Comtech's 2Q profits fall 60 percent
Comtech Telecommunications Corp., a Melville defense-electronics contractor, reported a sharp drop in second-quarter profits Thursday amid a sluggish global economy and uncertainty over the future of government spending in Washington.
Net income dropped 60 percent, to $2.4 million, or 14 cents per share, during November, December and January, compared to the same period a year earlier. Sales dropped 25 percent to $74.6 million.
"Although we are clearly experiencing significant headwinds from a variety of global economic issues, we continue to spend the research and development dollars necessary to maintain our leadership position during these difficult times and position us for growth as economic conditions improve and . . . government funding frees up," Comtech president and chief executive Fred Kornberg said in a statement.
The company also lowered its financial guidance, saying it expected between $320 million and $330 million in revenue this year, down from $425 million in 2012.
Comtech designs, develops and manufactures electronic products and systems used in satellite communications. Like many defense contractors, the company depends heavily on federal spending for its sales.
Comtech's sales have fallen sharply since 2010, when it lost out on an Army contract to build a second-generation satellite-based military vehicle tracking system.