Comtech Telecommunications Corporation (CMTL) swung to a net profit for the quarter ended Apr. 30, 2017. The company has made a net profit of $4.42 million, or $ 0.19 a share in the quarter, against a net loss of $14.36 million, or $0.89 a share in the last year period. Revenue during the quarter went up marginally by 2.90 percent to $127.79 million from $124.19 million in the previous year period. Gross margin for the quarter contracted 33 basis points over the previous year period to 41.05 percent. Operating margin for the quarter period stood at positive 7.94 percent as compared to a negative 10.79 percent for the previous year period.
Operating income for the quarter was $10.15 million, compared with an operating loss of $13.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $18.10 million compared with $12.46 million in the prior year period. At the same time, adjusted EBITDA margin improved 413 basis points in the quarter to 14.16 percent from 10.03 percent in the last year period.
In commenting on the Company's performance during the third quarter of fiscal 2017, Fred Kornberg, president and chief executive officer, noted: "I am pleased with our third quarter performance on many fronts as we march toward a strong finish to what is turning out to be a successful year." Mr. Kornberg added: "Although we have just started our fiscal 2018 business planning process, we are seeing positive signs across almost all aspects of our business and believe that fiscal 2018 is shaping up to be a great year."
Working capital declines
Comtech Telecommunications Corporation has witnessed a decline in the working capital over the last year. It stood at $114.29 million as at Apr. 30, 2017, down 21.96 percent or $32.15 million from $146.45 million on Apr. 30, 2016. Current ratio was at 1.75 as on Apr. 30, 2017, down from 1.96 on Apr. 30, 2016. Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 125 days for the last year period. Days sales outstanding went down to 61 days for the quarter compared with 68 days for the same period last year.
Days inventory outstanding has decreased to 40 days for the quarter compared with 83 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Comtech Telecommunications Corporation has recorded a decline in total debt over the last one year. It stood at $230.77 million as on Apr. 30, 2017, down 34.29 percent or $120.43 million from $351.20 million on Apr. 30, 2016. Total debt was 26.72 percent of total assets as on Apr. 30, 2017, compared with 38.88 percent on Apr. 30, 2016. Debt to equity ratio was at 0.49 as on Apr. 30, 2017, down from 0.92 as on Apr. 30, 2016.
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