Comtech Telecommunications reported its operating results for the fourth quarter and fiscal year ended July 31, 2016.
Article continues below
Q4 net sales were $152.4 million compared to $77.5 million for the three months ended July 31, 2015.
The period-over-period increase in net sales reflects incremental sales of approximately $85.4 million as a result of the acquisition of TeleCommunication Systems, partially offset by lower sales of legacy Comtech products. As previously announced, the TCS acquisition closed on February 23, 2016.
The company achieved bookings of approximately $202.8 million during the fourth quarter of fiscal 2016 which translates into a book-to-bill ratio (bookings divided by net sales) for the quarter of 1.33 compared with an average book-to-bill ratio of 0.96 for the prior three quarters
Backlog as of July 31, 2016 was $484.0 million.
Operating income was $7.5 million. During the fourth quarter, the company expensed $0.6 million of pre-tax acquisition plan expenses, related to the company's acquisition of TCS.
Excluding these expenses, Comtech would have reported operating income for the fourth quarter of $8.1 million
GAAP net income was $2.7 million, or $0.14 per diluted share, for the three months ended July 31, 2016.
Adjusted EBITDA was $18.8 million.
As of July 31, 2016 Comtech had $66.8 million of cash and cash equivalents which does not reflect the quarterly dividend payment of $7.0 million that was paid on August 19, 2016.
In June 2016, the company sold an aggregate of 7,145,000 shares of its common stock in a public offering resulting in net proceeds to the company of $95.0 million.
2016 fiscal year highlights
Net sales for the fiscal year ended July 31, 2016 were $411.0 million compared to $307.3 million for the fiscal year ended July 31, 2015.
The year-over-year increase in net sales reflects incremental sales of approximately $151.4 million as a result of the acquisition of TCS in the third fiscal quarter, partially offset by lower sales of legacy Comtech products.
The company achieved bookings of approximately $451.3 million during fiscal 2016 which translates into a book-to-bill ratio (bookings divided by net sales) for the year of 1.10.
Operating loss was $0.6 million for the fiscal year ended July 31, 2016. During the fiscal year ended July 31, 2016, we expensed $21.3 million of pre-tax acquisition plan expenses, almost all of which relate to the company's acquisition of TCS.
Excluding these expenses, we would have reported operating income for fiscal year ended July 31, 2016 of $20.7 million.
GAAP net loss was $7.7 million, or $(0.46) per diluted share, for the fiscal year ended July 31, 2016.
Adjusted EBITDA was $48.1 million for the fiscal year ended July 31, 2016. ■