TECH - Comtech (CMTL) - Fiscal First Quarter Results In-line

1Q22 Results. Revenue of $116.8 million, down from $135.2 million last year, but modestly above management guidance. Adjusted EBITDA of $5.5 million, versus $14.3 million in 1Q21. GAAP EPS loss of $0.43 versus loss of $3.39 and Non-GAAP loss of $0.15 versus net income of $0.15 per share. We had forecast revenue of $115 million, adjusted EBITDA of $3 million, and a GAAP net loss of $0.23 per share.Bookings/Backlog. Bookings for the quarter were $86.4 million, or a quarterly book-to-bill of 0.74x. Management continues to expect full year fiscal 2022 b-t-b to exceed 1.0x. Backlog at quarter's end totaled $628.5 million, up $23 million y-o-y. Revenue visibility is over $1.2 billion.Proxy Contest. The proxy contest with Outerbridge is coming to the end with the annual shareholder meeting and vote occurring on December 17th. Both sides continue to make their cases, although, reportedly, ISS sees value in the election of an director not sourced by the legacy board.Updated Projections. Management maintained its full year guidance of revenue of $580-$600 million and adjusted EBITDA of $70-76 million, with 2H22 stronger than 1H22. For 2Q22 we are maintaining our projected revenue of $125 million, but slightly lowering our adjusted EBITDA to $8.5 million, with a net loss of $0.13 per share. For the full year, we are projecting revenue of $581.8 million, adjusted EBITDA of $78.2 million, GAAP EPS of $0.48, and non-GAAP EPS of $0.82.Maintaining Market Perform. As we believe the Acacia offer to be insufficient and given our expectations for difficult comparisons during the first half of fiscal 2022, we are maintaining our Market Perform rating. While we continue to believe in the long-term prospects of the Company, based on our operating expectations and excluding the results of the proxy contest, we think the shares will remain in a narrow range until positive operating momentum materializes. Read More >>