Comtech's 4Q profit beats expectations

Comtech's 4Q beats expectations, issues solid forecast; shares up after hours

Associated Press

MELVILLE, N.Y. (AP) -- Comtech Telecommunications Corp. shares jumped in extended trading Thursday after the communications company reported a better-than-expected fiscal fourth quarter and a solid full-year forecast.

President and CEO Fred Kornberg said that Comtech ended its fiscal year on a positive note with its highest quarter of bookings for the year, plus a solid backlog. He said the company's end-markets are beginning to stabilize and he expects it will grow when global business conditions meaningfully improve.

Comtech earned $5.2 million, or 28 cents per share, for the quarter that ended July 31. That's down from $7.9 million, or 38 cents per share, earned in the same quarter last year. Analysts polled by FactSet were anticipating earnings of 21 cents per share for the period.

Its revenue fell to $84.4 million from $112.8 million due to lower sales in all of its segments, with notable drops in its mobile data business.

Comtech, based in Melville, N.Y., makes equipment used in satellite and other mobile communications systems. The company has struggled for some time with weaker sales of satellite modems to the federal government.

The company said it expects to earn between $1.07 and $1.19 per share for its 2014 fiscal year on revenue between $320 million and $340 million. Analysts had forecast earnings of $1.04 per share for the year.

Comtech's annual net income fell to $17.8 million, or 97 cents per share, from $32.4 million, or $1.42 per share, last year. Its annual revenue fell to $319.8 million from $425.1 million.

Shares jumped $2.41, or 10 percent, to $26.50 after hours. Its stock fell 26 cents to close regular trading at $24.09.

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