Comtech Telecommunications Corporation (CMTL) has reported an 165.95 percent jump in profit for the quarter ended Jan. 31, 2017. The company has earned $6.58 million, or $0.28 a share in the quarter, compared with $2.48 million, or $0.15 a share for the same period last year. Revenue during the quarter surged 97.70 percent to $139.03 million from $70.32 million in the previous year period. Gross margin for the quarter contracted 359 basis points over the previous year period to 38.27 percent. Total expenses were 90.76 percent of quarterly revenues, down from 95.47 percent for the same period last year. This has led to an improvement of 471 basis points in operating margin to 9.24 percent.
Operating income for the quarter was $12.85 million, compared with $3.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.49 million compared with $9.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 347 basis points in the quarter to 9.70 percent from 13.17 percent in the last year period.
In commenting on the Company's performance during the second quarter of fiscal 2017, Fred Kornberg, president and chief executive officer, noted "This was a very busy and successful quarter for our Company and we are making progress on all fronts. We are pleased with our fiscal 2017 year-to-date results and are focused on carrying this momentum into the second half of fiscal 2017."
Working capital drops significantly
Comtech Telecommunications Corporation has witnessed a decline in the working capital over the last year. It stood at $121.64 million as at Jan. 31, 2017, down 45.11 percent or $99.97 million from $221.61 million on Jan. 31, 2016. Current ratio was at 1.78 as on Jan. 31, 2017, down from 4.70 on Jan. 31, 2016. Cash conversion cycle (CCC) has decreased to 79 days for the quarter from 176 days for the last year period. Days sales outstanding went down to 61 days for the quarter compared with 74 days for the same period last year.
Days inventory outstanding has decreased to 38 days for the quarter compared with 136 days for the previous year period. At the same time, days payable outstanding went down to 20 days for the quarter from 35 for the same period last year.
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