Pandemic Takes Toll on Comtech Q3 Sales
On Wednesday, Comtech Telecommunications Corp., reported its operating results for its Third Quarter (Q3), which ended April 30, 2020, reporting $135 million in net sales, a 20% decrease from the same time period in 2019. The company reported a net loss of about $4 million, compared to $7.6 million net income over the same time period in 2019.
The company said it has experienced “significant order delays and lower net sales,” due to the COVID-19 pandemic. Comtech implemented cost saving measures, including reducing global headcount by approximately 10% and reducing salaries. Comtech’s Commercial Solutions segment said its satellite ground station technologies product line, which has historically required significant in-person meetings to generate new business, has been most impacted by restrictions on business activities.
Fred Kornberg, Chairman of the Board and CEO said: “No doubt, the third quarter was challenging for Comtech. But I have never been prouder of our employees for their dedication and commitment to our customers. I am exceedingly grateful for the trust our customers continue to place in Comtech’s industry leading technology and expertise. Looking forward, I remain enthusiastic about our efforts on a number of large strategic orders and we are laser focused on positioning the company for a strong fiscal 2021.”
Comtech also announced it has amended the purchase price of satellite ground station tech company UHP Networks, Inc., which was originally announced in November 2019. The total aggregate purchase price has been reduced by approximately 24% from $50 million to $38 million. The transaction is subject to regulatory approval.