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Comtech Telecom shares fall, recover after earnings, sales decline

Comtech Telecommunications Corp. Monday posted declines in net sales and net income for the fourth quarter as higher sales of microwave amplifiers failed to offset declines in telecommunications transmission and mobile data communications.

The Melville company reported a 31.5 percent decline in net income to $5.5 million for the quarter ended July 31, on a 13.3 percent decrease in net sales to $77.5 million.

Shares of Comtech fell more than 16 percent Tuesday morning to $21.96 on the Nasdaq Market.

The company, whose customers include energy giants like Royal Dutch Shell, and U.S. and foreign military forces, projected that sales for fiscal 2016 would be in line with those in fiscal 2015. The fiscal 2016 forecast calls for net sales of $300 million to $310 million, and diluted earnings per share of $1.34 to $1.50.

Chief executive Stanton Sloane said global market forces took a toll on Comtech in fiscal 2015 and the next fiscal year looks no better.

"Our fiscal 2015 performance reflects the fact that many of our international customers have been impacted by the strength of the U.S. dollar and by the plunge in oil prices," he said. "As we look to fiscal 2016, we do not believe that market conditions will meaningfully improve."

The company scheduled an investor conference call for Tuesday morning.

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