March 6, 2014--Comtech Telecommunications Corp. (NASDAQ:CMTL) today reported its operating results for the three and six months ended January 31, 2014.
Net sales for the second quarter of fiscal 2014 were $85.5 million compared to $74.6 million for the second quarter of fiscal 2013. The period-over-period increase reflects higher sales in the Company's telecommunications transmission and RF microwave amplifiers segments, partially offset by lower sales in its mobile data communications segment. GAAP net income was $6.0 million, or $0.32 per diluted share, for the second quarter of fiscal 2014 as compared to $2.4 million, or $0.14 per diluted share, for the second quarter of fiscal 2013.
Net sales for the six months ended January 31, 2014 were $168.9 million compared to $165.5 million for the six months ended January 31, 2013. GAAP net income was $11.3 million, or $0.60 per diluted share, for the six months ended January 31, 2014 as compared to $9.8 million, or $0.51 per diluted share, for the six months ended January 31, 2013.
Based on the Company's year-to-date results and anticipated second half performance, the Company is maintaining its fiscal 2014 revenue guidance, which is expected to range from $325.0 million to $345.0 million, and its adjusted EBITDA guidance, which is expected to be in the range of $55.0 million to $59.0 million. As a result of stock repurchases, the Company is increasing its GAAP diluted earnings per share guidance to a range of $1.14 to $1.26.In commenting on the Company's performance and updated fiscal 2014 business outlook, Fred Kornberg, President and Chief Executive Officer, stated, “Although market conditions are difficult, we are pleased with our solid financial performance through the second quarter of fiscal 2014." Selected Fiscal 2014 Second Quarter Financial Metrics and Other Items
- Backlog as of January 31, 2014 was $168.0 million compared to $182.8 million as of October 31, 2013.
- Total bookings for the three and six months ended January 31, 2014 were $70.7 million and $147.2 million, respectively, compared to $67.7 million and $138.0 million for the three and six months ended January 31, 2013, respectively.
- Adjusted EBITDA was $15.5 million and $29.8 million for the three and six months ended January 31, 2014, respectively, as compared to $10.1 million and $28.6 million for the three and six months ended January 31, 2013, respectively. Adjusted EBITDA is a Non-GAAP financial measure and is defined in the below table.
- The Company's effective income tax rate for the three months ended January 31, 2014 was 36.4%. The Company’s effective income tax rate for the twelve months ending July 31, 2014 is expected to approximate 36.5%, excluding any discrete tax adjustments.
- At January 31, 2014, the Company had $318.0 million of cash and cash equivalents.
- During the three months ended January 31, 2014, the Company repurchased 811,239 shares of its common stock in open-market transactions with an average price per share of $31.46 and at an aggregate cost of $25.5 million (including transaction costs). Since establishing the Company’s first repurchase program on September 23, 2010, the Company has repurchased a total of 13,684,892 shares of common stock for approximately $406.1 million (including transaction costs), including 351,336 shares of common stock at an aggregate cost of approximately $11.0 million (including transaction costs) repurchased during the period February 1, 2014 through March 5, 2014. The Company can make additional repurchases of up to approximately $44.0 million pursuant to its existing $100.0 million stock repurchase program.
- GAAP diluted earnings per share guidance for fiscal 2014 assumes that the Company's 3.0% convertible senior notes will be redeemed or repurchased by the Company for cash in May 2014 (the Company's fourth quarter of fiscal 2014). If the 3.0% convertible senior notes are converted into common stock in May 2014, the Company's GAAP diluted earnings per share guidance for fiscal 2014 would be reduced by approximately $0.08 to reflect the issuance of additional shares of common stock. The Company's 3.0% convertible senior notes are reflected as a current liability in its condensed consolidated balance sheet at January 31, 2014.
- Additional information about the Company’s updated fiscal 2014 guidance is included in the Company’s second quarter investor presentation which is located on the Company’s website at www.comtechtel.com.
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