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Comtech Telecommunications sales rise on acquisition

Comtech Telecommunications Corp., in Melville.

Comtech Telecommunications Corp., in Melville. Credit: Newsday / David Trotman-Wilkins

Melville-based Comtech Telecommunications Corp. Wednesday posted second quarter net sales of $139 million, nearly doubling the prior year’s total as a result of the acquisition TeleCommunication Systems Inc. in February 2016.

Net income for the three months ended Jan. 31 was $6.6 million, or 28 cents per diluted share, versus $2.5 million, or 15 cents per diluted share, for the year-earlier quarter.

Comtech said that the settlement of two court cases involving TeleCommunication Systems intellectual property contributed 27 cents per diluted share in the second quarter.

Comtech bought TeleCommunication Systems, based in Annapolis, Maryland, for $430.8 million.

Fred Kornberg, Comtech president and chief executive, said in a statement the second quarter was “successful” and the company is “focused on carrying this momentum into the second half of fiscal 2017.”

Comtech trimmed its fiscal 2017 revenue forecast from $600 million to a range of $570 million to $580 million. The company updated its earnings per share target for the fiscal year to about 68 cents.

Comtech makes advanced communications products for military and civilian markets.

The company, which released the earnings report after the stock market close, scheduled an investor conference call for 8:30 a.m. Thursday.

Comtech shares rose 0.8 percent to close Wednesday at $11.13 on the Nasdaq Global Select Market, and climbed more than 3 percent in after-hours trading. The shares are down about 48 percent in the last 12 months.


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