TODAY'S PAPER
Good Morning
Good Morning
Business

Comtech boosts revenue forecast after acquisition

Comtech Telecommunications Corp. Thursday reported that second quarter sales and net income declined compared to the year-ago period, but raised its fiscal 2016 revenue forecast to reflect a major acquisition.

The Melville manufacturer of communications systems for government and civilian markets posted net income of $2.5 million, or 15 cents per diluted share, on sales of $70.3 million for the quarter ended Jan. 31. That compared to net income of $7.6 million, or 46 cents per diluted share, on revenue of $81.8 million in the prior year’s quarter.

In light of the Feb. 23 acquisition of TeleCommunications Systems Inc., based in Annapolis, Maryland, Comtech raised its fiscal 2016 revenue guidance from a range of $300 million to $310 million to a range of $435 million to $445 million.

“Despite extremely challenging market conditions and our efforts associated with acquiring and planning for the integration of TCS, I am pleased with our second quarter results. We generated significant cash flows from our operating activities and did not take our eye off the ball,” Comtech president and chief executive Stanton Sloane said in a statement.

“We believe our business is at a turning point and . . . the TCS acquisition was a significant step in our strategy of entering complementary markets and expanding our domestic and international commercial offerings,” Sloane said.

In after-hours trading following the earnings release, Comtech shares gained more than 2 percent to $22.10.

More news