Comtech reports loss, but sees revenue jump after acquisition
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. Credit: Barry University
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.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
