- Comtech Telecomm. Corp. (NASDAQ: CMTL) reported a third-quarter sales decline of 12.4% year-over-year to $122.1 million, missing the consensus of $122.44 million.
- The gross margin expanded 12 bps to 38.2%. The company recorded an operating loss of $(566) thousand, compared to an income of $2.35 million a year ago.
- Adjusted EPS was $(0.06), in line with the consensus of $(0.06).
- Adjusted EBITDA declined 36.9% Y/Y to $11.19 million and margin contracted by 355 bps to 9.2%. The decrease reflects the impact of lower sales in the Government Solutions segment.
- Cash flows used in operating activities for the quarter were $(1.1) million.
- New bookings were $113.4 million, a 10.2% sequential increase, and a quarterly book-to-bill ratio of 0.93x.
- The backlog was $602.3 million as of April 30, 2022. Revenue visibility of ~$1.2 billion.
- Dividend: CMTL declared a quarterly cash dividend of $0.10 per common share, payable on August 19, 2022, to shareholders of record at the close of business on July 20, 2022
- FY22 Guidance: CMTL expects Q4 net sales of $123 million, resulting in expected fiscal consolidated net sales of ~$482 million (prior expectation of $520 million).
- It sees Q4 fiscal 2022 Adjusted EBITDA of $11.5 million and FY22 Adjusted EBITDA of ~$38 million (prior ~$50 million).
- Price Action: CMTL shares are trading lower by 17.10% at $10.22 during the post-market session on Thursday.
- Photo via Company
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