Comtech Telecommunications profit, sales fall
Fred Kornberg, president and chief executive at defense electronics contractor Comtech Telecommunications Corp. in Melville. (May 15, 2003) Credit: Newsday / Alejandra Villa
Comtech Telecommunications Corp., a Melville defense-electronics contractor, reported a sharp drop in third-quarter profits Thursday amid a sluggish global economy and reduced military spending in Washington.
Net income fell 53 percent, to $2.9 million, or 17 cents per share, during the three months through April, compared to the same period a year earlier. Sales dropped 30 percent to $69.9 million.
"Despite difficult market conditions, we are pleased with our overall third quarter results," Comtech president and chief executive Fred Kornberg said in a statement.
The company also lowered its financial guidance, saying it expected between $310 million and $320 million in revenue this year, down from $425 million in 2012.
Comtech designs and manufactures electronic products and systems used in satellite communications. Like many defense companies, Comtech Telecommunications' sales have dropped sharply since federal lawmakers failed to reach a budget deal, triggering across-the-board federal spending cuts in January known as the sequestration.
The company employs about 1,200 people at facilities in Massachusetts, California, Arizona and elsewhere.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
