Washington, D.C. 20549

(Mark FORM 10-Q (Mark One)

2024 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-7928

(Unaudited)

Three months ended January 31, Six months ended January 31, 2024 2023 2024 2023 Net sales $ 134,225,000 133,725,000 $ 286,136,000 264,864,000 Cost of sales 91,027,000 87,801,000 195,056,000 172,137,000 Gross profit 43,198,000 45,924,000 91,080,000 92,727,000 Expenses: Selling, general and administrative 30,307,000 28,915,000 63,002,000 58,252,000 Research and development 6,843,000 12,441,000 14,655,000 25,192,000 Amortization of intangibles 5,288,000 5,349,000 10,577,000 10,698,000 Gain on business divestiture, net (2,213,000) — (2,213,000) — CEO transition costs — — — 9,090,000 40,225,000 46,705,000 86,021,000 103,232,000 Operating income (loss) 2,973,000 (781,000) 5,059,000 (10,505,000) Other expenses (income): Interest expense 5,265,000 3,791,000 10,197,000 6,026,000 Interest (income) and other 902,000 455,000 837,000 200,000 Loss before benefit from income taxes (3,194,000) (5,027,000) (5,975,000) (16,731,000) Provision for (benefit from) income taxes 7,364,000 (222,000) 6,020,000 (830,000) Net loss $ (10,558,000) (4,805,000) $ (11,995,000) (15,901,000) Loss on extinguishment of convertible preferred stock (13,640,000) — (13,640,000) — Adjustments to reflect redemption value of convertible preferred stock: Convertible preferred stock issuance costs (4,273,000) — (4,273,000) — Dividend on convertible preferred stock (2,061,000) (1,737,000) (3,884,000) (3,447,000) Net loss attributable to common stockholders $ (30,532,000) (6,542,000) $ (33,792,000) (19,348,000) Net loss per common share (See Note 6): Basic $ (1.07) (0.23) $ (1.18) (0.69) Diluted $ (1.07) (0.23) $ (1.18) (0.69) Weighted average number of common shares outstanding – basic 28,662,000 27,954,000 28,704,000 27,892,000 Weighted average number of common and common equivalent shares outstanding – diluted 28,662,000 27,954,000 28,704,000 27,892,000 See accompanying notes to condensed consolidated financial statements. Index 3

2024 and 2023 Convertible Preferred Stock Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Stockholders' EquityShares Amount Shares Amount Shares Amount Balance as of October 31, 2022 100,000 $ 106,914,000 42,810,846 $ 4,281,000 $ 629,027,000 $ 262,902,000 15,033,317 $ (441,849,000) $ 454,361,000 Equity-classified stock award compensation — — — — 1,268,000 — — — 1,268,000 Issuance of employee stock purchase plan shares — — 14,443 1,000 87,000 — — — 88,000 Issuance of restricted stock, net of forfeiture — — 82,373 8,000 (8,000) — — — — Net settlement of stock-based awards — — (6,791) — (141,000) — — — (141,000) Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends) 1,737,000 — — — (1,737,000) — — (1,737,000) Cash dividends declared, net ($0.10 per share) — — — — — (2,775,000) — — (2,775,000) Accrual of dividend equivalents, net of reversal ($0.10 per share) — — — — — (163,000) — — (163,000) Net loss — — — — — (4,805,000) — — (4,805,000) Balance as of January 31, 2023 100,000 $ 108,651,000 42,900,871 $ 4,290,000 $ 630,233,000 $ 253,422,000 15,033,317 $ (441,849,000) $ 446,096,000 Balance as of October 31, 2023 100,000 $ 114,034,000 43,268,782 $ 4,327,000 $ 638,652,000 $ 235,676,000 15,033,317 $ (441,849,000) $ 436,806,000 Equity-classified stock award compensation — — — — 2,189,000 — — — 2,189,000 Issuance of employee stock purchase plan shares — — 11,318 1,000 81,000 — — — 82,000 Issuance of restricted stock, net of forfeiture — — (16,590) (2,000) 2,000 — — — — Net settlement of stock-based awards — — 242,779 25,000 (1,624,000) — — — (1,599,000) Extinguishment of convertible preferred stock (100,000) (115,721,000) — — — (13,640,000) — — (13,640,000) Issuance of convertible preferred stock 166,121 166,121,000 — — — — — — — Convertible preferred stock issuance costs — (4,273,000) — — — — — — — Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends) — 6,334,000 — — — (6,334,000) — — (6,334,000) Reversal of dividend equivalents — — — — — 13,000 — — 13,000 Net loss — — — — — (10,558,000) — — (10,558,000) Balance as of January 31, 2024 166,121 $ 166,495,000 43,506,289 $ 4,351,000 $ 639,300,000 $ 205,157,000 15,033,317 $ (441,849,000) $ 406,959,000 See accompanying notes to condensed consolidated financial statements. Index 4

COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Unaudited) Six months ended January 31, 2024 and 2023 Convertible Preferred Stock Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Stockholders' EquityShares Amount Shares Amount Shares Amount Balance as of July 31, 2022 100,000 $ 105,204,000 42,672,827 $ 4,267,000 $ 625,484,000 $ 278,683,000 15,033,317 $ (441,849,000) 466,585,000 Equity-classified stock award compensation — — — — 2,172,000 — — — 2,172,000 CEO transition costs related to equity-classified stock-based awards (See Note 1) — — — — 3,764,000 — — — 3,764,000 Issuance of employee stock purchase plan shares — — 29,460 3,000 204,000 — — — 207,000 Issuance of restricted stock, net of forfeiture — — 93,091 9,000 (9,000) — — — — Net settlement of stock-based awards — — 105,493 11,000 (1,382,000) — — — (1,371,000) Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends) 3,447,000 — — — (3,447,000) — — (3,447,000) Cash dividends declared, net ($0.20 per share) — — — — — (5,549,000) — — (5,549,000) Accrual of dividend equivalents, net of reversal ($0.20 per share) — — — — — (364,000) — — (364,000) Net loss — — — — — (15,901,000) — — (15,901,000) Balance as of January 31, 2023 100,000 $ 108,651,000 42,900,871 $ 4,290,000 $ 630,233,000 $ 253,422,000 15,033,317 $ (441,849,000) $ 446,096,000 Balance as of July 31, 2023 100,000 $ 112,211,000 43,096,271 $ 4,310,000 $ 636,925,000 $ 238,913,000 15,033,317 $ (441,849,000) $ 438,299,000 Equity-classified stock award compensation — — — — 4,834,000 — — — 4,834,000 Issuance of employee stock purchase plan shares — — 24,117 2,000 174,000 — — — 176,000 Issuance of restricted stock, net of forfeiture — — (2,686) — — — — — — Net settlement of stock-based awards — — 388,587 39,000 (2,633,000) — — — (2,594,000) Extinguishment of convertible preferred stock (100,000) (115,721,000) — — — (13,640,000) — — (13,640,000) Issuance of convertible preferred stock 166,121 166,121,000 — — — — — — — Convertible preferred stock issuance costs — (4,273,000) — — — — — — — Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends) — 8,157,000 — — — (8,157,000) — — (8,157,000) Reversal of dividend equivalents — — — — — 36,000 — — 36,000 Net loss — — — — — (11,995,000) — — (11,995,000) Balance as of January 31, 2024 166,121 $ 166,495,000 43,506,289 $ 4,351,000 $ 639,300,000 $ 205,157,000 15,033,317 $ (441,849,000) $ 406,959,000 See accompanying notes to condensed consolidated financial statements. Index 5

TheSix months ended January 31, 2024 2023 Supplemental cash flow disclosures: Cash paid during the period for: Interest $ 8,693,000 4,352,000 Income taxes, net $ 1,951,000 609,000 Non-cash investing and financing activities: Accrued additions to property, plant and equipment $ 1,271,000 3,339,000 Adjustment to reflect redemption value of convertible preferred stock $ 8,157,000 3,447,000 Unpaid convertible preferred stock issuance costs $ 440,000 — Accrued deferred financing costs $ 821,000 173,000 Cash dividends declared on common stock but unpaid, including (reversal) accrual of dividend equivalents $ (36,000) 3,139,000 Accrued shelf registration costs $ 20,000 — See accompanying notes to condensed consolidated financial statementsstatements. Index COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited) 7

Our EPS calculations exclude 259,000719,000 and 237,000431,000 weighted average performance shares outstanding for the three months ended January 31, 20182024 and 2017,2023, respectively, and 211,000699,000 and 229,000 weighted average performance shares outstanding352,000 for the six months ended January 31, 20182024 and 2017,2023, respectively, as the performance conditions have not yet been satisfied. However, the compensation expense related to these awards is included in net income (the numerator)numerator for EPS calculations for each respective period.

period is reduced by the compensation expense related to these awards. Weighted average common shares of 162,000 and 324,000 for the three and six months ended January 31, 2024 and 2023, respectively, related to our acquisition of UHP in March 2021 were not included in our diluted EPS calculation because their effect would have been anti-dilutive. Weighted average common shares underlying the assumed conversion of convertible preferred stock, on an if- converted basis, of 6,866,000 and 4,533,000 for the three months ended January 31, 2024 and 2023, respectively, and 5,812,000 and 4,496,000 for the six months ended January 31, 2024 and 2023, respectively, were not included in our diluted EPS calculation for the respective periods because their effect would have been anti-dilutive. As a result, the numerator for our basic and diluted EPS calculation for the three and six months ended January 31, 2024 and 2023 is the respective net loss attributable to common stockholders. The following table reconciles the numerators and denominators used in the basic and diluted EPS calculations:

Accounts receivable consist of the following at:

January 31, 2024 July 31, 2023 Receivables from commercial and international customers $ 53,581,000 52,438,000 Unbilled receivables from commercial and international customers 75,935,000 54,469,000 Receivables from the U.S. government and its agencies 9,846,000 31,149,000 Unbilled receivables from the U.S. government and its agencies 61,580,000 27,192,000 Total accounts receivable 200,942,000 165,248,000 Less allowance for doubtful accounts 2,394,000 2,089,000 Accounts receivable, net $ 198,548,000 163,159,000 Unbilled receivables as of January 31, 2024 relate to contracts-in-progress for which revenue has been recognized, but for which we have not yet billedearned the right to bill the customer for work performed. We had $125,000 and $118,000performed to-date. Under ASC 606, unbilled receivables constitute contract assets. Management estimates that a substantial portion of retainage included in unbilled receivablesthe amounts not yet billed at January 31, 2018 and July 31, 2017, respectively, and management estimates that substantially all of the unbilled receivables at January 31, 20182024 will be billed and collected within one year. OfAccounts receivable in the table above excludes $10,000 and $2,993,000 of long-term unbilled receivables from commercial and international customers atpresented within "Other assets, net" in the Condensed Consolidated Balance Sheets as of January 31, 20182024 and July 31, 2017, approximately $2,012,000 and $2,995,000, respectively, relates to a large over-the-horizon microwave system contract with our large U.S. prime contractor customer (all of which related to our North African country end-customer).

2023, respectively. As of January 31, 2018, the U.S. government (and its agencies) and Verizon Communications Inc. (through various divisions and, collectively, "Verizon") represented 30.6% and 12.0%, respectively, of total accounts receivable. As of July 31, 2017,2024, except for the U.S. government (and its agencies), which represented 23.9%35.5% of total accounts receivable, there were no other customers which accounted for greater than 10.0%10% of total accounts receivable.

Inventories consist of the following at:

January 31, 2024 July 31, 2023 Raw materials and components $ 73,451,000 87,139,000 Work-in-process and finished goods 30,508,000 43,365,000 Total inventories 103,959,000 130,504,000 Less reserve for excess and obsolete inventories 18,171,000 24,659,000 Inventories, net $ 85,788,000 105,845,000 As of January 31, 20182024 and July 31, 2017,2023, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $1,420,000$4,649,000 and $2,148,000, respectively.

As$5,911,000, respectively, and the amount of January 31, 2018 and July 31, 2017, $1,528,000 and $1,718,000, respectively, of the inventory balance above related to contracts from third partythird-party commercial customers who outsource their manufacturing to us.

Accrued expenses and other current liabilities consist of the following at:

other current liabilities $ 59,688,000 66,990,000 Accrued contract costs represent direct and indirect costs on contracts as well as estimates of amounts owed for invoices not yet received from vendors or reflected in accounts payable.

Accrued warranty obligations as of January 31, 2024 relate to estimated liabilities for assurance type warranty coverage that we provide to our customers. We generally provide warranty coverage for some of our products for a period of at least one year from the date of delivery. We record a liability for estimated warranty expense based on historical claims, product failure rates, a consideration of contractual obligations, future costs to resolve software issues and other factors. Some of our product warranties are provided under long-term contracts, the costs of which are incorporated into our estimates of total contract costs.

Changes in our current accrued warranty obligations during the six months ended January 31, 20182024 and 20172023 were as follows:

Our current accrued Six months ended January 31, 2024 2023 Balance at beginning of period $ 8,285,000 9,420,000 (Benefit from) provision for warranty obligations (27,000) 555,000 Adjustments for changes in estimates (100,000) (1,500,000) Charges incurred (896,000) (922,000) PST Divestiture (418,000) — Balance at January 31, 2018 and July 31, 2017 include $5,234,000 and $9,909,000, respectively,end of warranty obligations for a small product line that we refer to as the TCS 911 call handling software solution. This solution was licensed to customers prior to our acquisition of TCS. During the six months ended Januaryperiod $ 6,844,000 7,553,000 Index COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 20

The June 2017 Amendment is expected In addition, under certain circumstances, we may be required to resultenter into amendments to the Credit Facility in increased operating and acquisition flexibility and simplify the calculations of our financial covenants. The June 2017 Amendment resulted in, among other things, that the:

As of January 31, 2018,2024, our Secured Leverage Ratio was 2.78x TTM Consolidated EBITDA3.07x trailing twelve months ("TTM") Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA"), compared to the maximum allowable Secured Leverage Ratio of 3.35x3.50x TTM Consolidated EBITDA. During the second half of fiscal 2018, the maximum allowable Leverage Ratio will decrease each quarter until reaching 3.00x TTM ConsolidatedAdjusted EBITDA in the fourth quarter of fiscal 2018, with no further reductions thereafter. Our Fixed Charge Coverage Ratio as of January 31, 2018 was 2.09x compared to the minimum required Fixed Charge Coverage Ratio of 1.25x. The Fixed Charge Coverage Ratio will not change2024 and for the remaining term of the Secured Credit Facility,Facility; our Interest Expense Coverage Ratio was 3.34x TTM Adjusted EBITDA, compared to the Minimum Interest Expense Coverage Ratio of 3.25x TTM Adjusted EBITDA as amended. Given our expected future business performance, we anticipate maintaining compliance with the termsof January 31, 2024 and financial covenants in our Secured Credit Facility, as amended, for the foreseeable future.

remaining term of the Credit Facility; and our Minimum Liquidity was $39,500,000, compared to the Minimum Liquidity requirement of $25,000,000 as of January 31, 2024 and for the remaining term of the Credit Facility. The obligations under the Secured Credit Facility as amended, are guaranteed by certain of our domestic and foreign subsidiaries (the "Subsidiary Guarantors"“Guarantors”). As collateral security for amounts outstanding under our Securedthe Credit Facility as amended, and the guarantees thereof, we and our Subsidiarythe Guarantors have granted to anthe administrative agent, for the benefit of the lenders, a lien on, and first priority security interest in, substantially all of our tangible and intangible assets.

Capitalized terms used but not defined herein have the meanings set forth for such terms in the Secured Credit Facility, dated as of February 23, 2016, and the First Amendment of the Secured Credit Facility, dated as of June 6, 2017, both of which havehas been documented and filed with the SEC.

We lease certain equipment under capital leases. As The Credit Facility Maturity Date is less than one year out from the balance sheet date and, because as of such date we have not entered into an agreement to extend the Maturity Date or refinance our existing Credit Facility, the outstanding amount of debt is classified as a current liability on our balance sheet as of January 31, 2018 and July 31, 2017, the net book value2024. In anticipation of the leased assets which collateralizeupcoming Maturity Date, we engaged third-party financial advisors to assist us with the refinancing of our existing Credit Facility and/or amending or restructuring our Series B Convertible Preferred Stock, seeking other sources of credit or outside capital lease obligations was $3,815,000 and $5,419,000, respectively,evaluating other capital structure-related alternatives and consisted primarily of machinery and equipment. As of January 31, 2018, our capital lease obligations reflect a blended interest rate of approximately 5.9%. Our capital leases generally contain provisions whereby we can purchase the equipment at the end of the lease for a one dollar buyout. Depreciation of leased assets is included in depreciation expense.

Future minimum payments under capital(11) Leases Our leases historically relate to the leasing of facilities and equipment. In accordance with FASB ASC 842 - "Leases" ("ASC 842"), we determine at inception whether an arrangement is, or contains, a lease obligations consistedand whether the lease should be classified as an operating or a financing lease. At lease commencement, we recognize a right-of-use ("ROU") asset and lease liability based on the present value of the following atfuture lease payments over the estimated lease term. We have elected to not recognize a ROU asset or lease liability for any leases with terms of twelve months or less. Instead, for such short-term leases, we recognize lease expense on a straight-line basis over the lease term. Certain of our leases include options to extend the term of the lease or to terminate the lease early. When it is reasonably certain that we will exercise a renewal option or will not exercise a termination option, we include the impact of exercising or not exercising such option, respectively, in the estimate of the lease term. As our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate ("IBR") on the commencement date to calculate the present value of future lease payments. Such IBR represents our estimated rate of interest to borrow on a collateralized basis over a term commensurate with the expected lease term. Some of our leases include payments that are based on the Consumer Price Index ("CPI") or other similar indices. These variable lease payments are included in the calculation of the ROU asset and lease liability using the index as of the lease commencement date. Other variable lease payments, such as common area maintenance, property taxes, and usage-based amounts, are required by ASC 842 to be excluded from the ROU asset and lease liability and expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset would also consider, to the extent applicable, any deferred rent upon adoption, lease pre-payments or initial direct costs of obtaining the lease (e.g., such as commissions). For all classes of leased assets, we elected the practical expedient to not separate lease components (i.e., the actual item being leased, such as the facility or piece of equipment) from non-lease components (i.e., the distinct elements of a contract not related to securing the use of the leased asset, such as common area maintenance and consumable supplies). Certain of our facility lease agreements (which are classified as operating leases) contain rent holidays or rent escalation clauses. For rent holidays and rent escalation clauses during the lease term, we record rental expense on a straight-line basis over the term of the lease. As of January 31, 2018:2024, none of our leases contained a residual value guarantee and covenants included in our lease agreements are customary for the types of facilities and equipment being leased. The components of lease expense are as follows: Three months ended January 31, Six months ended January 31, 2024 2023 2024 2023 Finance lease expense: Amortization of ROU assets $ — 1,000 $ — 4,000 Operating lease expense 2,080,000 2,756,000 4,338,000 5,593,000 Short-term lease expense 65,000 117,000 173,000 218,000 Variable lease expense 916,000 1,011,000 1,945,000 2,098,000 Sublease income (16,000) (16,000) (33,000) (33,000) Total lease expense $ 3,045,000 3,869,000 $ 6,423,000 7,880,000 Index COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 23

On December 22, 2017, H.R.1, also knownAdditional information related to leases is as the Tax Cuts and Jobs Act ("Tax Reform") was enactedfollows: Six months ended January 31, 2024 2023 Cash paid for amounts included in the U.S. Tax Reform significantly lowered the amountmeasurement of our current and future income tax expense primarily due to the reductionlease liabilities: Operating leases - Operating cash outflows $ 4,439,000 $ 5,593,000 Finance leases - Financing cash outflows — 4,000 ROU assets obtained in the U.S. statutory income taxexchange for lease liabilities (non-cash): Operating leases $ 20,000 $ 2,838,000 The following table is a reconciliation of future cash flows relating to operating lease liabilities presented on our Condensed Consolidated Balance Sheet as of January 31, 2024: Remainder of fiscal 2024 $ 4,405,000 Fiscal 2025 8,138,000 Fiscal 2026 6,701,000 Fiscal 2027 4,596,000 Fiscal 2028 3,856,000 Thereafter 18,867,000 Total future undiscounted cash flows 46,563,000 Less: Present value discount 5,348,000 Lease liabilities $ 41,215,000 Weighted-average remaining lease terms (in years) 8.13 Weighted-average discount rate from 35.0% to 21.0%. This provision went into effect on3.47% As of January 1, 2018 and required us to remeasure our deferred tax assets and liabilities. In fiscal 2019 and beyond, Tax Reform will result in the loss of our ability to take the domestic production activities deduction, which has been repealed, and is also likely to result in lower tax deductions for certain executive compensation expenses.

For fiscal 2018,31, 2024, we will be subject to a 35.0% statutory income tax rate with respect to the period August 1, 2017 through December 31, 2017 and a 21.0% statutory income tax rate with respect to the period January 1, 2018 through July 31, 2018, or a blended statutory income tax rate for fiscal 2018 of approximately 27.0%. As such, ourdo not have any material rental commitments that have not already commenced. (12) Income Taxes Our effective tax rate for accounting purposes in fiscal 2018, excluding discrete items, is now expected to approximate 27.75% as compared to our prior estimate of 34.5%. We expect to fully benefit from the lower statutory income tax rate in fiscal 2019 and thereafter.

Three months ended January 31, Six months ended January 31, 2024 2023 2024 2023 Cost of sales $ 131,000 153,000 $ 413,000 311,000 Selling, general and administrative expenses 1,991,000 1,015,000 4,167,000 1,663,000 Research and development expenses 67,000 100,000 254,000 198,000 Stock-based compensation expense before CEO transition costs 2,189,000 1,268,000 4,834,000 2,172,000 CEO transition costs related to equity- classified stock-based awards — — — 3,764,000 Total stock-based compensation expense before income tax benefit 2,189,000 1,268,000 4,834,000 5,936,000 Estimated income tax benefit (484,000) (293,000) (1,068,000) (786,000) Net stock-based compensation expense $ 1,705,000 975,000 $ 3,766,000 5,150,000 Stock-based compensation for equity-classified awards is measured at the date of grant, based on an estimate of the fair value of the award and is generally expensed over the vesting period of the award. At January 31, 2018,2024, unrecognized stock-based compensation of $9,015,000,$11,864,000, net of estimated forfeitures of $902,000,$723,000, is expected to be recognized over a weighted average period of 3.02.2 years. Total stock-based compensation capitalized and included in ending inventory at both January 31, 20182024 and July 31, 20172023 was $12,000. There are no liability-classified stock-based awards outstanding as of January 31, 2018 or July 31, 2017.

$198,000. Stock-based compensation expense, (benefit), by award type, is summarized as follows:

Three months ended January 31, Six months ended January 31, 2024 2023 2024 2023 Stock options $ 12,000 19,000 $ 31,000 44,000 Performance shares 585,000 281,000 942,000 355,000 RSUs, restricted stock and share units 1,566,000 937,000 3,810,000 1,711,000 ESPP 26,000 31,000 51,000 62,000 Stock-based compensation expense before CEO transition costs 2,189,000 1,268,000 4,834,000 2,172,000 CEO transition costs related to equity- classified stock-based awards — — — 3,764,000 Total stock-based compensation expense before income tax benefit 2,189,000 1,268,000 4,834,000 5,936,000 Estimated income tax benefit (484,000) (293,000) (1,068,000) (786,000) Net stock-based compensation expense $ 1,705,000 975,000 $ 3,766,000 5,150,000 ESPP stock-based compensation expense primarily relates to the 15% discount offered to participants in the ESPP.

The estimated income tax benefit as shown in the above table was computed using income tax rates expected to apply when the awards are settled. Such deferred tax asset was recorded net as part of our non-current deferred tax liability inon our Condensed Consolidated Balance SheetSheets as of January 31, 20182024 and July 31, 2017.2023. The actual income tax benefit recognized for tax reporting is based on the fair market value of our common stock at the time of settlement and can significantly differ from the estimated income tax benefit recorded for financial reporting. Index COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 26

The following table summarizes the Plan's activity during the six months endedactivity: Awards (in Shares) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at July 31, 2023 240,510 23.96 Expired/canceled (6,250) 24.31 Outstanding at October 31, 2023 234,260 $ 23.95 Expired/canceled (9,680) 24.25 Outstanding at January 31, 2018:

2024 224,580 $ 23.93 3.58 $ — Exercisable at January 31, 2024 201,880 $ 24.61 3.27 $ — Vested and expected to vest at January 31, 2024 223,916 $ 23.95 3.57 $ — Stock options outstanding as of January 31, 20182024 have exercise prices ranging from $20.90 to$17.88 - $33.94, representing the fair market value of our common stock on the date of grant, a contractual term of five or ten years and a vesting period of three or five years. There were no stock options granted or exercised during the six months ended January 31, 2018 and 2017. As there were no exercises during the six months ended January 31, 2018 and 2017, there were no net settlements of stock options or the related issuance of common stock during the respective periods.

The following table summarizes the Plan's activity relating to performance shares, RSUs, restricted stock, share units and share units:

other stock-based awards: Awards (in Shares) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at July 31, 2023 1,876,230 $ 13.21 Granted 913,908 9.93 Settled (296,198) 16.03 Canceled/Forfeited (41,814) 15.80 Outstanding at October 31, 2023 2,452,126 11.60 Settled (383,565) 10.64 Canceled/Forfeited (41,927) 12.78 Outstanding at January 31, 2024 2,026,634 $ 11.76 $ 12,828,592 Vested at January 31, 2024 452,444 $ 14.98 $ 2,863,969 Vested and expected to vest at January 31, 2024 1,960,958 $ 11.79 $ 12,412,866 The total intrinsic value relating to fully-vested awards settled during the three and six months ended January 31, 20182024 was $4,789,000 and 2017 was $11,000 and $208,000,$7,445,000, respectively. The total intrinsic value relating to fully-vested awards settled during the three and six months ended January 31, 20182023 was $195,000 and 2017 was $1,948,000 and $633,000,$2,964,000, respectively.

Performance shares granted to employees prior to fiscal 2014 generally vest over a 5.3 year period, beginning on the date of grant once pre-established performance goals were attained, and are convertible into shares of our common stock at the time of vesting, on a one-for-one basis for no cash consideration. The performance shares granted to employees since fiscal 2014 principally vest over a three-year performance period, if pre-established performance goals are attained, or as specified pursuant to the Plan and related agreements. As of January 31, 2018,2024, the number of outstanding performance shares included in the above table, and the related compensation expense prior to consideration of estimated pre-vesting forfeitures, assume achievement of the pre-established goals at a target level.level, except for our former CEO's, whose achievement was based on maximum performance pursuant to their pre-existing change-in-control agreements. Index COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 27

Commencing in August 2022, such RSUs have a vesting period of three years. Share units granted prior to July 31, 2017 were vested when issued and are convertible into shares of our common stock, generally at the time of termination, on a one-for-one basis for no cash consideration, or earlier under certain circumstances. Share units granted on or after July 31, 2017 were granted to certain employees in lieu of fiscal 2017 non-equity incentive compensation and are convertible into shares of our common stock on the one-year anniversary of the respective grant date. Cumulatively through January 31, 2018, 14,777 share units granted have been settled.

The fair value of performance shares, RSUs, restricted stock and share units is determined using the closing market price of our common stock on the date of grant, less the present value of any estimated future dividend equivalents such awards are not entitled to receive and an applicable estimated discount for post vestingany post-vesting transfer restrictions. RSUs, performance shares and restricted stock granted since fiscal 2013 are entitled to dividend equivalents, as applicable, unless forfeited before vesting occurs; however, performance shares granted in fiscal 2013 were not entitled to such dividend equivalents until our Board of Directors determined that the pre-established performance goals were met.occurs. Share units granted prior to fiscal 2014 are not entitled to dividend equivalents. Share units granted since fiscal 2014 areand other stock-based awards would be entitled to dividend equivalents while the underlying shares are unissued.

Dividend equivalents are subject to forfeiture, similar to the terms of the underlying stock-based awards, and are payable in cash generally at the time of settlement of the underlying shares into our common stock.award. During the three and six months ended January 31, 2018,2024, we reversed $13,000 and $36,000, respectively, of previously accrued dividend equivalents due to forfeitures and paid out $151,000 and $265,000, respectively. During the three and six months ended January 31, 2023, we accrued $155,000$163,000 and $364,000, respectively, of dividend equivalents (net of forfeitures) and paid out $128,000.$4,000 and $350,000, respectively. Accrued dividend equivalents were recorded as a reduction to retained earnings. As of January 31, 20182024 and July 31, 2017,2023, accrued dividend equivalents were $581,000$390,000 and $554,000,$691,000, respectively.

We recorded $71,000 of income tax expense in our Condensed Consolidated Statements of Operations for With respect to the six months ended January 31, 2018, which represents net income tax shortfalls from theactual settlement of stock-based awards and the reversal of deferred tax assets associated with expired and unexercised stock-based awards. During the six months ended January 31, 2017, netfor income tax shortfalls from similar items totaled $601,000 and, pursuant to prior GAAP, were recorded as a reduction to additional paid-in capital.

Domestic sales include sales to commercial customers, as well as to U.S. state and local governments. Included in domestic sales, are sales to Verizon which represented 10.5% and 11.1% of consolidated net sales forreporting, during the three and six months ended January 31, 2018, respectively. Sales to Verizon were less than 10.0%2024, we recorded an income tax benefit of consolidated net sales for$141,000 and income tax expense of $303,000, respectively, and during the three and six months ended January 31, 2017.

International sales for the three months ended January 31, 20182023, we recorded an income tax expense of $182,000 and 2017 (which include sales to U.S. domestic companies for inclusion in products that are sold to international customers) were $35,400,000 and $44,623,000,$545,000, respectively. International sales for the six months ended January 31, 2018 and 2017 (which include sales to U.S. domestic companies for inclusion in products that are sold to international customers) were $63,714,000 and $82,457,000, respectively.

Our Commercial Solutions segment serves commercial customersSpace Communications is organized into three technology areas: satellite modem technologies and smaller government customers, such as stateamplifier technologies, troposcatter and local governments, that require advanced communications technologies to meet their needs.SATCOM solutions, and space components and antennas. This segment also serves certain large government customers (includingoffers customers: satellite ground station technologies, services and system integration that facilitate the U.S. government) when they have requirements for off-the-shelf commercial equipment. Commercial solutions products includetransmission of voice, video and data over GEO, MEO and LEO satellite earth station communications equipment such as modemsconstellations, including solid-state and traveling wave tube power amplifiers, public safety technologiesmodems, VSAT platforms and frequency converters; satellite communications and tracking antenna systems, including thosehigh precision full motion fixed and mobile X/Y tracking antennas, RF feeds, reflectors and radomes; over-the-horizon microwave equipment that are utilized incan transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction, including the Comtech COMET™; and procurement and supply chain management of high reliability Electrical, Electronic and Electromechanical ("EEE") parts for satellite, launch vehicle and manned space applications. Index COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 28

Six months ended January 31, 2023 Satellite and Space Communications Terrestrial and Wireless Networks Unallocated Total Net sales $ 161,280,000 103,584,000 — $ 264,864,000 Operating income (loss) $ 8,343,000 4,056,000 (22,904,000) $ (10,505,000) Net income (loss) $ 8,938,000 4,168,000 (29,007,000) $ (15,901,000) (Benefit from) provision for income taxes (644,000) (281,000) 95,000 (830,000) Interest expense 27,000 — 5,999,000 6,026,000 Interest (income) and other 22,000 169,000 9,000 200,000 Amortization of stock-based compensation — — 2,172,000 2,172,000 Amortization of intangibles 3,656,000 7,042,000 — 10,698,000 Depreciation 2,030,000 3,658,000 77,000 5,765,000 Amortization of cost to fulfill assets 480,000 — — 480,000 Restructuring costs 2,145,000 — 723,000 2,868,000 Strategic emerging technology costs 1,484,000 — — 1,484,000 CEO transition costs — — 9,090,000 9,090,000 Adjusted EBITDA $ 18,138,000 14,756,000 (10,842,000) $ 22,052,000 Purchases of property, plant and equipment $ 4,554,000 4,956,000 408,000 $ 9,918,000 Total assets at January 31, 2023 $ 486,426,000 471,358,000 25,888,000 $ 983,672,000 Unallocated expenses result from corporate expenses such as executive compensation, accounting, legal and other regulatory compliance related costs and also includes all of our amortization of stock-based compensation. In addition, during fiscal 2017, unallocated expenses also reflect the favorable adjustments to operating incomeSee Note (1) - "General - CEO Transition Related" for information related to the settlement of certain legacy TCS intellectual property matters.

discussion. Intersegment sales for both the three months ended January 31, 2018 and 2017 by the Commercial Solutions segment to the Government Solutions segment were $2,328,000 and $3,059,000, respectively. Intersegment sales for the six months ended January 31, 20182024 and 2017 by2023 between the Commercial SolutionsSatellite and Space Communications segment toand the Government SolutionsTerrestrial and Wireless Networks segment were $4,949,000 and $6,485,000, respectively. There were nominal sales by the Government Solutions segment to the Commercial Solutions segment for these periods.nominal. All intersegment sales are eliminated in consolidation and are excluded from the tables above.

Unallocated assets at January 31, 20182024 consist principally of cash and cash equivalents, income taxes receivable, corporate property, plant and equipment, operating lease right of use assets and deferred financing costs. Substantially allThe large majority of our long-lived assets are located in the U.S. Index COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 31

The following table represents goodwill by reportable operating segment as of January 31, 20182024 and July 31, 2017:

On August 1, 20172023 (the first day of our fiscal 2018)2024), we performed our annual quantitative assessment using market participant assumptions to determine if the fair value of each of our reporting units with goodwill exceeded its carrying value. In making this assessment, we considered, among other things, expectations of projected net sales and cash flows, assumptions impacting the weighted average cost of capital, trends in trading multiples of comparable companies, changes in our stock price and changes in the carrying values of our reporting units with goodwill. We also considered overall business conditions.

In performing the quantitative assessment, we estimated the fair value of each of our reporting units using a combination of the income and market approaches. The income approach, also known as the discounted cash flow ("DCF") method, utilizes the present value of cash flows to estimate fair value. The future cash flows for our reporting units were projected based on our estimates, at that time, of future revenues, operating income and other factors (such as working capital and capital expenditures). For purposes of conducting our impairment analysis, we assumed revenue growth rates and cash flow projections that are below our actual long-term expectations. The discount rates used in our DCF method were based on a weighted-average cost of capital ("WACC") determined from relevant market comparisons, adjusted upward for specific reporting unit risks (primarily the uncertainty of achieving projected operating cash flows). A terminal value growth rate was applied to the final year of the projected period, and reflectedwhich reflects our estimate of stable, perpetual growth. We then calculated a present value of the respective cash flows for each reporting unit to arrive at an estimate of fair value under the income approach. Under the market approach, we estimated a fair value based on comparable companies' market multiples of revenues and earnings before interest, taxes, depreciation and amortization and factored in a control premium. Finally, we compared our estimates of fair values to our August 1, 2017 total public market capitalization and assessed implied control premiums based on our common stock price of $18.47$10.09 as of August 1, 2017.

Basedthe date of testing. Ultimately, based on our quantitative evaluation,evaluations, we determined that our Commercial SolutionsSatellite and Government SolutionsSpace Communications and Terrestrial and Wireless Networks reporting units had estimated fair values in excess of their carrying values of at least 17.8%18.3% and 52.9%8.9%, respectively, and concluded that our goodwill was not impaired and that neither of our two reporting units was at risk of failing the quantitative assessment. However, in orderIndex COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 32

Intangible assets with finite lives are as follows:

January 31, 2024 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 20.2 $ 302,058,000 129,121,000 $ 172,937,000 Technologies 14.8 113,149,000 80,996,000 32,153,000 Trademarks and other 16.7 32,926,000 22,686,000 10,240,000 Total $ 448,133,000 232,803,000 $ 215,330,000 July 31, 2023 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 20.2 $ 302,058,000 121,786,000 $ 180,272,000 Technologies 14.8 114,949,000 80,672,000 34,277,000 Trademarks and other 16.7 32,926,000 21,568,000 11,358,000 Total $ 449,933,000 224,026,000 $ 225,907,000 The weighted average amortization period in the above table excludes fully amortized intangible assets.

Amortization expense for the three and six months ended January 31, 20182024 was $5,288,000 and 2017 was $5,268,000 and $6,032,000,$10,577,000, respectively. Amortization expense for the three and six months ended January 31, 20182023 $5,349,000 and 2017 was $10,537,000 and $12,087,000,$10,698,000, respectively.