Wednesday, Comtech Telecommunications Corp. (CMTL) reported a significant decline in profit for the fourth quarter, reflecting lower sales and a rise in costs and expenses.
Net income for the fourth quarter declined to $6.18 million or $0.21 per share from $16.96 million or $0.61 per share in the previous year. Results for the quarter includes amortization charges of $2.53 million and tax effect of stock-based compensation expense of $834 thousand.
On an adjusted basis, net income was $7.87 million or $0.26 per share, compared to $18.80 million or $0.67 per share last year.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined to $122.03 million from $126.47 million last year. Analysts expected revenues of $127.09 million for the quarter.
Cost of sales rose to $75.09 million from $68.87 million a year ago. Gross profit was down to $46.94 million from $57.60 million in the previous year.
Total expenses increased to $36.31 million from $32.73 million in the earlier year. Research and development expenses rose to $11.95 million from $10.04 million a year ago. Amortization charges were $2.20 million, compared to $0.46 million in the previous year.
Interest expense increased to $1.75 million from $0.67 million and interest income declined to $0.43 million from $2.44 million last year.
Backlog as of July 31, 2009 was $549.8 million compared to $201.1 million as of July 31, 2008. Bookings for the three months ended July 31, 2009 were $80.8 million, compared to $141.7 million in the fourth quarter of the previous year.
For the fiscal year 2009, GAAP net income declined to $49.56 million or $1.73 per share from $76.43 million or $2.76 per share last year. Non-GAAP net income was $62.1 million, or $2.14 per share, compared to Non-GAAP net income of $83.4 million, or $2.98 per share in 2008. Analysts expected earnings of $1.71 per share for the full year.
Net sales for the year rose to $586.37 million from $531.63 million a year ago, however missed analysts' guidance of $591.54 million.
CMTL closed Wednesday's regular trading at $34.08, down 0.07 or 0.20%, on a volume of 327K shares on the Nasdaq. In after hours, the stock further went down 0.92 or 2.70%, trading at $35.00.
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