Comtech reports sharply higher net sales for second quarter
Comtech Telecommunications Corp., a maker of equipment used in satellite and 911 systems, Wednesday reported sharply higher net sales in the second quarter and raised its fiscal year revenue forecast.
The Melville company's shares jumped 7 percent to $28.10 in after-hours trading.
The company posted net sales of $164.1 million for the quarter ended Jan. 31, a 22.7 percent increase, compared to the year-earlier period.
Net income of $7.8 million, or 32 cents per diluted share, fell short of the 2018 quarter, which was bolstered by a $13.3 million tax benefit.
In a statement, Comtech president and Chief Executive Fred Kornberg said the second quarter results "exceeded our expectations on almost every front."
The company increased its net sales target to a range of about $645 million to $660 million. The earlier forecast was $625 million to $640 million.
But the company lowered its earnings per share forecast to a range of 86 cents to 98 cents from a range of 95 cents to $1.08. The company said that change reflects various costs. including interest expenses.