Comtech reports loss, but sees revenue jump after acquisition

Comtech Telecommunications Corp. on Wednesday reported a loss for the February-April period compared with a year ago because of a recent acquisition.

The Melville-based manufacturer of satellite, communications and electronic warfare systems said it lost $14.4 million in the quarter ended April 30, compared with a profit of $5 million a year earlier.

Sales climbed in the quarter to $124 million, a 73 percent increase year over year.

Comtech CEO Stanton Sloane said the company’s financial performance was impacted by its February purchase of TeleCommunication Systems Inc., a communications-gear company based in Maryland. The deal was valued at about $340 million.

He said the fiscal 2016 third quarter “reflects only two full months of [TeleCommunication Systems] operations but we are extremely pleased with what we have seen so far . . . With much of the integration work behind us, I look forward to a solid finish to fiscal 2016 and I am increasingly optimistic that fiscal 2017 will be a strong year,” he said.

Sloane also said Comtech benefited from TeleCommunication Systems’ product line, which added $66 million in sales at a time when Comtech products were struggling.

Last month, Comtech reported it had signed an $8.4 million contract with an unnamed telecom equipment manufacturer to distribute Comtech products to mobile phone networks. In April, the company announced a similar contract valued at more than $12 million with the same manufacturer.

Comtech shares on Wednesday closed down 31 cents, or more than 1 percent, to $22.44 on the Nasdaq Stock Market.