Comtech posts flat net income as revenue declines
Comtech Telecommunications Corp. Wednesday posted flat net income despite an 8.4 percent decline in first quarter sales.
The Melville maker of communications equipment reported sales of $76.4 million versus $83.4 million in the year-earlier period. Net income was $5.2 million, in line with the $5.3 million in 2013. Diluted earnings per share came in at 32 cents, 4 cents higher than the prior year's quarter.
The company, which reported after Wednesday's market close, said it is maintaining its diluted earnings per share guidance of $1.70 to $1.86 despite incurring expenses of about $600,000 related to an exploration of a possible sale or merger.
Comtech shares tumbled 9.3 percent to $35.33 Wednesday after the company's announcement late Tuesday afternoon that it had called off its search for a buyer or merger partner.
The company also declared a quarterly cash dividend payable Feb. 18 of 30 cents per share.
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.
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