Comtech Telecomm reports narrower loss, stronger outlook
Comtech Telecommunications raised its profit forecast for the fiscal year. Credit: Newsday / David Trotman-Wilkins
Shares of Comtech Telecommunications Corp. rose more than 3 percent Thursday after the maker of advanced communications systems reported a narrower net loss for the first quarter ended Oct. 31.
The Melville company also raised its profit forecast for the fiscal year, as it said orders were strong.
Comtech reported earnings after Wednesday’s market close. In trading Thursday, its shares rose 76 cents to $22.07. A year earlier, the shares sold for $10.55.
First quarter net sales were $121.6 million, down from $135.8 million in the 2016 period. But the company posted a net loss of $1.7 million, or 7 cents per diluted share, compared with $2.5 million, or 11 cents per diluted share, in the previous year’s period.
Comtech’s cost of goods produced declined by almost $10 million and its selling, general and administrative expenses were reduced by more than $4 million.
“During the quarter, we received a number of large strategic orders and experienced strong order flow across many of our product lines,” Fred Kornberg, Comtech president and chief executive, said in a statement. “Based on our current business momentum, fiscal 2018 is beginning to look like a very strong year.”
The company maintained its fiscal 2018 forecast of revenue in the range of about $550 million to $575 million, but increased its projected earnings to 44 to 46 cents per diluted share from a prior range of 41 to 44 cents per diluted share.
Comtech’s communications products are used in satellites, aircraft and in 911 systems.
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.
