Comtech Telecommunications Corp. reported sharply higher fourth quarter sales as a result of the acquisition of TeleCommunication Systems Inc. in February, but lower net income.
Net sales were $152.4 million for the period ended July 31 versus $77.5 million in the year-ago quarter.
The Melville maker of advanced communication systems for commercial and government markets reported net income of $2.7 million, or 14 cents per diluted share, compared with $5.5 million, or 34 cents per diluted share, in the 2015 quarter.
Interest expense rose to $4.1 million in the quarter from $73,000 in the year-earlier period. And Comtech booked $600,000 in pre-tax acquisition plan expenses in the quarter related to its purchase of TeleCommunication Systems.
The company said in a news release issued after the market close Thursday that it expects an operating loss in the first quarter of fiscal 2017, followed by profitable quarters for the rest of the fiscal year.
Shares of Comtech fell 7.4 percent Friday to close at $11.72 on the Nasdaq Stock Market. They are down more than 40 percent year to date.
President and chief executive Fred Kornberg said in the statement, “The fundamentals of our two business segments are solid and we see strong demand for our product and service offerings, as evidenced by recent order activity.”
In September, Kornberg, 80, replaced Stanton Sloane, 66, as chief executive. Kornberg had served as CEO for 38 years before Sloane took the post in December 2014.