Comtech sales more than double after acquisition
ComtechTelecommunications Corp. headquarters in Melville. Credit: Newsday / David Trotman-Wilkins
Comtech Telecommunications Corp. Wednesday reported that its fiscal first-quarter net sales more than doubled versus the prior year as a result of an acquisition, but the company swung to a loss in the quarter from a profit a year earlier.
The maker of telecommunications equipment for the military and civilian markets posted a net loss of $2.5 million, or 11 cents per diluted share, versus net income of $1.4 million, or 9 cents per diluted share, in the year-ago quarter.
Net sales in the first quarter were $135.8 million versus $64.1 million in the 2015 period. The increased revenue reflected the acquisition in February of TeleCommunication Systems Inc., based in Annapolis, Maryland.
Melville-based Comtech shares gained 6.4 percent to close Wednesday at $12.75 on the Nasdaq Stock Market, but reversed course in after-hours trading following the release of the earnings report when shares fell 11.8 percent to $11.25.
“Although international business conditions remain challenging, we are pleased with our first quarter fiscal 2017 results, which we view as a solid foundation for the rest of fiscal 2017,” Fred Kornberg, chairman, president and chief executive, said in a statement.
The company issued fiscal 2017 targets of about $600 million in revenue and diluted earnings per share of about 30 cents.
In September, Kornberg resumed his role as chief executive, replacing Stanton Sloane, who had held the job less than two years. Previously Kornberg had served as Comtech CEO for 38 years.
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.
Updated now Newsday travel writer Scott Vogel took the ferry over to Block Island for a weekend of fun.
Updated now Newsday travel writer Scott Vogel took the ferry over to Block Island for a weekend of fun.
