{"id":85691,"date":"2010-12-11T01:47:41","date_gmt":"2010-12-10T17:47:41","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/comtech-ceo-analysts-new-acquisitions-coming-soon\/"},"modified":"2010-12-11T01:47:41","modified_gmt":"2010-12-10T17:47:41","slug":"comtech-ceo-analysts-new-acquisitions-coming-soon","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/comtech-ceo-analysts-new-acquisitions-coming-soon\/","title":{"rendered":"Comtech CEO, Analysts: New Acquisitions Coming Soon"},"content":{"rendered":"

[12-10-10] Comtech<\/strong>\u2019s earnings-per-share in its first quarter of 2011 beat consensus estimates of 61 cents by 15 cents on revenues of $178 million, due to strong gains in the company\u2019s mobile data segment, Comtech reported in its latest financial results, issued Dec. 9.
\n    Comtech Mobile Data<\/strong> revenues benefited from $15 million to $20 million in ruggedized MTS computers that were \u2018pulled forward\u2019 from future quarters, resulting in the segment beating revenue estimates by about 33 percent.  \u201cWe now expect all remaining MTS computers to ship by the end of the second quarter instead of by the end of 2011,\u201d Comtech CEO Fred Kornberg said in a statement.
\n    Kornberg said that while Comtech expects its sales to the U.S. Army to decline in future quarters, the company, with $602.7 million in cash and cash equivalents on hand, will be looking at acquisitions soon. \u201cAppropriate acquisitions are high on our to-do list. While it is too early to forecast the outcomes, our acquisition initiatives are currently centered on a number of opportunities that we believe would complement our existing businesses and that would align with our long-term strategy,\u201d he said.
\n    Raymond James <\/strong>Analyst Chris Quilty told Satellite TODAY Insider<\/em> that Comtech has more than enough resources available to pursue Kornberg\u2019s strategy. \u201cComtech\u2019s $20 million stock repurchase during the quarter gives the company $400 million of net cash. That\u2019s plenty of firepower to pursue strategic acquisitions. Chastened by the failed CPI merger, management will presumably focus on more growth-oriented targets.\u201d
\n    Comtech\u2019s telecom revenues grew 5.3 percent year-over-year to $49 million in the first quarter, as Earth station bookings increased significantly from the fourth quarter of 2010. The results also included a $12.5 million break-up fee from the company\u2019s failed merger with CPI International earlier in the quarter.
\n    However, Comtech\u2019s 2011 first quarter bookings fell to $107.5 million compared to $120.6 million reported in the first quarter of 2010.  The company\u2019s backlog also fell from $338.1 million at the end of July to $267.4 million at the end of October.
\n    But, Kornberg affirmed his company\u2019s previous forecast that Comtech\u2019s 2011 operating profit will be \u201ccomparable to FY10.\u201d Quilty said Comtech can exceed this forecast by taking follow-on MTS\/BFT orders, improving Earth station revenues\/margins and targeted cost reductions.
\n    \u201cComtech\u2019s better-than-expected results were driven by smart managerial decisions. Comtech\u2019s management began implementing a series of cost reduction actions during the first quarter, including headcount reductions across all three business segments. Cuts were especially steep in the mobile data segment due to the recent loss of the BFT-2 contract. But, mobile data EBITDA margins surged more than 10 points to 23.6 percent \u2013 its best performance in two years \u2013 despite heavy shipments of low margin MTS computers. We suspect that cost reduction efforts along, with some favorable product mix, which might have included core MTS shipments, aided the results.\u201d<\/p>\n

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[12-10-10] Comtech\u2019s earnings-per-share in its first quarter of 2011 beat consensus estimates of 61 cents by 15 cents on revenues of $178 million, due to strong gains in the company\u2019s mobile data segment, Comtech reported in its latest financial results, issued Dec. 9.     Comtech Mobile Data revenues benefited from $15 million to $20 million […]<\/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-85691","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/85691"}],"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=85691"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/85691\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=85691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=85691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=85691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}