Company profile

Ticker
CMTL
Exchange
CEO
Fred Kornberg
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
112139466

CMTL stock data

(
)

Calendar

4 Dec 19
11 Dec 19
31 Jul 20

News

Company financial data Financial data

Quarter (USD) Oct 19 Jul 19 Apr 19 Jan 19
Revenue 170.27M 176.37M 170.45M 164.13M
Net income 6.39M 6.14M 7.61M 7.83M
Diluted EPS 0.26 0.25 0.31 0.32
Net profit margin 3.75% 3.48% 4.47% 4.77%
Operating income 9.26M 10.41M 11.3M 12.41M
Net change in cash 1.3M 424K -845K 3.05M
Cash on hand 46.87M 45.58M 45.15M 46M
Cost of revenue 106.7M 112.36M 106.03M 102.89M
Annual (USD) Jul 19 Jul 18 Jul 17 Jul 16
Revenue 671.8M 570.59M 550.37M 411M
Net income 25.04M 29.77M 15.83M -7.74M
Diluted EPS 1.03 1.24 0.67 -0.46
Net profit margin 3.73% 5.22% 2.88% -1.88%
Operating income 41.41M 35.08M 37.04M -576K
Net change in cash 2.09M 1.64M -24.96M -84.15M
Cash on hand 45.58M 43.48M 41.84M 66.81M
Cost of revenue 424.36M 346.65M 332.18M 239.77M

Financial data from company earnings reports

Financial report summary

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Competition
MicroneticsCpi International
Risks
  • Forward-Looking Statements
  • Our fiscal 2020 business outlook is difficult to forecast and operating results are subject to significant fluctuations and are likely to be volatile.
  • If global economic business and political conditions deteriorate as compared to the current environment, it could have a material adverse impact on our business outlook and our business, operating results and financial condition.
  • We have incurred indebtedness under a Credit Facility and may not be able to service that debt in the future and we must maintain compliance with various covenants that impose restrictions on our business.
  • Future acquisitions of companies and investments could prove difficult to integrate, disrupt our business, dilute stockholder value or adversely affect operating results or the market price of our common stock.
  • Our business is highly dependent on the budgetary decisions of our government customers, including the U.S. government (including prime contractors to the U.S. government), and changes in the U.S. government’s fiscal policies or budgetary priorities may have a material adverse effect on our business, operating results and financial condition.
  • Our contracts with the U.S. government are subject to unique business, commercial and government audit risks.
  • Our dependence on sales to international customers exposes us to unique business, commercial and export compliance audit risks.
  • Our investments in recorded goodwill and other intangible assets could be impaired as a result of future business conditions, a deterioration of the global economy or if we change our reporting unit structure.
  • We could be negatively impacted by a systems failure, lack of or failure of a redundancy, security breach through cyber attack, cyber intrusion or otherwise, by other significant disruption of our IT networks or those we operate for certain customers, or third-party data center facilities, servers and related systems. If such occurs in some cases, we may have to reimburse our customers for damages that they may have incurred, pay contract penalties, or provide refunds.
  • The measures we have implemented to secure information we collect and store or enable access to may be breached, which could cause us to breach agreements with our partners and expose us to potential investigation and penalties by authorities and potential claims for contract breach, product liability damages, credits, penalties or termination by persons whose information was disclosed.
  • Our U.S. federal, state and foreign tax returns are subject to audit and a resulting tax assessment or settlement could have a material adverse effect on our business, results of operations and financial condition. Significant judgment is required in determining the provision for income taxes.
  • We have significant operations in Arizona, Florida, California, Washington State, Maryland, New York and other locations which could be materially and adversely impacted in the event of a terrorist attack and government responses thereto or significant disruptions (including natural disasters) to our business.
  • We may be subject to environmental liabilities.
  • The success of our business is dependent on compliance with FCC rules and regulations and similar foreign laws and regulations.
  • Regulation of the mobile communications industry and VoIP is evolving, and unfavorable changes or our failure to comply with existing and potential new legislation or regulations could harm our business and operating results.
  • All of our business activities are subject to rapid technological change, new entrants, the introduction of other distribution models and long development and testing periods each of which may harm our competitive position, render our product or service offerings obsolete and require us to continuously develop technology and/or obtain licensed technology in order to compete successfully.
  • Our business is highly competitive, we are reliant upon the success of our partners, and some of our competitors have significantly greater resources than we do, which could result in a loss of customers, market share and/or market acceptance.
  • Contract cost growth on our firm fixed-price contracts, including most of our government contracts, cost reimbursable type contracts and other contracts that cannot be justified as an increase in contract value due from customers exposes us to reduced profitability and the potential loss of future business and other risks.
  • Ongoing compliance with the provisions of securities laws, related regulations and financial reporting standards could unexpectedly materially increase our costs and compliance related expenses.
  • Our backlog is subject to customer cancellation or modification and such cancellation could result in a decline in sales and increased provisions for excess and obsolete inventory.
  • We face a number of risks relating to the expected growth of our business. Our business and operating results may be negatively impacted if we are unable to manage this growth.
  • We rely upon various third-party companies and their technology to provide services to our customers and if we are unable to obtain such services at reasonable prices, or at all, our gross margins and our ability to provide the services of our wireless applications business could be materially adversely affected.
  • Indemnification provisions in our contracts could have a material adverse effect on our consolidated results of operations, financial position, or cash flows.
  • Protection of our intellectual property is limited and pursuing infringers of our patents and other intellectual property rights can be costly.
  • Third parties may claim we are infringing their intellectual property rights and we could be prevented from selling our products, or suffer significant litigation expense, even if these claims have no merit.
  • A change in our relationship with our large wireless carrier customers could have a material adverse effect.
  • Potential future business combinations among wireless network operators could result in a loss of revenue for our business.
  • If our wireless carrier partners change the pricing and other terms by which they offer our products to their end-customers or do not continue to provide our services at all or renegotiate lower fees with us, our business, results of operations, and financial condition could be suddenly and materially adversely affected.
  • Our stock price is volatile.
  • Future issuances of our shares of common stock could dilute a stockholder's ownership interest in Comtech and reduce the market price of our shares of common stock.
  • Provisions in our corporate documents and Delaware law could delay or prevent a change in control of Comtech.
Management Discussion
  • Net Sales. Consolidated net sales were $671.8 million and $570.6 million for fiscal 2019 and 2018, respectively, representing a significant increase of $101.2 million, or 17.7%. The significant period-over-period increase in net sales reflects higher net sales in both our Commercial and Government Solutions segments. Net sales by operating segment are discussed below.
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