Will the Government’s Financial Support for Cloud Computing Help Investors in the Technology?

 

While the infrastructure bill President Biden is stomping to gather support for is not likely to pass in its current form, it is clear that there will be an infrastructure bill that passes. When a modified bill reaches his desk to sign, it will include projects that the administration believes are important to the country. When we think of infrastructure, we tend to think of roads, bridges, and railways. But this is 2021 and investing in infrastructure also includes improving the three Cs, communication, connectivity, and cloud services.

During the pandemic last year, it became highly apparent how important the three Cs are to our daily lives. And now it’s easy to recognize the increasing importance in our daily work, play, backup storage, and personal gathering of information. While infrastructure improvements in telecommunications and connectivity are understood by most, the cloud is a bit harder to wrap our minds around. The technology is only finding more uses and with high-tech attacks on data and storage needs growing, this area is becoming more exciting to investors as it matures and remains on the national infrastructure list.

 

Cloud Infrastructure Defined

To understand cloud infrastructure, we can’t skip over cloud computing. According to the National Institute of Standards and Technology website, cloud computing “…enables ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” Put another way; resources are available from everywhere, on-demand on a shared but partitioned, offsite resource.

Cloud infrastructure refers to the hardware and software components of the networks, servers, storage, virtualization software, applications, etc., that support the computing requirements of cloud computing. Cloud infrastructure also includes the abstraction layer that hides the inner workings and logically presents the resource or service to cloud users via app interfaces or another software intermediary.  This allows the two to comprehend each other and deliver a usable resource.

In cloud computing, these resources are hosted by a service provider or IT department and are available to users over the internet or through a network. The resources include machines and components, such as servers, memory, network switches, firewalls, load balancers, and storage.

 

Cloud Infrastructure Components

Investors seeking to benefit from the government’s attention to this area ought to discover the local companies involved in the design and manufacture of the various components, especially those more likely to receive a piece of taxpayers’ money. The cloud infrastructure includes the recognizable back-end hardware elements found within data centers – but on a greater scale. These are multisocket, multicore servers, persistent storage, and local area network equipment, such as switches and routers. U.S. Manufacturers of these components may benefit when a bill passes.

 

Take-Away

Globally the cloud computing market is projected to reach $791.48 billion by 2028, which has a compound annual growth rate of 17.9%. Specifically, in the U.S., there is a focus and likely funding that adds to the attractiveness of this tech sector. Although where the money will be spread is not certain, a recent executive order by the President shows he believes the big tech companies and other corporate giants have grown too large. Information on smaller U.S.-based companies operating in this sector are available on Channelchek along with company descriptions, data, and in the case of Digitech (DGTI), a newly published analysts report.

 

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Sources:

https://csrc.nist.gov/publications/detail/sp/800-145/final#:~:text=Cloud%20computing%20is%20a%20model,effort%20or%20service%20provider%20interaction.

 

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Image Credit: T/Data Breach (Flickr)

Ransomware, Data Breach, Cyberattack: What they have to do with your Personal Information, How Worried Should You Be?

 

The headlines are filled with news about ransomware attacks tying up organizations large and small, data breaches at major brand-name companies and cyberattacks by shadowy hackers associated with Russia, China, and North Korea. Are these threats to your personal information?

If it’s a ransomware attack on a pipeline company, probably not. If it’s a hack by foreign agents of a government agency, maybe, particularly if you’re a government employee. If it’s a data breach at a credit bureau, social media company or major retailer, very likely.

The bottom line is that your online data is not safe. Every week a new major data breach is reported, and most Americans have experienced some form of data theft. And it could hurt you. What should you do?

 

Mildly Annoyed or Majorly Aggrieved

First, was the latest digital crime a ransomware attack or was it a data breach? Ransomware attacks encrypt or lock up, your programs or data files, but your data is usually not exposed, so you probably have nothing to worry about. If the target is a company whose services you use, you might be inconvenienced while the company is out of commission.

If it was a data breach, find out if your information has been exposed. You may have been notified that your personal data was exposed. U.S. laws require companies to tell you if your data was stolen. But you can also check for yourself at haveibeenpwned.com.

A data breach could include theft of your online credentials: your username and password. But hackers might also steal your bank account or credit card numbers or other sensitive or protected information, such as your personal health information, your email address, phone number, street address or Social Security number.

Having your data stolen from a company can be scary, but it is also an opportunity to take stock and apply some common-sense measures to protect your data elsewhere. Even if your data has not been exposed yet, why not take the time now to protect yourself?

 

How Bad is It?

As a cybersecurity scholar, I suggest that you make a risk assessment. Ask yourself some simple questions, then take some precautions.

If you know your data was stolen, the most important question is what kind of data was stolen. Data thieves, just like car thieves, want to steal something valuable. Consider how attractive the data might be to someone else. Was it highly sensitive data that could harm you if it were in the wrong hands, like financial account records? Or was it data that couldn’t really cause you any problems if someone got hold of it? What information is your worst-case vulnerability if it were stolen? What could happen if data thieves take it?

Many e-commerce sites retain your purchase history, but not your credit card number, so ask yourself, did I authorize them to keep it on file? If you make recurring purchases from the site, such as at hotel chains, airlines and grocery stores, the answer is probably yes. Thieves don’t care about your seat preferences. They want to steal your credit card info or your loyalty rewards to sell on the black market.

 

What to Do

A hand holds a smartphone showing a text message on the screen.

Two-factor authentication, which typically involves receiving a code in a text message, provides an extra layer of security in case your password is stolen. The Focal Project/Flickr, CC BY-NC.

If you haven’t already, set up two-factor authentication with all websites that store your valuable data. If data thieves stole your password, but you use two-factor authentication, then they can’t use your password to access your account.

It takes a little effort to enter that single-use code sent to your phone each time, but it does protect you from harm when the inevitable breach occurs. Even better, use an authentication app rather than texting for two-factor authentication. This is especially critical for your bank and brokerage accounts. If you think your health-related information is valuable or sensitive, you should also take extra precautions with your health care provider’s website, your insurance company, and your pharmacy.

If you used a unique password instead of reusing a favorite password you’ve used elsewhere, hackers can’t successfully use your credentials to access your other accounts. One-third of users are vulnerable because they use the same password for every account.

Take this opportunity to change your passwords, especially at banks, brokerages and any site that retains your credit card number. You can record your unique passwords on a piece of paper hidden at home or in an encrypted file you keep in the cloud. Or you can download and install a good password manager. Password managers encrypt passwords on your devices before they’re sent into the cloud, so your passwords are protected even if the password manager company is hacked.

If your credit card number was exposed, you should notify your bank. Now is a good time to set up mobile banking alerts to receive notifications of unusual activity, big purchases and so on. Your bank may want to issue new cards with new numbers to you. That’s considerably less of a hassle than experiencing identity theft.

You should also consider closing old unused accounts so that the information associated with them is no longer available. Do you have a loyalty account with a hotel chain, restaurant, or airline that you haven’t used in years and won’t use again? Close it. If you have a credit card with that company, make sure they report the account closure to the credit reporting agencies.

Now is a great time to check your credit reports from all three credit bureaus. Do you rarely apply for new credit and want to protect your identity? If so, freeze your credit. Make sure to generate unique passwords and record them at home in case you need to unfreeze your credit later to apply for a loan. This will help protect you from some of the worst consequences of identity theft.

 

This article was republished with permission from The
Conversation, a news site dedicated to sharing ideas from academic
experts.  It was written by and represents the research-based findings of Merrill Warkentin, James J.
Rouse Endowed Professor of Information Systems, Mississippi State University.

 

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Comtech Telecommunications Corp. Awarded $5.0 Million Contract to Deploy a Next Generation 911 Solution to a U.S. Government End Customer

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 17, 2021– 
June 17, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a world leader in secure wireless communications technologies, announced today, that 
Comtech Solacom Technologies, Inc., a division of Comtech’s Commercial Solutions segment, was awarded a Next Generation 911 (“NG 911”) modernization project for a 
U.S. Government end customer. Of the total 
$5.0 million contract value, 
$3.2 million was awarded to 
Comtech in its fourth fiscal quarter.

Comtech Solacom will provide a full turnkey solution, including all hardware and software, installation, and training for a multi-node, geographically dispersed Guardian call management system. The Guardian solution will be deployed in a redundant, multi-geo-diverse configuration ensuring the highest possible service availability with an intuitive user interface allowing call takers to quickly assess, prioritize and handle landline, wireless and VoIP emergency calls. Call takers can quickly create conferences, transfer calls, determine the location of callers and replay recently recorded conversations.

“Comtech’s commitment to innovative next generation emergency communication solutions has been recognized by the selection of the Solacom Guardian solution to modernize the 911 operations of a major 
U.S. Government end customer. Deployed and supported in close cooperation with the prime contractor, the Guardian solution will further enhance our long-standing partnership with this customer allowing them to focus on critical missions,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp.

Comtech Solacom emergency call handling and management solutions are built on more than 30 years of research and innovation in the application of advanced hardware and software technologies for public safety. For more information, visit: www.solacom.com.

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer

Comtech Telecommunications Corp.
631-962-7000
info@comtechtel.com

Source: 
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Awarded $5.0 Million Contract to Deploy a Next Generation 911 Solution to a U.S. Government End Customer

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 17, 2021– 
June 17, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a world leader in secure wireless communications technologies, announced today, that 
Comtech Solacom Technologies, Inc., a division of Comtech’s Commercial Solutions segment, was awarded a Next Generation 911 (“NG 911”) modernization project for a 
U.S. Government end customer. Of the total 
$5.0 million contract value, 
$3.2 million was awarded to 
Comtech in its fourth fiscal quarter.

Comtech Solacom will provide a full turnkey solution, including all hardware and software, installation, and training for a multi-node, geographically dispersed Guardian call management system. The Guardian solution will be deployed in a redundant, multi-geo-diverse configuration ensuring the highest possible service availability with an intuitive user interface allowing call takers to quickly assess, prioritize and handle landline, wireless and VoIP emergency calls. Call takers can quickly create conferences, transfer calls, determine the location of callers and replay recently recorded conversations.

“Comtech’s commitment to innovative next generation emergency communication solutions has been recognized by the selection of the Solacom Guardian solution to modernize the 911 operations of a major 
U.S. Government end customer. Deployed and supported in close cooperation with the prime contractor, the Guardian solution will further enhance our long-standing partnership with this customer allowing them to focus on critical missions,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp.

Comtech Solacom emergency call handling and management solutions are built on more than 30 years of research and innovation in the application of advanced hardware and software technologies for public safety. For more information, visit: www.solacom.com.

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer

Comtech Telecommunications Corp.
631-962-7000
info@comtechtel.com

Source: 
Comtech Telecommunications Corp.

Tuesday, June 15, 2021

Comtech (CMTL)
Outerbridge Seeks Strategic Alternatives

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Kevin Wahle, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Outerbridge Letter. Yesterday, Outerbridge Capital announced it had delivered a letter to Comtech’s BoDs seeking a review of strategic alternatives. According to the letter, while Outerbridge believes “Comtech continues to be a market leader with best-in-class products and strong growth prospects, the Company…remains significantly undervalued.” Outerbridge values CMTL shares in the $32-$40 range.


Who Is Outerbridge? Founded by Rory Wallace, Outerbridge is a New York-based investment adviser that typically invests across the technology and technology-impacted sectors.  Probably its most well known play was at Barnes & Noble Education, where Outerbridge also pushed for a strategic review. Ultimately, the investment advisor ended up with two Board seats …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Tuesday, June 15, 2021

Voyager Digital Ltd. (VYGVF)(VYGR:CA)
Initiation on Voyager Digital: the Fastest Growing Digital Asset Broker

Voyager Digital Ltd through its subsidiary, operates as a crypto asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. The company offers investors execution, data, wallet and custody services through its institutional-grade open architecture platform.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Kevin Wahle, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiating Coverage. We are initiating research coverage on Voyager Digital Ltd. Voyager is a leading-edge, commission-free, crypto-currency brokerage. We believe the Company is well positioned to capitalize on fast growing interest in the cryptocurrency space, whiling leveraging its platform to become the central financial platform for its clients.


Leading Crypto Trading Platform With Stickiness.  Voyager’s platform enables trading on over 60 (and growing) different cryptocurrencies and assets, the largest of any platform. In addition, the Company pays interest on 20 of the coins, providing a reason for clients to move assets to, and keep them on, the platform. Voyager provides faster execution and deeper liquidity, often enabling clients to …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, June 11, 2021

Comtech (CMTL)
Positives Outweigh the Negatives

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q21 Results. Comtech reported revenue of $139.4 million, up 3.2% from the $135.1 million reported last year. Adjusted EBITDA came in at $17.7 million compared to $12.5 million last year. EPS was $0.03 and adjusted EPS was $0.26 compared to a loss of $0.16 and EPS of $0.05, respectively, last year. We had forecast revenue of $141 million, adjusted EBITDA of $10.6 million, EPS of $0.03, and adjusted EPS of $0.14.


Multiple Potential Business Drivers.  Comtech has a number of large opportunities ahead, including a multi-year agreement for next gen satellite earth station equipment that could be worth hundreds of millions, an updated version of BFT, also potentially worth in the hundreds of millions, multiple NG911 statewide contracts, and additional troposcatter opportunities. And, at the most basic, just a …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Noble Capital Markets Senior Research Analyst Joe Gomes sits down with TAAL Distributed Information Technologies President Chris Naprawa for this exclusive interview. Research, News, and Advanced Market Data on TAALF View all C-Suite Interviews About TAAL TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the BitcoinSV platform, and developing, operating, and managing distributed computing systems for enterprise users.

Comtech Telecommunications Corp. Declares $0.10 Per Share Quarterly Cash Dividend

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 8, 2021– 
June 8, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today that its Board of Directors declared a quarterly cash dividend of 
$0.10 per share, payable on 
August 20, 2021, to shareholders of record at the close of business on 
July 21, 2021. The dividend is the Company’s forty-fourth consecutive quarterly dividend. Future dividends remain subject to compliance with financial covenants under the Company’s secured credit facility as well as Board approval.

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Media Contacts:
Michael D. Porcelain, President and Chief Operating Officer
(631) 962-7000
Info@comtechtel.com

Source: 
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Announces Results for Its Fiscal 2021 Third Quarter and Updates Its Financial Targets for Fiscal 2021

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 8, 2021– 
June 8, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL) today reported its operating results for the third fiscal quarter ended 
April 30, 2021 and updated its financial targets for fiscal 2021.

Fiscal 2021 Third Quarter Highlights

• Consolidated net sales of 
  $139.4 million and Adjusted EBITDA of 
  $17.7 million (or 12.7% of consolidated net sales). Adjusted EBITDA, which significantly exceeded 
  Comtech’s expectation for its third quarter of fiscal 2021, is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure and is more fully defined below.

• With bookings of 
  $115.9 million, the Company achieved a book-to-bill ratio (a measure defined as bookings divided by net sales) of 0.83 during its third quarter of fiscal 2021. Backlog as of 
  April 30, 2021 was 
  $636.5 million. The total value of multi-year contracts that 
  Comtech has received is substantially higher than its reported backlog. When adding Comtech’s backlog and the total unfunded value of multi-year contracts that 
  Comtech has received and for which it expects future orders, its revenue visibility approximates 
  $1.1 billion.

• The Company incurred an aggregate of 
  $5.3 million of acquisition plan expenses due to the 
  April 2021 settlement of litigation related to the 2019 acquisition of GD NG-911 as well as the 
  March 2021 closing of the UHP acquisition. The integration of UHP into Comtech’s satellite ground station product line is well underway, and it does not expect to incur any significant acquisition plan expenses for the remainder of fiscal 2021.

• The Company’s annual effective income tax rate was 11.5%, excluding a net discrete tax expense of 
  $0.2 million.

• Comtech reported GAAP operating income of 
  $2.4 million, GAAP net income of 
  $0.8 million and GAAP net income per diluted share (“EPS”) of 
  $0.03 for the third quarter of fiscal 2021. Non-GAAP operating income was 
  $8.9 million, Non-GAAP net income was 
  $6.8 million and Non-GAAP EPS was 
  $0.26. These Non-GAAP amounts exclude acquisition plan expenses, restructuring costs, COVID-19 related costs, strategic emerging technology costs for next-generation satellite technology and a net discrete tax expense. Non-GAAP amounts are reconciled to the most directly comparable GAAP financial measures in the table below.

• Comtech generated GAAP operating cash flows of 
  $6.8 million during the third quarter and had 
  $39.2 million of cash and cash equivalents and total debt outstanding of 
  $215.0 million as of 
  April 30, 2021.

Commenting on the Company’s third quarter fiscal 2021 performance,  Fred Kornberg, Chairman of the Board and Chief Executive Officer, stated, “Thanks to the hard work of all of our team members, we achieved solid operating performance and have recently secured important contract awards that bode well for our future. We are continuing to invest in new state-of-the-art production and engineering facilities as well as new next-generation wireless technology solutions that we believe our customers will want in the post-COVID-19 pandemic economic recovery. Looking forward, we are confident that we will have a strong finish to fiscal 2021 and achieve growth in fiscal 2022.”

COMMENTS AND FINANCIAL TARGETS FOR EXPECTED FISCAL 2021 PERFORMANCE

Comtech is making the following comments on expected fiscal 2021 performance:

• Comtech expects fiscal 2021 consolidated net sales to be in a range of 
  $580.0 million to 
  $590.0 million. This updated target primarily reflects a change in anticipated revenues in its Government Solutions segment due to the 
  U.S. government’s 
  April 2021 announcement to fully withdraw troops from 
  Afghanistan as well as other program changes. At the same time, the Company’s effort to streamline business operations are paying off and it continues to target Adjusted EBITDA in a range of 
  $74.0 million to 
  $76.0 million for fiscal 2021.

• During the third quarter, 
  Comtech incurred 
  $0.3 million of strategic emerging technology costs for next-generation satellite technology to advance its solutions offerings to be used with new broadband satellite constellations. The Company is evaluating this new market in relation to its long-term business strategies, and it may incur additional costs over the next twelve months.

• As disclosed in the Company’s Quarterly Report on Form 10-Q filed with the 
  Securities and Exchange Commission (“SEC”) today, at the start of Comtech’s fourth quarter of fiscal 2021, it entered into a multi-year agreement enabling a customer to potentially order hundreds of millions of dollars of its next-generation satellite earth station technology. Shortly after 
  Comtech signed this agreement, it received its first order valued at more than 
  $13.0 million to make certain customizations on behalf of this customer. Work on these efforts has commenced immediately.

• Comtech expects fiscal 2021 revenue in its Commercial Solutions segment to be slightly higher than the amount it achieved in fiscal 2020, primarily due to: (i) strong demand for 
  Comtech’s public safety technology solutions; (ii) delivering 5G virtual mobile location-based technology solutions for two 
  U.S. tier-one mobile network operators; (iii) contract performance in support of a critical 
  U.S. Air Force and 
  U.S. Army Anti-jam Modem (“A3M”) program under the 
  U.S. Space Force’s Space and Missile Systems Center (“SMC”) agency; and (iv) deliveries of SLM-5650B satellite modems and firmware related to a previously awarded contract from the 
  U.S. Naval Information Warfare Systems Command.

• Comtech expects fiscal 2021 revenue in its Government Solutions segment to be significantly lower than the amount it achieved in fiscal 2020. Fiscal 2021 is anticipated to reflect significantly lower sales of field support services, partially offset by demand for: (i) Manpack Satellite Terminals, networking equipment and other advanced VSAT products by the 
  U.S. Army; (ii) ongoing sustainment services for the 
  U.S. Army for the AN/TSC-198A SNAP terminal; (iii) sustainment services for the 
  U.S. Army’s Project Manager Mission Command (“PM MC”) Blue Force Tracking (“BFT-1”) program; and (iv) Joint Cyber Analysis Course (“JCAC”) training solutions.

• During its third quarter of fiscal 2021, 
  Comtech initiated an effort to improve efficiencies and streamline operations in its Government Solutions segment. These efforts, which remain ongoing, include the consolidation of certain administrative and operating functions in both its 
  Florida and 
  Maryland locations. In addition, 
  Comtech has started to shift production of many of its key satellite earth station products from its existing 
  Tempe, Arizona locations to a new 146,000 square foot facility in 
  Chandler, Arizona as well as the combination of certain related functions. This new facility is located less than 10 miles from its current facilities and is expected to support anticipated growth and long-term business goals. Over time, these efforts are expected to improve consolidated Adjusted EBITDA margins.

• Additional information about the Company’s third quarter fiscal 2021 performance and updated fiscal 2021 targets can be found in the Company’s Form 10-Q as filed with the 
  SEC. Because of the pandemic’s continuing impact on global business conditions, the Company is not providing any GAAP operating income, GAAP net income or GAAP EPS guidance or a reconciliation of the Company’s projected Adjusted EBITDA results to the most comparable GAAP measure, as such a reconciliation cannot be prepared without unreasonable effort. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call

The Company has scheduled an investor conference call for 
4:30 PM (ET) on 
Tuesday, June 8, 2021. 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 www.comtechtel.com. Alternatively, investors can access the conference call by dialing (800) 895-3361 (domestic), or (785) 424-1062 (international) and using the conference I.D. ”
Comtech.” A replay of the conference call will be available for seven days by dialing (800) 839-4568 or (402) 220-2681. In addition, an updated investor presentation is available on the Company’s website.

About Comtech

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Cautionary Statement Regarding Forward-Looking Statements

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 possibility that the expected synergies and benefits from recent acquisitions will not be fully realized, or will not be realized within the anticipated time periods; the risk that the acquired businesses will not be integrated with the Company successfully; the possibility of disruption from recent acquisitions, making it more difficult to maintain business and operational relationships or retain key personnel; 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 expanding the sales of the 
Company’s Heights^TM Network Platform (“HEIGHTS”); changing customer demands and or procurement strategies; 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 legal proceedings, customer claims for indemnification, and other similar matters; risks associated with the Company’s obligations under its Credit Facility; risks associated with the Company’s large contracts; risks associated with the COVID-19 pandemic; and other factors described in this and the Company’s other filings with the 
Securities and Exchange Commission.

COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited)
		Three months ended  April 30,								Nine months ended  April 30,
		2021				2020				2021				2020
Net sales		$	139,376,000			$	135,121,000			$	435,886,000			$	467,042,000
Cost of sales		86,360,000				82,120,000				276,982,000				289,872,000
Gross profit		53,016,000				53,001,000				158,904,000				177,170,000
Expenses:
Selling, general and administrative		26,997,000				32,313,000				83,999,000				93,538,000
Research and development		13,092,000				12,324,000				37,391,000				40,925,000
Amortization of intangibles		5,310,000				5,517,000				15,671,000				15,952,000
Acquisition plan expenses		5,267,000				5,983,000				99,807,000				14,397,000
		50,666,000				56,137,000				236,868,000				164,812,000
Operating income (loss)		2,350,000				(3,136,000		)		(77,964,000		)		12,358,000
Other expenses (income):
Interest expense		1,518,000				1,504,000				5,233,000				4,924,000
Interest (income) and other		(276,000		)		108,000				(276,000		)		37,000
Income (loss) before provision for (benefit from) income taxes		1,108,000				(4,748,000		)		(82,921,000		)		7,397,000
Provision for (benefit from) income taxes		316,000				(759,000		)		(2,078,000		)		1,503,000
Net income (loss)		$	792,000			$	(3,989,000	)		$	(80,843,000	)		$	5,894,000
Net income (loss) per share:
Basic		$	0.03			$	(0.16	)		$	(3.12	)		$	0.24
Diluted		$	0.03			$	(0.16	)		$	(3.12	)		$	0.24
Weighted average number of common shares outstanding – basic		25,911,000				24,982,000				25,875,000				24,730,000
Weighted average number of common and common equivalent shares outstanding – diluted		26,266,000				24,982,000				25,875,000				24,892,000

COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets
	April 30, 2021				July 31, 2020
	(Unaudited)				(Audited)
Assets
Current assets:
Cash and cash equivalents	$	39,198,000			$	47,878,000
Accounts receivable, net	144,132,000				126,816,000
Inventories, net	83,106,000				82,302,000
Prepaid expenses and other current assets	25,801,000				20,101,000
Total current assets	292,237,000				277,097,000
Property, plant and equipment, net	29,366,000				27,037,000
Operating lease right-of-use assets, net	47,296,000				30,033,000
Goodwill	347,780,000				330,519,000
Intangibles with finite lives, net	274,048,000				258,019,000
Deferred financing costs, net	1,839,000				2,391,000
Other assets, net	6,026,000				4,551,000
Total assets	$	998,592,000			$	929,647,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	33,277,000			$	23,423,000
Accrued expenses and other current liabilities	97,602,000				85,161,000
Operating lease liabilities, current	8,755,000				8,247,000
Dividends payable	2,600,000				2,468,000
Contract liabilities	56,192,000				40,250,000
Interest payable	227,000				163,000
Total current liabilities	198,653,000				159,712,000
Non-current portion of long-term debt, net	215,000,000				149,500,000
Operating lease liabilities, non-current	41,542,000				24,109,000
Income taxes payable	2,588,000				1,963,000
Deferred tax liability, net	24,495,000				17,637,000
Long-term contract liabilities	8,997,000				9,596,000
Other liabilities	15,695,000				17,831,000
Total liabilities	506,970,000				380,348,000
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value  $.10 per share; shares authorized and unissued 2,000,000	—				—
Common stock, par value  $0.10 per share; authorized 100,000,000 shares; issued 41,102,215 shares and 39,924,439 shares at  April 30, 2021 and  July 31, 2020, respectively	4,110,000				3,992,000
Additional paid-in capital	601,029,000				569,891,000
Retained earnings	328,332,000				417,265,000
	933,471,000				991,148,000
Less:
Treasury stock, at cost (15,033,317 shares at  April 30, 2021 and  July 31, 2020)	(441,849,000		)		(441,849,000		)
Total stockholders’ equity	491,622,000				549,299,000
Total liabilities and stockholders’ equity	$	998,592,000			$	929,647,000

COMTECH TELECOMMUNICATIONS CORP.
AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)

Use of Non-GAAP Financial Measures

In order to provide investors with additional information regarding its financial results, this press release contains “Non-GAAP financial measures” under the rules of the 
SEC. The Company’s Adjusted EBITDA is a Non-GAAP measure that represents earnings (loss) before income taxes, interest (income) and other, write-off of deferred financing costs, interest expense, amortization of stock-based compensation, amortization of intangible assets, depreciation expense, estimated contract settlement costs, settlement of intellectual property litigation, acquisition plan expenses, restructuring costs, COVID-19 related costs, strategic emerging technology costs (for next-generation satellite technology), facility exit costs, strategic alternatives analysis expenses and other. The Company’s definition of Adjusted EBITDA may differ from the definition of EBITDA or Adjusted EBITDA used by other companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is also a measure frequently requested by the Company’s investors and analysts. The Company believes that investors and analysts may use Adjusted EBITDA, along with other information contained in its 
SEC filings, in assessing the Company’s performance and comparability of its results with other companies. The Company’s Non-GAAP measures for consolidated operating income, net income and net income per diluted share reflect the GAAP measures as reported, adjusted for certain items as discussed below. These Non-GAAP financial measures have limitations as an analytical tool as they exclude the financial impact of transactions necessary to conduct the Company’s business, such as the granting of equity compensation awards, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. These measures are adjusted as described in the reconciliation of GAAP to Non-GAAP in the below tables, but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. Investors are advised to carefully review the GAAP financial results that are disclosed in the Company’s 
SEC filings. The Company has not quantitatively reconciled its fiscal 2021 Adjusted EBITDA target to the most directly comparable GAAP measure because items such as stock-based compensation, adjustments to the provision for income taxes, amortization of intangibles and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted. For example, quantification of stock-based compensation expense requires inputs such as the number of shares granted and market price that are not currently ascertainable. Accordingly, 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.

		Three months ended								Nine months ended								Fiscal
		April 30,								April 30,								Year
		2021				2020				2021				2020				2020
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA:
Net income (loss)		$	792,000			$	(3,989,000	)		$	(80,843,000	)		$	5,894,000			$	7,020,000
Provision for (benefit from) income taxes		316,000				(759,000		)		(2,078,000		)		1,503,000				2,290,000
Interest (income) and other		(276,000		)		108,000				(276,000		)		37,000				(190,000		)
Interest expense		1,518,000				1,504,000				5,233,000				4,924,000				6,054,000
Amortization of stock-based compensation		1,204,000				981,000				3,190,000				3,098,000				9,275,000
Amortization of intangibles		5,310,000				5,517,000				15,671,000				15,952,000				21,595,000
Depreciation		2,274,000				2,650,000				7,283,000				8,022,000				10,561,000
Estimated contract settlement costs		—				476,000				—				444,000				444,000
Acquisition plan expenses		5,267,000				5,983,000				99,807,000				14,397,000				20,754,000
Restructuring costs		594,000				—				1,195,000				—				—
COVID-19 related costs		416,000				—				576,000				—				—
Strategic emerging technology costs		315,000				—				315,000				—				—
Adjusted EBITDA		$	17,730,000			$	12,471,000			$	50,073,000			$	54,271,000			$	77,803,000

In addition, a reconciliation of 
Comtech’s GAAP consolidated operating income (loss), net income (loss) and net income (loss) per diluted share to the corresponding non-GAAP measures is shown in the tables below for the three and nine months ended 
April 30, 2021 and 2020:

	April 30, 2021
	Three months ended												Nine months ended
	Operating Income				Net Income				Net Income per Diluted Share*				Operating (Loss) Income				Net (Loss) Income				Net (Loss) Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	2,350,000			$	792,000			$	0.03			$	(77,964,000	)		$	(80,843,000	)		$	(3.12	)
Acquisition plan expenses	5,267,000				4,661,000				0.18				99,807,000				96,379,000				3.70
Restructuring costs	594,000				526,000				0.02				1,195,000				1,058,000				0.04
COVID-19 related costs	416,000				368,000				0.01				576,000				510,000				0.02
Strategic emerging technology costs	315,000				279,000				0.01				315,000				279,000				0.01
Interest expense	—				—				—				—				1,043,000				0.04
Net discrete tax expense (benefit)	—				189,000				0.01				—				(592,000		)		(0.02		)
Non-GAAP measures	$	8,942,000			$	6,815,000			$	0.26			$	23,929,000			$	17,834,000			$	0.69
	April 30, 2020
	Three months ended												Nine months ended
	Operating (Loss) Income				Net (Loss) Income				Net (Loss) Income per Diluted Share*				Operating Income				Net Income				Net Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	(3,136,000	)		$	(3,989,000	)		$	(0.16	)		$	12,358,000			$	5,894,000			$	0.24
Acquisition plan expenses	5,983,000				4,128,000				0.16				14,397,000				9,934,000				0.40
Estimated contract settlement costs	476,000				328,000				0.01				444,000				306,000				0.01
Net discrete tax expense (benefit)	—				713,000				0.03				—				(790,000		)		(0.03		)
Non-GAAP measures	$	3,323,000			$	1,180,000			$	0.05			$	27,199,000			$	15,344,000			$	0.62
	Fiscal Year 2020
	Operating Income				Net Income				Net Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	15,174,000			$	7,020,000			$	0.28
Estimated contract settlement costs	444,000				280,000				0.01
Acquisition plan expenses	20,754,000				13,075,000				0.53
Net discrete tax benefit	—				(1,155,000		)		(0.05		)
Non-GAAP measures	$	36,372,000			$	19,220,000			$	0.77

* Per share amounts may not foot due to rounding. Non-GAAP EPS adjustments for the nine months ended 
April 30, 2021 were computed using 26,016,000 weighted average diluted shares outstanding during the respective period. In addition, non-GAAP EPS adjustments for three months ended 
April 30, 2020 were computed using 25,058,000 weighted average diluted shares outstanding during the respective period.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer
(631) 962-7000
Info@comtechtel.com

Source: 
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Announces Results for Its Fiscal 2021 Third Quarter and Updates Its Financial Targets for Fiscal 2021

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 8, 2021– 
June 8, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL) today reported its operating results for the third fiscal quarter ended 
April 30, 2021 and updated its financial targets for fiscal 2021.

Fiscal 2021 Third Quarter Highlights

• Consolidated net sales of 
  $139.4 million and Adjusted EBITDA of 
  $17.7 million (or 12.7% of consolidated net sales). Adjusted EBITDA, which significantly exceeded 
  Comtech’s expectation for its third quarter of fiscal 2021, is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure and is more fully defined below.

• With bookings of 
  $115.9 million, the Company achieved a book-to-bill ratio (a measure defined as bookings divided by net sales) of 0.83 during its third quarter of fiscal 2021. Backlog as of 
  April 30, 2021 was 
  $636.5 million. The total value of multi-year contracts that 
  Comtech has received is substantially higher than its reported backlog. When adding Comtech’s backlog and the total unfunded value of multi-year contracts that 
  Comtech has received and for which it expects future orders, its revenue visibility approximates 
  $1.1 billion.

• The Company incurred an aggregate of 
  $5.3 million of acquisition plan expenses due to the 
  April 2021 settlement of litigation related to the 2019 acquisition of GD NG-911 as well as the 
  March 2021 closing of the UHP acquisition. The integration of UHP into Comtech’s satellite ground station product line is well underway, and it does not expect to incur any significant acquisition plan expenses for the remainder of fiscal 2021.

• The Company’s annual effective income tax rate was 11.5%, excluding a net discrete tax expense of 
  $0.2 million.

• Comtech reported GAAP operating income of 
  $2.4 million, GAAP net income of 
  $0.8 million and GAAP net income per diluted share (“EPS”) of 
  $0.03 for the third quarter of fiscal 2021. Non-GAAP operating income was 
  $8.9 million, Non-GAAP net income was 
  $6.8 million and Non-GAAP EPS was 
  $0.26. These Non-GAAP amounts exclude acquisition plan expenses, restructuring costs, COVID-19 related costs, strategic emerging technology costs for next-generation satellite technology and a net discrete tax expense. Non-GAAP amounts are reconciled to the most directly comparable GAAP financial measures in the table below.

• Comtech generated GAAP operating cash flows of 
  $6.8 million during the third quarter and had 
  $39.2 million of cash and cash equivalents and total debt outstanding of 
  $215.0 million as of 
  April 30, 2021.

Commenting on the Company’s third quarter fiscal 2021 performance,  Fred Kornberg, Chairman of the Board and Chief Executive Officer, stated, “Thanks to the hard work of all of our team members, we achieved solid operating performance and have recently secured important contract awards that bode well for our future. We are continuing to invest in new state-of-the-art production and engineering facilities as well as new next-generation wireless technology solutions that we believe our customers will want in the post-COVID-19 pandemic economic recovery. Looking forward, we are confident that we will have a strong finish to fiscal 2021 and achieve growth in fiscal 2022.”

COMMENTS AND FINANCIAL TARGETS FOR EXPECTED FISCAL 2021 PERFORMANCE

Comtech is making the following comments on expected fiscal 2021 performance:

• Comtech expects fiscal 2021 consolidated net sales to be in a range of 
  $580.0 million to 
  $590.0 million. This updated target primarily reflects a change in anticipated revenues in its Government Solutions segment due to the 
  U.S. government’s 
  April 2021 announcement to fully withdraw troops from 
  Afghanistan as well as other program changes. At the same time, the Company’s effort to streamline business operations are paying off and it continues to target Adjusted EBITDA in a range of 
  $74.0 million to 
  $76.0 million for fiscal 2021.

• During the third quarter, 
  Comtech incurred 
  $0.3 million of strategic emerging technology costs for next-generation satellite technology to advance its solutions offerings to be used with new broadband satellite constellations. The Company is evaluating this new market in relation to its long-term business strategies, and it may incur additional costs over the next twelve months.

• As disclosed in the Company’s Quarterly Report on Form 10-Q filed with the 
  Securities and Exchange Commission (“SEC”) today, at the start of Comtech’s fourth quarter of fiscal 2021, it entered into a multi-year agreement enabling a customer to potentially order hundreds of millions of dollars of its next-generation satellite earth station technology. Shortly after 
  Comtech signed this agreement, it received its first order valued at more than 
  $13.0 million to make certain customizations on behalf of this customer. Work on these efforts has commenced immediately.

• Comtech expects fiscal 2021 revenue in its Commercial Solutions segment to be slightly higher than the amount it achieved in fiscal 2020, primarily due to: (i) strong demand for 
  Comtech’s public safety technology solutions; (ii) delivering 5G virtual mobile location-based technology solutions for two 
  U.S. tier-one mobile network operators; (iii) contract performance in support of a critical 
  U.S. Air Force and 
  U.S. Army Anti-jam Modem (“A3M”) program under the 
  U.S. Space Force’s Space and Missile Systems Center (“SMC”) agency; and (iv) deliveries of SLM-5650B satellite modems and firmware related to a previously awarded contract from the 
  U.S. Naval Information Warfare Systems Command.

• Comtech expects fiscal 2021 revenue in its Government Solutions segment to be significantly lower than the amount it achieved in fiscal 2020. Fiscal 2021 is anticipated to reflect significantly lower sales of field support services, partially offset by demand for: (i) Manpack Satellite Terminals, networking equipment and other advanced VSAT products by the 
  U.S. Army; (ii) ongoing sustainment services for the 
  U.S. Army for the AN/TSC-198A SNAP terminal; (iii) sustainment services for the 
  U.S. Army’s Project Manager Mission Command (“PM MC”) Blue Force Tracking (“BFT-1”) program; and (iv) Joint Cyber Analysis Course (“JCAC”) training solutions.

• During its third quarter of fiscal 2021, 
  Comtech initiated an effort to improve efficiencies and streamline operations in its Government Solutions segment. These efforts, which remain ongoing, include the consolidation of certain administrative and operating functions in both its 
  Florida and 
  Maryland locations. In addition, 
  Comtech has started to shift production of many of its key satellite earth station products from its existing 
  Tempe, Arizona locations to a new 146,000 square foot facility in 
  Chandler, Arizona as well as the combination of certain related functions. This new facility is located less than 10 miles from its current facilities and is expected to support anticipated growth and long-term business goals. Over time, these efforts are expected to improve consolidated Adjusted EBITDA margins.

• Additional information about the Company’s third quarter fiscal 2021 performance and updated fiscal 2021 targets can be found in the Company’s Form 10-Q as filed with the 
  SEC. Because of the pandemic’s continuing impact on global business conditions, the Company is not providing any GAAP operating income, GAAP net income or GAAP EPS guidance or a reconciliation of the Company’s projected Adjusted EBITDA results to the most comparable GAAP measure, as such a reconciliation cannot be prepared without unreasonable effort. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call

The Company has scheduled an investor conference call for 
4:30 PM (ET) on 
Tuesday, June 8, 2021. 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 www.comtechtel.com. Alternatively, investors can access the conference call by dialing (800) 895-3361 (domestic), or (785) 424-1062 (international) and using the conference I.D. ”
Comtech.” A replay of the conference call will be available for seven days by dialing (800) 839-4568 or (402) 220-2681. In addition, an updated investor presentation is available on the Company’s website.

About Comtech

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Cautionary Statement Regarding Forward-Looking Statements

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 possibility that the expected synergies and benefits from recent acquisitions will not be fully realized, or will not be realized within the anticipated time periods; the risk that the acquired businesses will not be integrated with the Company successfully; the possibility of disruption from recent acquisitions, making it more difficult to maintain business and operational relationships or retain key personnel; 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 expanding the sales of the 
Company’s Heights^TM Network Platform (“HEIGHTS”); changing customer demands and or procurement strategies; 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 legal proceedings, customer claims for indemnification, and other similar matters; risks associated with the Company’s obligations under its Credit Facility; risks associated with the Company’s large contracts; risks associated with the COVID-19 pandemic; and other factors described in this and the Company’s other filings with the 
Securities and Exchange Commission.

COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited)
		Three months ended  April 30,								Nine months ended  April 30,
		2021				2020				2021				2020
Net sales		$	139,376,000			$	135,121,000			$	435,886,000			$	467,042,000
Cost of sales		86,360,000				82,120,000				276,982,000				289,872,000
Gross profit		53,016,000				53,001,000				158,904,000				177,170,000
Expenses:
Selling, general and administrative		26,997,000				32,313,000				83,999,000				93,538,000
Research and development		13,092,000				12,324,000				37,391,000				40,925,000
Amortization of intangibles		5,310,000				5,517,000				15,671,000				15,952,000
Acquisition plan expenses		5,267,000				5,983,000				99,807,000				14,397,000
		50,666,000				56,137,000				236,868,000				164,812,000
Operating income (loss)		2,350,000				(3,136,000		)		(77,964,000		)		12,358,000
Other expenses (income):
Interest expense		1,518,000				1,504,000				5,233,000				4,924,000
Interest (income) and other		(276,000		)		108,000				(276,000		)		37,000
Income (loss) before provision for (benefit from) income taxes		1,108,000				(4,748,000		)		(82,921,000		)		7,397,000
Provision for (benefit from) income taxes		316,000				(759,000		)		(2,078,000		)		1,503,000
Net income (loss)		$	792,000			$	(3,989,000	)		$	(80,843,000	)		$	5,894,000
Net income (loss) per share:
Basic		$	0.03			$	(0.16	)		$	(3.12	)		$	0.24
Diluted		$	0.03			$	(0.16	)		$	(3.12	)		$	0.24
Weighted average number of common shares outstanding – basic		25,911,000				24,982,000				25,875,000				24,730,000
Weighted average number of common and common equivalent shares outstanding – diluted		26,266,000				24,982,000				25,875,000				24,892,000

COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets
	April 30, 2021				July 31, 2020
	(Unaudited)				(Audited)
Assets
Current assets:
Cash and cash equivalents	$	39,198,000			$	47,878,000
Accounts receivable, net	144,132,000				126,816,000
Inventories, net	83,106,000				82,302,000
Prepaid expenses and other current assets	25,801,000				20,101,000
Total current assets	292,237,000				277,097,000
Property, plant and equipment, net	29,366,000				27,037,000
Operating lease right-of-use assets, net	47,296,000				30,033,000
Goodwill	347,780,000				330,519,000
Intangibles with finite lives, net	274,048,000				258,019,000
Deferred financing costs, net	1,839,000				2,391,000
Other assets, net	6,026,000				4,551,000
Total assets	$	998,592,000			$	929,647,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	33,277,000			$	23,423,000
Accrued expenses and other current liabilities	97,602,000				85,161,000
Operating lease liabilities, current	8,755,000				8,247,000
Dividends payable	2,600,000				2,468,000
Contract liabilities	56,192,000				40,250,000
Interest payable	227,000				163,000
Total current liabilities	198,653,000				159,712,000
Non-current portion of long-term debt, net	215,000,000				149,500,000
Operating lease liabilities, non-current	41,542,000				24,109,000
Income taxes payable	2,588,000				1,963,000
Deferred tax liability, net	24,495,000				17,637,000
Long-term contract liabilities	8,997,000				9,596,000
Other liabilities	15,695,000				17,831,000
Total liabilities	506,970,000				380,348,000
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value  $.10 per share; shares authorized and unissued 2,000,000	—				—
Common stock, par value  $0.10 per share; authorized 100,000,000 shares; issued 41,102,215 shares and 39,924,439 shares at  April 30, 2021 and  July 31, 2020, respectively	4,110,000				3,992,000
Additional paid-in capital	601,029,000				569,891,000
Retained earnings	328,332,000				417,265,000
	933,471,000				991,148,000
Less:
Treasury stock, at cost (15,033,317 shares at  April 30, 2021 and  July 31, 2020)	(441,849,000		)		(441,849,000		)
Total stockholders’ equity	491,622,000				549,299,000
Total liabilities and stockholders’ equity	$	998,592,000			$	929,647,000

COMTECH TELECOMMUNICATIONS CORP.
AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)

Use of Non-GAAP Financial Measures

In order to provide investors with additional information regarding its financial results, this press release contains “Non-GAAP financial measures” under the rules of the 
SEC. The Company’s Adjusted EBITDA is a Non-GAAP measure that represents earnings (loss) before income taxes, interest (income) and other, write-off of deferred financing costs, interest expense, amortization of stock-based compensation, amortization of intangible assets, depreciation expense, estimated contract settlement costs, settlement of intellectual property litigation, acquisition plan expenses, restructuring costs, COVID-19 related costs, strategic emerging technology costs (for next-generation satellite technology), facility exit costs, strategic alternatives analysis expenses and other. The Company’s definition of Adjusted EBITDA may differ from the definition of EBITDA or Adjusted EBITDA used by other companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is also a measure frequently requested by the Company’s investors and analysts. The Company believes that investors and analysts may use Adjusted EBITDA, along with other information contained in its 
SEC filings, in assessing the Company’s performance and comparability of its results with other companies. The Company’s Non-GAAP measures for consolidated operating income, net income and net income per diluted share reflect the GAAP measures as reported, adjusted for certain items as discussed below. These Non-GAAP financial measures have limitations as an analytical tool as they exclude the financial impact of transactions necessary to conduct the Company’s business, such as the granting of equity compensation awards, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. These measures are adjusted as described in the reconciliation of GAAP to Non-GAAP in the below tables, but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. Investors are advised to carefully review the GAAP financial results that are disclosed in the Company’s 
SEC filings. The Company has not quantitatively reconciled its fiscal 2021 Adjusted EBITDA target to the most directly comparable GAAP measure because items such as stock-based compensation, adjustments to the provision for income taxes, amortization of intangibles and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted. For example, quantification of stock-based compensation expense requires inputs such as the number of shares granted and market price that are not currently ascertainable. Accordingly, 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.

		Three months ended								Nine months ended								Fiscal
		April 30,								April 30,								Year
		2021				2020				2021				2020				2020
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA:
Net income (loss)		$	792,000			$	(3,989,000	)		$	(80,843,000	)		$	5,894,000			$	7,020,000
Provision for (benefit from) income taxes		316,000				(759,000		)		(2,078,000		)		1,503,000				2,290,000
Interest (income) and other		(276,000		)		108,000				(276,000		)		37,000				(190,000		)
Interest expense		1,518,000				1,504,000				5,233,000				4,924,000				6,054,000
Amortization of stock-based compensation		1,204,000				981,000				3,190,000				3,098,000				9,275,000
Amortization of intangibles		5,310,000				5,517,000				15,671,000				15,952,000				21,595,000
Depreciation		2,274,000				2,650,000				7,283,000				8,022,000				10,561,000
Estimated contract settlement costs		—				476,000				—				444,000				444,000
Acquisition plan expenses		5,267,000				5,983,000				99,807,000				14,397,000				20,754,000
Restructuring costs		594,000				—				1,195,000				—				—
COVID-19 related costs		416,000				—				576,000				—				—
Strategic emerging technology costs		315,000				—				315,000				—				—
Adjusted EBITDA		$	17,730,000			$	12,471,000			$	50,073,000			$	54,271,000			$	77,803,000

In addition, a reconciliation of 
Comtech’s GAAP consolidated operating income (loss), net income (loss) and net income (loss) per diluted share to the corresponding non-GAAP measures is shown in the tables below for the three and nine months ended 
April 30, 2021 and 2020:

	April 30, 2021
	Three months ended												Nine months ended
	Operating Income				Net Income				Net Income per Diluted Share*				Operating (Loss) Income				Net (Loss) Income				Net (Loss) Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	2,350,000			$	792,000			$	0.03			$	(77,964,000	)		$	(80,843,000	)		$	(3.12	)
Acquisition plan expenses	5,267,000				4,661,000				0.18				99,807,000				96,379,000				3.70
Restructuring costs	594,000				526,000				0.02				1,195,000				1,058,000				0.04
COVID-19 related costs	416,000				368,000				0.01				576,000				510,000				0.02
Strategic emerging technology costs	315,000				279,000				0.01				315,000				279,000				0.01
Interest expense	—				—				—				—				1,043,000				0.04
Net discrete tax expense (benefit)	—				189,000				0.01				—				(592,000		)		(0.02		)
Non-GAAP measures	$	8,942,000			$	6,815,000			$	0.26			$	23,929,000			$	17,834,000			$	0.69
	April 30, 2020
	Three months ended												Nine months ended
	Operating (Loss) Income				Net (Loss) Income				Net (Loss) Income per Diluted Share*				Operating Income				Net Income				Net Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	(3,136,000	)		$	(3,989,000	)		$	(0.16	)		$	12,358,000			$	5,894,000			$	0.24
Acquisition plan expenses	5,983,000				4,128,000				0.16				14,397,000				9,934,000				0.40
Estimated contract settlement costs	476,000				328,000				0.01				444,000				306,000				0.01
Net discrete tax expense (benefit)	—				713,000				0.03				—				(790,000		)		(0.03		)
Non-GAAP measures	$	3,323,000			$	1,180,000			$	0.05			$	27,199,000			$	15,344,000			$	0.62
	Fiscal Year 2020
	Operating Income				Net Income				Net Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	15,174,000			$	7,020,000			$	0.28
Estimated contract settlement costs	444,000				280,000				0.01
Acquisition plan expenses	20,754,000				13,075,000				0.53
Net discrete tax benefit	—				(1,155,000		)		(0.05		)
Non-GAAP measures	$	36,372,000			$	19,220,000			$	0.77

* Per share amounts may not foot due to rounding. Non-GAAP EPS adjustments for the nine months ended 
April 30, 2021 were computed using 26,016,000 weighted average diluted shares outstanding during the respective period. In addition, non-GAAP EPS adjustments for three months ended 
April 30, 2020 were computed using 25,058,000 weighted average diluted shares outstanding during the respective period.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer
(631) 962-7000
Info@comtechtel.com

Source: 
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Declares $0.10 Per Share Quarterly Cash Dividend

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 8, 2021– 
June 8, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today that its Board of Directors declared a quarterly cash dividend of 
$0.10 per share, payable on 
August 20, 2021, to shareholders of record at the close of business on 
July 21, 2021. The dividend is the Company’s forty-fourth consecutive quarterly dividend. Future dividends remain subject to compliance with financial covenants under the Company’s secured credit facility as well as Board approval.

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Media Contacts:
Michael D. Porcelain, President and Chief Operating Officer
(631) 962-7000
Info@comtechtel.com

Source: 
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Announces First International 5G Location Services Contract with a Tier-One Carrier

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 4, 2021– 
June 4, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a world leader in secure wireless communication technologies, announced today, that during its third quarter of fiscal 2021, its Location Technologies group, a division of Comtech’s Commercial Solutions segment, was awarded its first international 5G location services contract with a leading tier-one mobile network operator in 
Australia.

“We are pleased to continue working with this long-standing customer who has leveraged Comtech’s location technology platforms over the years to support the increasing demands of public safety services across the 3G, 4G and now also 5G networks,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp. “We have a proven track record of long-term customer relationships where our location technology supports enterprises worldwide.”

The Location Technologies group of 
Comtech Telecommunications Corp. is a leading provider of precise device location, mapping and messaging solutions for public safety, mobile network operators, and enterprise solutions. Sold around the world to mobile network operators, government agencies, and Fortune 100 enterprises, our platforms locate, map, track and message. For more information, visit www.comtechlocation.com.

Comtech 
Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com. 

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer

Comtech Telecommunications Corp.
631-962-7000
info@comtechtel.com

Source: 
Comtech Telecommunications Corp.