Comtech reported third quarter revenue of $106.0 million and a net loss per share of $0.47, missing analyst expectations. The company announced a definitive agreement to sell the majority of its Satellite and Space Communications business for $157.5 million to focus on public safety technologies.
Key Highlights
- The company announced the sale of most of its Satellite and Space Communications business to an affiliate of Gilat for a total of $157.5 million.
- Gross margin expanded to 34.0%, up from 30.7% in the prior year period, attributed to phasing out low-margin contracts and improved operational efficiency.
- The company achieved its fifth consecutive quarter of positive operating cash flow, reporting GAAP cash flows from operations of $6.1 million.
- Net bookings were $70.5 million, resulting in a book-to-bill ratio of 0.67x, with total backlog ending the quarter at $696.1 million.