Comtech Telecommunications Corp. Wednesday reported a 26.8 percent increase in year-over-year net income to $7.6 million for the second quarter, but scaled back its financial forecast for fiscal 2015, citing the impact of declining oil prices and the strong dollar on international customers.
Earnings per share at the Melville-based defense contractor climbed to 47 cents from 37 cents in the 2014 quarter. But net sales edged down to $81.8 million compared to $85.5 million in the prior year's period.
Comtech, which makes equipment for satellite and over-the-horizon communication systems, cut its fiscal 2015 revenue outlook to a range of $320 million to $330 million. Earlier forecasts had projected sales of $355 million to $365 million. Comtech lowered its earnings forecast to $1.35 to $1.51 per diluted share from a range of $1.70 to $1.86.
"Although we were able to deliver solid financial results during our second quarter, bookings for our satellite earth station products in many geographic regions, in particular Russia and certain Middle Eastern countries, have been impacted by volatile business conditions, including the continuing decline in oil prices and the strengthening of the U.S. dollar, both of which lower the purchasing power of many of our international customers," Stanton Sloane, president and chief executive, said in a statement.
Sloane, who had served as a Comtech director, replaced longtime executive Fred Kornberg as president and CEO in January. The company ranked No. 21 by sales on Newsday's list of Long Island's top public companies as of June 2014.
Comtech's shares gained 2.7 percent to close at $31.72 Wednesday, but turned sharply lower in after-hours trading after the earnings announcement.