{"id":85217,"date":"2011-03-14T19:50:45","date_gmt":"2011-03-14T11:50:45","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/comtech-second-quarter-telecom-revenue-boost-surprises-analysts\/"},"modified":"2011-03-14T19:50:45","modified_gmt":"2011-03-14T11:50:45","slug":"comtech-second-quarter-telecom-revenue-boost-surprises-analysts","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/comtech-second-quarter-telecom-revenue-boost-surprises-analysts\/","title":{"rendered":"Comtech Second-Quarter Telecom Revenue Boost Surprises Analysts"},"content":{"rendered":"

[03-14-11] Comtech<\/strong>\u2019s 2011 second-quarter revenues of $163 million and EBITDA of $32.2 million beat analysts\u2019 projections by 6.5 percent and 22 percent, respectively.
\n    In its latest financial results issued March 11, the company said it enjoyed a strong sequential improvement in telecom revenues and margins and generated a better-than-expected performance in its Mobile Data segment.
\n    Comtech\u2019s second-quarter telecom revenues increased from $58.5 million in 2010 to $62.3 million in 2011. Comtech said the improved telecom revenues helped offset lower sales in its mobile data communications and RF microwave amplifiers segments.
\n     Raymond James<\/strong> Analyst Chris Quilty told Satellite TODAY Insider <\/em>that the company\u2019s telecom sales rebound could erase concerns that the segment had been beset by deep-seated problems. \u201cSegment margins were ahead of expectations and showed a significant sequential improvement \u2014 24.8 percent against the expected 16.9 percent \u2014 due to lower headcount and improved mix. Management has previously stated that it was comfortable with full-year EBIT margins in the low 20s,\u201d Quilty said.
\n    While Comtech\u2019s Mobile Data segment saw second-quarter revenues decline from $84.2 million in 2010 to $76.7 million in 2011, its results still exceeded analysts\u2019 projections. For the quarter, the segment\u2019s revenue was 8.4 percent above expectations, while EBITDA margins were 18.7 percent above projections. However, the company\u2019s second-quarter net income decreased slightly to $16.1 million compared with $16.3 million from the same period a year ago.
\n    In a 10-Q filing attached to the second-quarter results, Comtech said there is a growing possibility that its MTS-3 contract with the U.S. Army<\/strong> could be folded into the Blue Force Tracking (BFT) program, which could prevent the company from competitively bidding on the program. The filing also stated that the company is in discussions with the Army regarding a new multi-year BFT-1 contract, which is expected by December. The contract would enable Comtech customers to continue purchasing both its MTS and BFT services.
\n    Quilty said that winning the new BFT-1 award could generate a much-needed boost to the company\u2019s military sector position. \u201cThe company\u2019s diminishing MTS opportunity does not surprise me. Comtech\u2019s management had previously suggested that it might be able to retain the MTS program, but we have long modeled the MTS program to wind down over the next several years.\u201d
\n    While Quilty said that analysts and investors have been wary of Comtech\u2019s recent merger and acquisition strategy, Comtech President and CEO Fred Kornberg said in a statement that the company is focusing on acquisition opportunities to complement its existing businesses and help establish more stable footing. <\/p>\n

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[03-14-11] Comtech\u2019s 2011 second-quarter revenues of $163 million and EBITDA of $32.2 million beat analysts\u2019 projections by 6.5 percent and 22 percent, respectively.     In its latest financial results issued March 11, the company said it enjoyed a strong sequential improvement in telecom revenues and margins and generated a better-than-expected performance in its Mobile Data […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-85217","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/85217"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=85217"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/85217\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=85217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=85217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=85217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}