Comtech Q1 Profit Tops Estimate; Revenue Falls Short

(RTTNews) - Comtech Telecommunications Corp. (CMTL) reported net income for the first quarter of $5.2 million or $0.32 per share, compared to $5.3 million or $0.28 per share for the year-ago quarter.

Excluding expenses of $0.6 million associated with the company's strategic alternatives analysis, adjusted net income for the latest quarter was $5.6 million or $0.34 per share.

Net sales for the first quarter fell to $76.4 million from $83.4 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.29 per share on revenue of $78.84 million for the first quarter. Analysts' estimates typically exclude special items.

The company also announced that it is tightening its fiscal 2015 revenue guidance which is now expected to range from $355 million to $365 million, compared to its prior guidance of $355 million and $370 million. Despite incurring $0.6 million of expenses associated with the company's strategic alternatives analysis, the company maintained its fiscal 2015 earnings per share guidance range of $1.70 to $1.86. Analysts currently expect the company to earn $1.79 per share on revenue of $359.67 million for the fiscal year 2015.

The company also said it expects its second quarter financial results to be similar to the first quarter. Growth in fiscal 2015 will be heavily weighted towards the second half of the fiscal year, with the fourth quarter of fiscal 2015 being the peak quarter, by far, the company noted.