Comtech Telecommunications (CMTL)

Management Discussion

• Net Sales. Consolidated net sales were $581.7 million and $616.7 million for fiscal 2021 and 2020, respectively, representing a decrease of $35.0 million, or 5.7%. The period-over-period decrease in net sales reflects lower net sales in our Government Solutions segment, partially offset by higher net sales in our Commercial Solutions segment. Net sales by operating segment are discussed below.
• Net sales in our Commercial Solutions segment were $360.1 million for fiscal 2021, as compared to $353.7 million for fiscal 2020, an increase of $6.4 million, or 1.8%. Our Commercial Solutions segment represented 61.9% of consolidated net sales for fiscal 2021 as compared to 57.4% for fiscal 2020. Our book-to-bill ratio (a measure defined as bookings divided by net sales) for this segment was 1.23. Period-to-period fluctuations in bookings are normal for this segment. As further discussed below, long-term demand for our Commercial Solutions segment's products and technologies appears strong and we believe fiscal 2022 net sales for this segment will be higher than the amount we achieved in fiscal 2021.
• Net sales of our satellite ground station technologies for fiscal 2021 were higher than fiscal 2020. Fiscal 2021 benefited from a nominal amount of sales related to our acquisition of UHP Networks Inc. ("UHP") on March 2, 2021, which extended our product offerings to include TDMA satellite modems. We believe UHP developed revolutionary technology, which has the potential to transform the growing Very Small Aperture Terminal ("VSAT") market, as demand for high-speed satellite-based networks are projected to grow significantly. As a result of the acquisition, we believe we are well positioned for long-term growth in this market.