Comtech shares edge higher as net income rises on military orders

Shares of Comtech Telecommunications Corp. edged higher Thursday after the Melville company posted sharply higher third quarter net income bolstered by a stream of orders from the military.

The maker of advanced telecommunications equipment for military and civilian markets released its earnings after the market close Wednesday.

Comtech shares rose 5 cents, or 0.15 percent, to close at $32.44 Thursday. The stock has more than doubled from $14.74 12 months ago.

Net income almost doubled to $8.2 million, or 34 cents per diluted share, from $4.4 million, or 19 cents per diluted share, in the previous year’s quarter.

Net sales in the quarter ended April 30 climbed to $147.9 million from $127.8 million in the 2017 quarter.

“Our results for the third quarter exceeded our expectations and our pipeline of opportunities remains strong,” Fred Kornberg, president and chief executive, said in a statement.

The company maintained its revenue target of $570 million to $585 million for the fiscal year, but increased its estimated earnings per share range from $1.08 to $1.23 to $1.17 to $1.23.

The company provides modems and other communications equipment and software for military and civilian satellites and 911 and location services for wireless carriers.

Earlier this week, Comtech announced a $3.3 million U.S. Army order for microwave communications equipment on the Korean Peninsula and a “collaboration” to deploy low-cost, low Earth orbit satellites with Toronto-based Kepler Communications.

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.