Comtech Telecommunications Corp. today reported its operating results for the third fiscal quarter ended April 30, 2021 and updated its financial targets for fiscal 2021.
Fiscal 2021 third quarter highlights
Consolidated net sales of US$139.4 million and adjusted EBITDA of US$17.7 million (or 12.7 percent of consolidated net sales). Adjusted EBITDA, which significantly exceeded Comtech's expectation for its third quarter of fiscal 2021, is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure and is more fully defined below.
With bookings of US$115.9 million, the company achieved a book-to-bill ratio (a measure defined as bookings divided by net sales) of 0.83 during its third quarter of fiscal 2021. Backlog as of April 30, 2021 was US$636.5 million. The total value of multi-year contracts that Comtech has received is substantially higher than its reported backlog. When adding Comtech’s backlog and the total unfunded value of multi-year contracts that Comtech has received and for which it expects future orders, its revenue visibility approximates US$1.1 billion.
The company incurred an aggregate of US$5.3 million of acquisition plan expenses due to the April 2021 settlement of litigation related to the 2019 acquisition of GD NG-911 as well as the March 2021 closing of the UHP acquisition. The integration of UHP into Comtech’s satellite ground station product line is well underway, and it does not expect to incur any significant acquisition plan expenses for the remainder of fiscal 2021.
The company's annual effective income tax rate was 11.5 percent, excluding a net discrete tax expense of US$0.2 million.
Comtech reported GAAP operating income of US$2.4 million, GAAP net income of US$0.8 million and GAAP net income per diluted share (EPS) of US$0.03 for the third quarter of fiscal 2021. Non-GAAP operating income was US$8.9 million, Non-GAAP net income was US$6.8 million and Non-GAAP EPS was US$0.26. These Non-GAAP amounts exclude acquisition plan expenses, restructuring costs, COVID-19 related costs, strategic emerging technology costs for next-generation satellite technology and a net discrete tax expense. Non-GAAP amounts are reconciled to the most directly comparable GAAP financial measures in the table below.
Comtech generated GAAP operating cash flows of US$6.8 million during the third quarter and had US$39.2 million of cash and cash equivalents and total debt outstanding of US$215.0 million as of April 30, 2021.
Commenting on the company's third quarter fiscal 2021 performance, Fred Kornberg, Chairman of the Board and Chief Executive Officer, stated, "Thanks to the hard work of all of our team members, we achieved solid operating performance and have recently secured important contract awards that bode well for our future. We are continuing to invest in new state-of-the-art production and engineering facilities as well as new next-generation wireless technology solutions that we believe our customers will want in the post-COVID-19 pandemic economic recovery. Looking forward, we are confident that we will have a strong finish to fiscal 2021 and achieve growth in fiscal 2022."
Comments