Comtech Telecommunications Corp. Announces Record Results for Fiscal Year 2003 Fourth Quarter and Full Year

Business Wire,  Sept 23, 2003  

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Business Editors/High-Tech Writers

MELVILLE, N.Y.--(BUSINESS WIRE)--Sept. 23, 2003

Comtech Telecommunications Corp. (Nasdaq: CMTL) today reported its results for the fourth quarter and fiscal year ended July 31, 2003. Net sales for the fourth quarter of fiscal 2003 were $51.7 million, compared to $28.5 million in fiscal 2002. Fourth quarter net income was $3.6 million, or $0.27 per diluted share, in fiscal 2003, as compared to a net loss in the fourth quarter of fiscal 2002 of $0.3 million, or $0.03 per diluted share. The fourth quarter of fiscal 2002 included (i) a non-recurring charge of $2.2 million for acquired in-process research and development in connection with the acquisition of certain assets and liabilities of Advanced Hardware Architectures, Inc. in July 2002 and (ii) a tax benefit relating to research and experimentation credits. Excluding the impact of such items, fourth quarter net income for fiscal 2002 was $0.5 million, or $0.05 per diluted share. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $7.6 million for the fourth quarter of fiscal 2003 and $2.7 million for the fourth quarter of fiscal 2002, after adjusting for the in-process research and development charge.

Net sales for fiscal 2003 were $174.0 million and net income was $9.7 million, or $0.80 per diluted share, compared to net sales of $119.4 million and net income of $1.1 million, or $0.10 per diluted share, in fiscal 2002. Excluding the impact of the in-process research and development charge and the tax benefit discussed above, net income for fiscal 2002 was $2.0 million, or $0.17 per diluted share. EBITDA was $23.1 million for fiscal 2003 and $10.8 million for fiscal 2002, after adjusting for the in-process research and development charge.

Reference is made to the attached tables for further financial information, including a reconciliation of non-GAAP financial information to GAAP.

Backlog as of July 31, 2003 was $100.1 million compared to $44.1 million a year earlier.

Fred Kornberg, President and Chief Executive Officer, observed, "Fiscal 2003 was a truly remarkable year for our Company. We achieved record levels of sales, bookings, backlog, EBITDA, profits and earnings per share in an economy that continues to struggle. Once again, all of our segments were profitable."

Mr. Kornberg added, "Our record results in fiscal 2003 reflect increased demand from the U.S. Army logistics and battlefield commands for our mobile data communications products and services, as well as increased interest in our over-the-horizon microwave systems. In addition, we have recently seen signs of strengthening in our satellite earth station product lines."

In commenting on fourth quarter results, Mr. Kornberg noted, "The fourth quarter of fiscal 2003 was stronger than expected as sales and orders received in our mobile data communications segment continued to far exceed our expectations. Activity in our telecommunications transmission segment also contributed to an outstanding fourth quarter."

Mr. Kornberg concluded, "During the fourth quarter of fiscal 2003, we also sold 2.1 million shares of common stock in a private placement transaction. The net proceeds of $38.2 million were used to prepay all of our long-term debt, which will reduce our interest expense going forward. We ended fiscal 2003 with no long-term debt and $48.6 million of unrestricted cash. In addition, the 2.1 million shares issued in the private placement, combined with our three-for-two stock split in July, significantly increased our shares outstanding."

Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company conducts its business through three complementary segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications. The Company offers niche products, systems and services where it believes it has technological, engineering, systems design or other expertise that differentiate its product offerings.

The Company has scheduled an investor conference call for 11:30 AM (ET) on Tuesday, September 23, 2003. Investors and the public are invited to access a live webcast of the conference call from the news section of the Comtech web site, www.comtechtel.com. A replay of the webcast will be available at the same location for 30 days following the conference call. Alternatively, investors can access the conference call by dialing (800) 903-0247 (domestic), or (785) 832-1508 (international) and using the conference I.D. of "Comtech." A replay of the conference call will be available for seven days by dialing (402) 220-1126. In addition, an updated investor presentation, including updated earnings guidance, will be available on our web site shortly after our conference call.

Certain information in this press release contains forward-looking statements, including but not limited to, information relating to the future performance and financial condition of the Company, the plans and objectives of the Company's management and the Company's assumptions regarding such performance and plans that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company's Securities and Exchange Commission filings identify many such risks and uncertainties, which include the following: