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Comtech Telecom shares fall more than 14% after stock offering

Technician Charles Dziomba tests an amplifier Thursday May

Technician Charles Dziomba tests an amplifier Thursday May 15, 2003 at Comtech Telecomunications Corp. in Melville. Credit: Newsday / Alejandra Villa

Shares of Comtech Telecommunications Corp. fell more than 14 percent to $13.83 Friday after the company priced a 7.15 million-share stock offering $2.11 lower than Thursday’s closing price of $16.11.

Michael Porcelain, chief financial officer and senior vice president of the Melville-based maker of advanced communications equipment for military and civilian markets, said the $14 per share offering swelled the number of shares outstanding, previously at 16.5 million, by 43 percent.

The executive said it’s not unusual for small-capitalization companies to price such deals below the market price.

“It’s in the normal range for a small-cap company,” he said. “There was strong demand. The deal was oversubscribed.”

Porcelain said that $75 million of the $100 million in proceeds will be used to pay down debt and the remaining $25 million will be used for acquisitions and general corporate purposes.

The offering, made through lead underwriters Citigroup and Jefferies LLC, is scheduled to close on June 22.

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