal 2013, was 36.0% and this rate is expected to increase to approximately 36.5% in fiscal 2014.
- At July 31, 2013, the Company had $356.6 million of cash and cash equivalents which does not reflect the quarterly dividend payment of $4.5 million that was paid on August 20, 2013.
- During the three months ended July 31, 2013, the Company repurchased 104,149 shares of its common stock at an aggregate cost of approximately $2.7 million (including transaction costs). Since establishing the Company’s first repurchase program on September 23, 2010, the Company has repurchased a total of 12,397,564 shares of common stock for approximately $365.9 million (including transaction costs). The Company can make additional repurchases of up to $34.3 million pursuant to its existing $50.0 million stock repurchase program.
- The Company's 3.0% convertible senior notes are reflected as a current liability in its consolidated balance sheet at July 31, 2013, as it is possible that the holders of the notes may require the Company to repurchase some or all of the outstanding notes on May 1, 2014.
- In October 2013 (the first quarter of the Company's fiscal 2014) the Company sold certain of its Sensor Enabled Notification System ("SENS") technology and products, including certain intellectual property, to one of its customers for approximately $2.0 million.
- Additional information about the Company’s updated fiscal 2014 guidance is included in the Company’s fourth quarter investor presentation which is located on the Company’s website at www.comtechtel.com.
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