Comtech reports 150% increase in net income

Comtech Telecommunications Corp. Thursday reported a 150 percent Comtech Telecommunications Corp. Thursday reported a 150 percent increase in second quarter net income to $5.98 million on strong sales in telecommunications transmission gear and radio frequency microwave amplifiers. Above, Fred Kornberg, Comtech president and chief executive in 2003. Photo Credit: Newsday / Alejandra Villa

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Comtech Telecommunications Corp. Thursday reported a 150 percent increase in second quarter net income to $5.98 million on strong sales in telecommunications transmission gear and radio frequency microwave amplifiers.

Net sales at the Melville company climbed 14.6 percent compared to the year-ago period, to $85.5 million. Earnings per diluted share were 32 cents, versus 14 cents in the prior-year period.

"Although market conditions are difficult, we are pleased with our solid financial performance through the second quarter of fiscal 2014," Fred Kornberg, president and chief executive, said in a statement.

The quarter's increase in net income came despite an 83 percent increase in income taxes to $3.4 million. The consensus of analysts had expected earnings per share of 26 cents on sales of $80.3 million.

Comtech, which employs about 1,200 people at facilities in Massachusetts, California, Arizona and elsewhere, maintained its fiscal 2014 revenue guidance ranging from $325 million to $345 million.

After repurchasing more than 800,000 shares of stock during the quarter ended Jan. 31, however, Comtech increased its forecast of diluted earnings per share to a range of $1.14 to $1.26.

Comtech, which makes advanced telecommunications equipment for the military and civilian markets, released its earnings after the market close. In after-hours trading Comtech shares climbed 4.33 percent.

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The company scheduled a conference call for tomorrow morning.

Before its earnings release, Comtech announced a 30 cent per share quarterly cash dividend payable to shareholders of record as of May 7.

Sales to the federal government accounted for about 31.2 percent of net sales in the quarter ended Jan. 31. International sales, including sales to U.S. customers for export markets, made up 57.5 percent of the quarter's total.

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