Comtech Q4 Results Top Estimates, Guides 2015 In Line

(RTTNews) - Comtech Telecommunications Corp. (CMTL) reported Thursday a profit for the fourth quarter that increased from last year, reflecting lower interest expense and sales growth. Both earnings per share and quarterly sales topped analysts' expectations. The company also provided initial earnings and revenue guidance for the full-year 2015, in line with Street view.

"We are extremely pleased with our financial results in fiscal 2014. As we look to fiscal 2015, we see momentum continuing and expect that fiscal 2015 will be a year of growth, both on the top and bottom lines," President and CEO Fred Kornberg said in a statement.

Melville, New York-based Comtech posted net earnings of $7.99 million or $0.48 per share for the fourth quarter, higher than $5.16 million or $0.28 per share in the prior-year quarter.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased to $89.38 million from $84.41 million in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $88.29 million.

The company attributed the sales growth to higher sales at its tecommunications transmission and RF microwave amplifiers segments, partially offset by lower sales at its mobile data communications segment.

Interest expense for the quarter was $0.30 million, compared to $2.01 million a year ago.

Total bookings for the quarter were $62.1 million, sharply lower than last year's $144.0 million. Backlog at the end of the quarter stood at $133.4 million, compared to $189.7 million at the end of the year-ago quarter.

Further, Comtech said its Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on November 19 to shareholders of record at the close of business on October 24, 2014. The board is currently targeting annual dividend payments aggregating $1.20 per share.

Looking ahead to fiscal 2015, the company now expects earnings in a range of $1.70 to $1.86 per share on projected revenues between $355 million and $370 million. Street is currently looking for full-year 2015 earnings of $1.79 per share on annual revenues of $361.67 million.

The company's noted that the guidance does not include any expenses or impact associated with its ongoing strategic alternative analysis, which began in late August. It has been exploring strategic alternatives to enhance shareholder value, including a possible merger or sale of the company.

The company has retained Citi as its financial advisor and Proskauer Rose LLP as its legal advisor in connection with the foregoing.

Comtech makes satellite-based communications equipment for commercial and government customers.

CMTL closed Thursday's regular trading session at $36.24, down $1.01 or 2.71% on a volume of 0.17 million shares.