- Comtech Telecommunications (NASDAQ:CMTL) reported a sequential growth of 1.4% in FQ3 consolidated net sales to $122.1M.
- Adj. EBITDA of $11.2M, a 14.3% sequential increase.
- Gross margins improved sequentially ten basis points to 38.2%.
- GAAP net loss attributable to common stockholders was $1.7M, and included $0.9M of strategic emerging technology costs for next-generation satellite technology.
- For other details of outlook, backlog and new bookings; read here.
- The company sees revenue visibility of ~$1.2B which marks the sum of its $602.3M backlog plus the total unfunded value of certain multi-year contracts that it has received.
- Cash flows used in operating activities of $1.1M
- In the commercial solutions segment, two NG-911 opportunities which the company expected to generate bookings and revenue in FY22, are now in holding patterns.
- In Government Solutions segment, a large customer in Asia balked at paying a significant price increase for solutions valued at $10M+ that the company previously expected to book and ship in Q4.
- The company sees supply chain constraints to remain as a challenge and also inflation is a significant issue.
- Separately, Citi has lowered its price target on CMTL to $14 from $20 earlier.
- Shares trading 14% down premarket.