TECH - Comtech (CMTL) - Q4 Operating Results

Q4 Results. Revenue of $145.8 million, down from $149.7 million last year. Adjusted EBITDA of $26.4 million, up from $23.5 million in 4Q20. GAAP EPS of $0.28 versus $0.04 and Non-GAAP EPS of $0.23 versus $0.21. We had forecast revenue of $150 million, adjusted EBITDA of $25 million, GAAP EPS of $0.24 and non-GAAP EPS of $0.30.Bookings, Backlog. Bookings for the quarter were $168.2 million, resulting in a book-to-bill ratio for the quarter of 1.15x. Backlog at the end of the quarter totaled $658.9 million, up from $620.9 million at the end of fiscal 2020. Including contracts in place, but not in backlog, Comtech had revenue visibility of about $1.1 billion as of July 31, 2021.New CEO. Comtech announced current President and COO Michael Porcelain will assume the CEO mantle by the end of calendar 2021, replacing long-serving CEO Fred Kornberg who will become an advisor to the Company and continue as a director. We view the change positively.Updated Projections. Management provided full year guidance of revenue of $580-$600 million and adjusted EBITDA of $70-76 million, with the first quarter at $115 million and $3 million, respectively. We will go with management's 1Q21 projection of $115 million and $3 million, respectively, with a net loss of $6 million, or $0.23 per share. For the full year, we are projecting revenue of $580 million, adjusted EBITDA of $75 million, and net income of $21.2 million, or $0.79 per share.Reducing to Market Perform. Given expectations for difficult comparisons during the first half of fiscal 2022, we are lowering our rating to Market Perform from Outperform and removing our price target. While we continue to believe in the long-term prospects of the Company, we think the shares will remain in a narrow range until positive operating momentum materializes. Read More >>