NASDAQ$CMTL

Comtech Telecommunications Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported operating results for the first fiscal quarter ended October 31, 2020 and updated financial targets for fiscal 2021.

Comtech Telecommunications Corp. reported consolidated net sales of $135.2 million and Adjusted EBITDA of $14.3 million for the first quarter of fiscal 2021, exceeding expectations. The company achieved a book-to-bill ratio of 0.91 with bookings of $123.2 million and faced significant acquisition plan expenses, including costs related to the Gilat merger termination.

  • Consolidated net sales reached $135.2 million, and Adjusted EBITDA was $14.3 million, surpassing initial expectations.
  • The company achieved a book-to-bill ratio of 0.91 with bookings totaling $123.2 million.
  • Backlog as of October 31, 2020, was $605.5 million, with revenue visibility approximating $1.0 billion when including unfunded multi-year contracts.
  • A GAAP operating loss of $85.7 million and a GAAP net loss of $85.8 million, or $3.39 per diluted share, were reported due to acquisition plan expenses.

Headline financials

Total Revenue

$135M

Previous: $170M-20.6%
EPS (adj)

$0.15

Previous: $0.32-53.1%
Book-to-Bill Ratio

0.91

No prior period
Capital Expenditures

-$890K

Previous: -$1.25M+28.8%
Free Cash Flow

-$86.7M

Previous: $5.14M-1788.0%
Net Income

-$85.8M

Previous: $6.39M-1443.8%
Operating Income

-$85.7M

Previous: $9.26M-1025.7%
Gross Profit

$50.2M

Previous: $63.6M-21.0%
Cash & Equivalents

$32.5M

Previous: $46.9M-30.7%
Total Assets

$919M

Previous: $931M-1.3%

Revenue & EPS history

Comtech · Revenue · Quarterly

$135M

Q1 2021-20.6%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Comtech · $106M total across 2 segments · Q3 2026

  • Allerium
    $55.7M
  • Satellite and Space Communications
    $50.3M

Forward guidance

Comtech expects fiscal 2021 consolidated net sales to be in the range of $610.0 million to $630.0 million and Adjusted EBITDA to be in the range of $74.0 million to $76.0 million, excluding the impact of the pending UHP acquisition.

Tailwinds

  • Strong demand for public safety technology solutions.
  • Providing 5G virtual mobile location-based technology solutions for two U.S. tier-one mobile network operators.
  • Deliveries to support a critical U.S. Air Force and U.S. Army Anti-jam Modem (“A3M”) program.
  • Similar level of annual sales in its satellite earth station product line as compared to fiscal 2020.
  • Awarded a statewide contract valued at up to $175.1 million to design, deploy, and operate NG-911 services for the Commonwealth of Pennsylvania.

Headwinds

  • The ultimate impact of the COVID-19 pandemic could change financial targets.
  • Acquisition plan expenses remain largely unpredictable.
  • The pandemic's continued impact on global business conditions.
  • Company is not providing any GAAP operating income, GAAP net income or GAAP EPS guidance.
  • Reconciliations to the Non-GAAP forward looking metrics are not available without unreasonable effort and such unavailable reconciling items could significantly impact the Company's financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-3.1%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-3.9%

Avg return

30 days after

32%

21 / 66 earnings

Positive

+75.6%

Q3 2024

Best reaction

-26.9%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-24.5%-25.4%-17.5%
Q1 2026-15.5%-21.3%+51.1%
Q4 2025+7.0%+6.7%+20.7%
Q3 2025+0.0%+14.4%+26.2%
Q2 2025-11.3%-9.4%-36.6%
Q4 2024-24.8%+1.7%-26.6%
Q3 2024+75.6%+67.7%+40.1%
Q2 2024-25.3%-30.1%-56.2%
Q1 2024-26.9%-36.4%-31.8%
Q4 2023+17.8%+17.3%+37.0%
Q3 2023-19.1%-20.6%-23.8%
Q2 2023-15.8%-22.6%-24.8%
Q1 2023+5.4%+3.1%-1.6%
Q4 2022-2.4%+4.2%+5.9%
Q3 2022-24.0%-28.5%-25.9%
Q2 2022-19.3%-19.5%-25.2%
Q1 2022-2.9%-6.8%-6.7%
Q4 2021-13.5%-12.9%+1.1%
Q3 2021-10.4%-12.1%+1.8%
Q2 2021-3.5%-10.4%-13.8%
Q1 2021-14.4%-11.6%+10.5%
Q4 2020-0.2%-0.4%+6.8%
Q3 2020-7.2%+6.6%-13.3%
Q2 2020-15.2%-22.4%-56.8%
Q1 2020-0.5%-3.9%-1.5%
Q4 2019+17.6%+12.3%+6.6%
Q3 2019+17.5%+17.4%+24.0%
Q2 2019-10.0%-14.9%-12.2%
Q1 2019+13.7%+1.5%-2.7%
Q4 2018-5.9%+2.3%-19.0%
Q3 2018-2.0%-4.5%-1.2%
Q2 2018+25.3%+28.2%+23.9%
Q1 2018+6.3%-0.6%+5.3%
Q4 2017-13.5%-4.3%+5.6%
Q3 2017+17.4%+24.0%+23.6%
Q2 2017+24.8%+28.5%+20.6%
Q1 2017-11.9%-4.8%-0.3%
Q4 2016-7.2%-10.0%-24.6%
Q3 2016-10.8%-20.9%-42.3%
Q2 2016+0.0%
Q1 2016-5.7%
Q4 2015-19.4%
Q3 2015-0.4%
Q2 2015-13.1%
Q1 2015-16.0%
Q4 2014-5.7%
Q3 2014+23.3%
Q2 2014+1.4%
Q1 2014+1.9%
Q4 2013+5.8%
Q3 2013+3.5%
Q2 2013-4.9%
Q1 2013-5.8%
Q4 2012-2.7%
Q3 2012+4.5%
Q2 2012+4.2%
Q1 2012-4.4%
Q4 2011+2.0%
Q4 2009+2.0%
Q3 2010-10.8%
Q3 2011-10.8%
Q2 2010-3.5%
Q2 2011-3.5%
Q1 2011-12.1%
Q4 2010-12.1%
Q1 2010-12.1%

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