Comtech sales fall amid fears of 'fiscal cliff'
Comtech develops high-tech communication systems. Credit: Handout
Melville-based Comtech Telecommunications Corp. yesterday said its first-quarter profits plunged 41 percent, to $7.4 million, as its defense-electronics sales slipped amid concerns over the “fiscal cliff.”
Overall sales at the company fell 20 percent, to $91 million. Comtech’s president and chief executive Fred Kornberg blamed the slowdown on concerns that lawmakers will not reach a deal on government spending, leading to automatic massive defense cuts.
“We believe that the U.S. government’s failure to resolve the “fiscal cliff” has resulted in increased uncertainty throughout our customer base,” Kornberg said in a statement.
Comtech said it expected revenue to continue sagging in 2013, predicting its full-year sales would be between $350 million and $365 million. The company earlier had predicted 2013 sales to be between $375 million and $395 million.
Company shares fell 12 percent in after-hours trading, to $22.58 per share.
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.
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