Comtech Telecommunications Corp (NASDAQ:CMTL) shares are trading higher by about 18% after it reported Q4 results.
The company posted revenue of $148.81 million, up from $126.98 million, beating the consensus of $140.13 million.
Revenues in the Satellite and Space Communications segment rose 22.7% Y/Y to $94.2 million, mainly aided by higher net sales of the troposcatter and SATCOM solutions to U.S. government and international customers and solid-state RF microwave high-power amplifiers and control components.
Also, the Terrestrial and Wireless Networks segment revenue grew 8.8% Y/Y to $54.6 million, aided by trusted location and messaging solutions, emergency call handling services, and NG911 solutions and services.
Net bookings stood at $142.6 million, with a book-to-bill ratio of 0.96x.
As of July 31, 2023, the backlog stood at $662.2 million.
Adjusted EBITDA came in at $18.9 million, higher from $12.7 million a year ago, with margins of 12.7% from 10.0% the prior year. This was led by its One Comtech lean initiatives implemented in H2 FY23.
Adjusted EPS of $0.29 surpassed the consensus of $0.17.
As of July 31, 2023, cash and cash equivalents stood at $19.0 million.
Outlook: CMTL expects Q1 FY24 sales growth of about 1%-4% sequentially and an adjusted EBITDA margin of 11%-13%.
Asset Sale: Concurrent with the earnings release, CMTL inked a deal with Stellant Systems, Inc. to sell its Power Systems Technology product line for $40 million.
Price Action: CMTL shares are up 17.94% at $9.60 premarket on the last check Friday.
