Comtech Telecommunications Corp. Announces Results for Fiscal 2018 Second Quarter and Updates Its Fiscal 2018 Guidance

March 7, 2018– Comtech Telecommunications Corp. (NASDAQ: CMTL) today
reported its operating results for the second fiscal quarter ended
January 31, 2018 and updated its fiscal 2018 guidance.

Fiscal 2018 Second Quarter Highlights

  • Net sales were $133.7 million.
  • Bookings were $210.6 million, with a book-to-bill ratio (a measure
    defined as bookings divided by net sales) of 1.57.
  • Backlog was $567.3 million, which is close to Comtech’s record high.
    Comtech’s backlog does not include the unfunded portions of multi-year
    contracts. As such, the total value of multi-year contracts that
    Comtech has received is substantially higher.
  • Comtech received several strategic contract awards including: (i) a
    $134.0 million award to provide one of the largest wireless carriers
    in the U.S. with enhanced 911 services; (ii) a $123.6 million contract
    to be the sole provider of sustainment support services for the U.S.
    Army’s “SNAP” mobile satellite communications program; and (iii) an
    initial $11.7 million order to provide several thousand of Comtech’s
    next generation MT-2025 mobile satellite transceivers to support the
    U.S. Army’s Blue Force Tracking-2 (“BFT-2”) system.
  • GAAP operating income was $4.9 million and GAAP net income was $15.8
    million, or $0.66 per diluted share.
  • GAAP net income includes a net tax benefit of $14.0 million, or $0.59
    per diluted share (“Tax Gain”), primarily due to the remeasurement of
    deferred tax assets and liabilities as a result of Tax Reform, which
    also resulted in a reduction to Comtech’s fiscal 2018 estimated
    effective tax rate to approximately 27.75%. Excluding the $0.59 per
    diluted share Tax Gain, GAAP net income would have been approximately
    $1.8 million, or $0.07 per diluted share.
  • Adjusted EBITDA was $14.5 million. Adjusted EBITDA is a non-GAAP
    financial measure which is reconciled to the most directly comparable
    GAAP financial measure and is more fully defined in the below table.
  • Cash flows from operating activities were $2.7 million.
  • Cash dividends of $2.4 million were paid to common stockholders.
  • $40.5 million of cash and cash equivalents as of January 31, 2018.

In commenting on Comtech’s performance during the second quarter of
fiscal 2018 and Comtech’s fiscal 2018 guidance, Fred Kornberg, President
and Chief Executive Officer, stated, “I could not be more pleased with
our better than expected second quarter results and the major multi-year
contract awards that we have received to-date. Business momentum remains
strong and shows no signs of slowing down. Given our year-to-date
performance and strong positive business momentum, we are increasing our
2018 fiscal year financial targets and expect that fiscal 2018 will be a
very strong year.”

Updated 2018 Fiscal Year Financial Targets

  • Comtech is increasing its revenue target to a new range of
    approximately $570.0 million to $585.0 million, as compared to a prior
    range of $550.0 million to $575.0 million. Despite the absence of $6.7
    million of BFT-1 intellectual property license fees that Comtech
    earned in fiscal 2017 supporting the U.S. Army’s Blue Force Tracking
    Program, the mid-point of Comtech’s new fiscal 2018 revenue target
    range represents a year-over-year growth rate of close to 5.0%.
  • Comtech is increasing its Adjusted EBITDA target to a new range of
    $72.0 million to $76.0 million, as compared to a prior range of $69.0
    million to $73.0 million. Despite the absence of the $6.7 million of
    BFT-1 intellectual property license fees, the mid-point of the new
    fiscal 2018 Adjusted EBITDA target range represents a year-over-year
    growth rate of close to 5.0%.
  • Comtech’s third quarter consolidated net sales and Adjusted EBITDA are
    expected to be higher than the related amounts achieved in its second
    quarter of fiscal 2018 by approximately 10.0%. Comtech’s consolidated
    GAAP operating income and Adjusted EBITDA, as a percentage of its
    consolidated third quarter fiscal 2018 net sales, are expected to
    approximate 4.0% and 11.0%, respectively, with significant increases
    in each metric in the fourth quarter of fiscal 2018.
  • Comtech is increasing its GAAP diluted EPS target to a new range of
    $1.08 to $1.23, as compared to a prior range of $0.44 to $0.46. This
    new target range includes the benefits of the $0.59 per diluted share
    Tax Gain and better than expected operating performance, partially
    offset by an increase in expected amortization of stock-based
    compensation. GAAP diluted EPS for Comtech’s third quarter of fiscal
    2018 is expected to approximate a range of $0.10 to $0.12 per diluted
    share, which is higher than the $0.07 per diluted share Comtech
    achieved in its second quarter of fiscal 2018 when excluding the $0.59
    per diluted share Tax Gain.
  • In line with its original Business Outlook for Fiscal 2018, Comtech’s
    fourth quarter of fiscal 2018 is expected to be the peak quarter – by
    far – for consolidated net sales, GAAP operating income and Adjusted
  • Comtech’s new estimated effective tax rate of 27.75% reflects seven
    months of benefit related to Tax Reform. Although Comtech continues to
    perform an analysis of Tax Reform and its impact, Comtech’s initial
    assessment is that its effective tax rate in fiscal 2019, before any
    discrete items, will range from 24.5% to 26.0%.
  • If order flow remains strong and Comtech is able to achieve all of its
    fiscal 2018 business goals, it is possible that Comtech’s actual
    fiscal 2018 consolidated net sales, GAAP diluted EPS and Adjusted
    EBITDA could be higher than its targeted amounts.

Additional information about Comtech’s fiscal 2018 guidance is included
in Comtech’s second quarter investor presentation which is located on
Comtech’s website at


Comtech has scheduled an investor conference call for 8:30 AM (ET) on
Thursday, March 8, 2018. Investors and the public are invited to access
a live webcast of the conference call from the Investor Relations
section of the Comtech website at
Alternatively, investors can access the conference call by dialing (888)
632-3389 (domestic), or (785) 424-1673 (international) and using the
conference I.D. “Comtech.” A replay of the conference call will be
available for seven days by dialing (800) 839-2383 or (402) 220-7202. In
addition, an updated investor presentation, including earnings guidance,
is available on Comtech’s website.




Certain information in this press release contains forward-looking
statements, including but not limited to, information relating to the
Company’s future performance and financial condition, plans and
objectives of the Company’s management and the Company’s assumptions
regarding such future performance, financial condition, and plans and
objectives that involve certain significant known and unknown risks and
uncertainties and other factors not under the Company’s control which
may cause its actual results, future performance and financial
condition, and achievement of plans and objectives of the Company’s
management to be materially different from the results, performance or
other expectations implied by these forward-looking statements. These
factors include, among other things: the risk that the Company will be
unsuccessful in implementing a tactical shift in its Government
Solutions segment away from bidding on large commodity service contracts
and toward pursuing contracts for its niche products with higher
margins; the nature and timing of receipt of, and the Company’s
performance on, new or existing orders that can cause significant
fluctuations in net sales and operating results; the timing and funding
of government contracts; adjustments to gross profits on long-term
contracts; risks associated with international sales; rapid
technological change; evolving industry standards; new product
announcements and enhancements, including the risks associated with the
Company’s recent launch of Heights™ Dynamic Network Access Technology
(“HEIGHTS” or “HDNA”); changing customer demands; changes in prevailing
economic and political conditions; changes in the price of oil in global
markets; changes in foreign currency exchange rates; risks associated
with the Company’s and TeleCommunication Systems, Inc.’s (“TCS”) legacy
legal proceedings, customer claims for indemnification and other similar
matters; risks associated with the Company’s obligations under its
Secured Credit Facility, as amended; risks associated with the Company’s
large contracts; the impact of H.R.1, also known as the Tax Cuts and
Jobs Act (“Tax Reform”), which was recently enacted in the U.S.; and
other factors described in this and the Company’s other filings with the
Securities and Exchange Commission.





Three months ended January 31, Six months ended January 31,
2018 2017 2018 2017
売上高 $ 133,731,000 139,028,000

255,300,000 274,814,000
売上原価 82,930,000 85,824,000 156,783,000 169,502,000
売上総利益 50,801,000 53,204,000 98,517,000 105,312,000
販売費及び一般管理費 27,215,000 30,988,000 55,690,000 63,673,000
研究・開発 13,435,000 13,314,000 27,185,000 27,410,000
無形固定資産償却費 5,268,000 6,032,000 10,537,000 12,087,000
知的財産権訴訟の和解 - (9,979,000 ) - (9,979,000 )
45,918,000 40,355,000 93,412,000 93,191,000
営業利益 4,883,000 12,849,000 5,105,000 12,121,000
支払利息 2,519,000 2,852,000 5,107,000 6,177,000
利息(収益)およびその他 (48,000 ) (74,000 ) (9,000 ) (76,000 )
Income before (benefit from) provision for income taxes 2,412,000 10,071,000 7,000 6,020,000
(法人税等調整額(ベネフィット (13,349,000 ) 3,486,000 (14,094,000 ) 1,924,000
当期純利益 $ 15,761,000 6,585,000

14,101,000 4,096,000
ベーシック $ 0.66 0.28

0.59 0.17
希薄化 $ 0.66 0.28

0.59 0.17
加重平均発行済普通株式数-基本的なもの 23,816,000 23,428,000 23,805,000 23,406,000
発行済普通株式数 - 希薄化後
23,953,000 23,445,000 23,942,000 23,427,000
$ 0.10 0.10






January 31, 2018 2017年7月31日
(未監査) (監査済)

現金及び現金同等物 $ 40,472,000 41,844,000
売掛金(純額 117,973,000 124,962,000
棚卸資産(純額 71,707,000 60,603,000
前払い費用およびその他の流動資産 14,915,000 13,635,000
流動資産合計 245,067,000 241,044,000
有形固定資産(純額) 30,122,000 32,847,000
のれん 290,633,000 290,633,000
耐用年数が確定している無形資産(純額) 251,334,000 261,871,000
繰延金融費用(純額 2,635,000 3,065,000
その他の資産(純額 2,860,000 2,603,000
総資産額 $ 822,651,000 832,063,000
買掛金 $ 27,662,000 29,402,000
未払費用およびその他の流動負債 60,585,000 68,610,000
配当金支払額 2,351,000 2,343,000
顧客からの前受金および預り金 24,848,000 25,771,000
一年以内返済予定長期借入金 17,211,000 15,494,000
一年以内返済予定キャピタル・リース債務 1,858,000 2,309,000
支払利息 83,000 282,000
流動負債合計 134,598,000 144,211,000
長期債務の非流動部分(純額 174,225,000 176,228,000
キャピタル・リース債務の非流動部分 885,000 1,771,000
未払法人税等 2,558,000 2,515,000
繰延税金負債(純額 6,088,000 17,306,000
顧客前受金および預り金、非流動 8,385,000 7,227,000
その他の負債 5,291,000 2,655,000
負債合計 332,030,000 351,913,000
優先株式、額面1株につき$.10、発行可能株式数および未発行株式数 2,000,000 株。
発行済み株式数 2,000,000
- -
Common stock, par value $.10 per share; authorized 100,000,000
shares; issued 38,653,430 shares and 38,619,467 shares at January
31, 2018 and July 31, 2017, respectively
3,865,000 3,862,000
追加払込資本 534,224,000 533,001,000
利益剰余金 394,381,000 385,136,000
932,470,000 921,999,000

Treasury stock, at cost (15,033,317 shares at January 31, 2018

and July 31, 2017)

(441,849,000 ) (441,849,000 )
株主資本合計 490,621,000 480,150,000
負債および株主資本合計 $ 822,651,000 832,063,000





投資家の皆様に当社の業績に関する追加情報を提供するため、本プレスリリースには「非 GAAP 型財務情報」が含まれています。
当社は、投資家およびアナリストが当社の業績および他社との比較可能性を評価する際に、調整後 EBITDA を当社の SEC 提出書類に記載された他の情報とともに使用するものと考えています。
これらの指標に影響を与える特定の項目である株式報酬や税金費用の調整、無形資産償却、支払利息などの項目は、まだ発生し ておらず、当社の管理下にはなく、予測することもできません。例えば、株式報酬費用の定量化には

Three months ended January 31, Six months ended January 31, 会計年度
2018 2017 2018 2017 2017
当期純利益 $ 15,761,000 6,585,000 14,101,000 4,096,000 $ 15,827,000
(法人税等調整額(ベネフィット (13,349,000 ) 3,486,000 (14,094,000 ) 1,924,000 9,654,000
利息(収益)およびその他の費用 (48,000 ) (74,000 ) (9,000 ) (76,000 ) (68,000 )
支払利息 2,519,000 2,852,000 5,107,000 6,177,000 11,629,000
株式ベースの報酬の償却 1,080,000 1,019,000 1,827,000 1,989,000 8,506,000
無形固定資産償却費 5,268,000 6,032,000 10,537,000 12,087,000 22,823,000
減価償却費 3,317,000 3,568,000 6,663,000 7,317,000 14,354,000
知的財産権訴訟の和解 - (9,979,000 ) - (9,979,000 ) (12,020,000 )
調整後EBITDA $ 14,548,000 13,489,000 24,132,000 23,535,000 $ 70,705,000


Michael D. Porcelain, Senior Vice President and Chief Financial Officer.
(631) 962-7103
[email protected]


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