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Comtech Telecommunications Q3 Profit Declines; Cuts FY13 Revenue Outlook

Comtech Telecommunications Corp. (CMTL) reported third-quarter net income of $2.9 million or $0.17 per share, compared to $6.1 million or $0.29 per share in the comparable quarter last year.

On average, six analysts polled by Thomson Reuters expected the company to earn $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter dropped to $69.86 million from $99.79 million in the year-ago period, due mainly to lower net sales at mobile data communications and RF microwave amplifiers segments and, to a much lesser extent, the telecommunications transmission segment. Five analysts expected the company to generate revenues of $77.74 million for the quarter.

Looking forward to the fiscal 2013, the company is updating its guidance and expects GAAP earnings to be in the range of $0.86 per share to $0.92 per share and revenue in the range of $310.0 million to $320.0 million. Previously, the company expected earnings to be in the range of $0.80 per share to $0.92 per share and revenue in the range of $320.0 million to $330.0 million.

Analysts currently estimate earnings of $0.82 per share on revenues of $320.14 million for the year.

Separately, the company announced that its Board of Directors declared a quarterly cash dividend of $0.275 per share, payable on August 20, 2013 to shareholders of record at the close of business on July 19, 2013.

by RTTNews Staff Writer

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