CMTL - Earnings call transcript Q4 2019 | Comtech Telecommunications Corp.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Comtech Telecommunications Corp. Fourth Quarter Fiscal 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. reminder, is a September recorded, As XXXX. XX, Instructions] this being call Tuesday, [Operator

like the ahead, to Mr. now would I turn of Telecommunications. Jason conference Comtech Please go sir. DiLorenzo to over

Jason DiLorenzo

Operating Welcome to fourth D. and the and President Executive the fiscal Officer; call Thank you afternoon of and Senior and the Telecommunications Vice Fred call quarter us Corp. With XXXX. Chief Michael Officer are Bondi, of Porcelain, Financial Comtech President year this Comtech; for conference on Chief Michael Chief afternoon. Kornberg, Officer.

Company’s the to outlook proceed, I this and Company’s objectives differ you we entirety not Any safe financial business and in relating are Before their are and by forward-looking Company, Company’s management. outlook, include, future the Securities business uncertainties. qualified the and business of contained forward-looking harbor will Certain performance, cautionary results Company’s of need involve be plans, the in and outlook Commission remind The forward-looking presented Exchange in regarding Company’s the in information. plans objectives of information and to, and from risks such to filings. information Actual plans, and assumptions the nature the limited but statements such statements significant language. performance call condition materially could

Kornberg. I am pleased of now to introduce the Fred? President Comtech, Chief Executive Officer Fred and

Fred Kornberg

everyone, quarter we afternoon, thank for on of you Good Jason. and discussing for XXXX. be will afternoon, you, the our call. fiscal Thank This joining us results this fourth

Comtech of far, the backlog. the We for and healthy across an very successful we was fiscal the today, generated year fourth Comtech. performance better positioned complementary We completed by a a outstanding from the an that XXXX. acquisitions finish at announcement our you for results guidance and finished to the robust financial small see with even our can As year exceeded provided board year two quarter beginning

in initial the $XXX fiscal million. to XXXX to range $XXX we’re revenue be approximately million goal setting As our such, of

$X.XX, and be range to Our diluted million. goal GAAP to adjusted initial of initial EPS to the our of to $XX $XXX million EBITDA $X.XX goal a range in

our will results, of our that, turn the about Mike Bondi, will from provide thoughts detail. Mike to the quarter who well financial segments, fiscal more some discussion I’ll answers. Porcelain, our discussion XXXX. come and then, And provide year and will opening COO, I the before call a of time, both a our as back After to business in this At over questions Mike? CFO, full up as

Michael Bondi

good everyone. and you, Fred, afternoon, Thank

XXXX sales Our fourth for and $XXX.X of net our the an represents of the quarter annual XX.X%. QX growth rate fiscal of which sales year finished we with given were strong million, $XXX.X performance, million

total to were of a From based fiscal XXXX net sales net international perspective, geographic customers to sales XX.X% with customers. XX.X% U.S. in

Bookings fourth were at million. for quarter $XXX.X the solid

of For the fiscal near million, and strong million approximately the a year finished healthy $XXX full year, we When book-to-bill our ended $XXX.X value about multiyear awarded total which in billion which not orders $X backlog have for you in contracts revenue. and we plus unfunded to expect visibility backlog, us our of high. XXXX achieved We ratio bookings against, total clear future of record is to add with X.XX. the but backlog we of with

for year Our the in XXXX was XX.X% gross percentage XX.X%. and profit was QX

in XXXX lower in Solutions discussed As which sales historically before, our Commercial Government year-over-year margins reflects gross increase our in Solutions profit segment. segment, our significant a gross achieves than

driven product margin percentage gross fiscal will fiscal our of percentage profit at on point, in mix. same level The to final ultimate about we expect be based XXXX perhaps XXXX slightly this the be or Looking forward, lower. gross

net sales. the XXXX, or GAAP XX.X% for July ended months SG&A million consolidated three expenses were of XX, $XX.X

of and of our consolidated location Solutions repositioning XX.X% For the a include estimated settlement million Government related million certain million of $X.X year, Commercial in GAAP costs our facility net segment, segment. SG&A our our Solutions contract to $XXX.X solutions sales in technology or expenses exit costs of $X.X were and

our XX% of or would costs, expenses net have been SG&A $XXX.X such Excluding million sales. consolidated

make slightly fiscal to GAAP SG&A fiscal current continue in a fiscal compared percentage total investments net marketing and to be We to based dollars consolidated in do we And XXXX XX. expect as as of sales. but XXXX, lower to plans, in than spending sales in be total on SG&A GAAP higher

Our location technology ongoing. our repositioning solutions of remains

it new settlement GAAP that contract the expenses our Obviously, such, finalization are XXXX or guidance. be may of possible types by of of is fiscal any not As adjustments even items. estimates XXXX initial in impacted SG&A in these fiscal our

balance expenses. spent and compensation, of which consolidated of representing Solutions our We $XX.X fourth $X.X with segment is million of or XXXX Of to research segment segment. the this spent fiscal sales. stock-based $XX.X quarter amortization the Government amount, was unallocated net the in Solutions in development the recorded and Turning in Commercial in million our million X.X%

$XX.X For the sales. were expenses year, R&D or net consolidated X.X% of million

R&D to continue fiscal investing in XXXX. projects We in expect

expect a be percentage R&D but slightly be As amount higher, of such, to as lower XXXX. than we the in to fiscal dollars

million of $X.X relates it it quarter was the of amortization, Amortization million million. XXXX. stock-based during fiscal was QX in and fourth intangibles compensation fiscal for total the As XXXX expense $XX.X $X.X to was year,

$XX.X year, the of intangibles was amortization million. For

business is full outlook fiscal $XX Our XXXX, our approximate year which million. impact expected fiscal to acquisitions, for XXXX a from assumes

fiscal operating consolidated X.X% fourth of income net was of $XX.X the GAAP Our sales. or quarter million for XXXX

net X.X% been $XX.X Excluding $X.X or of of acquisition QX million would plan it expenses, consolidated sales. have million

For or was GAAP X.X% $XX.X income the sales. consolidated million net operating of year, our

including as in $X.X we net operating expenses, dollars fiscal X%. that QX million be to anticipated XXXX acquisition plan believe and GAAP of sales than income a forward consolidated XXXX of Looking higher will percentage approximate and

sales. of XXXX Our related sales in Solutions and sales QX $X.X was in for or segment $XX.X XX.X% for our On net net segment of related X.X% our level, the adjusted EBITDA net adjusted of XX% fourth EBITDA XXXX. $XX.X adjusted Solutions Commercial was million or EBITDA was Government consolidated million or million segment a quarter of

XX.X% we Solutions EBITDA XXXX, in Commercial and margins XX.X% of segment and adjusted fiscal the Solutions XX.X%. segment, basis achieved For consolidated on Government a in the

of changes we the takes percentage approximately a in product of a $XX and all anticipate spending are net in $XXX approximately in consolidated to puts other that or to XXXX, sales, fiscal we XX%. million, expecting XXXX be Given and in mix of EBITDA as fiscal adjusted range million

progresses, on year But, the to the right able we product seems be our to current be this. As this given mix target. assumptions, might improve

sheet. flows, in the million me quarter was balance and further Now, $X.X interest, of Interest about talk expense EPS, let taxes, XXXX. fourth fiscal cash our

For the XXXX, approximate anticipating our we $X.X interest was it year, million. to million. fiscal expense $X.X In are

the rate, which approximates amortization costs, of deferred borrowing X%. Our financing currently actual cash excludes

excluding rate taxes, discrete our was tax XX.XX%. of XXXX, a expense fiscal fourth quarter effective Regarding of tax net $XXX,XXX approximately in the

XXXX effective rate our tax items fiscal is XX%. forward, approximate Looking tax discrete expected to before

On the bottom-line, million diluted GAAP XXXX net $X.XX $X.X QX income was or share. in per

plan tax for million or items, expenses net QX income discrete diluted and Excluding our $X.XX XXXX share. non-GAAP acquisition per was $X.X

fiscal per $XX or $X.XX GAAP million, For net was diluted share. XXXX, income

GAAP items we and million setting are press net XXXX income or are and EPS $X.XX plan release may be that XXXX fiscal non-GAAP be EPS range occur a a basis that plan $X.X issued to to to a fiscal in target $XX.X be range our adjustment of expenses, diluted $X.XX. today, including $X.XX non-GAAP of share. to GAAP in and our amount On adjustments was $X.XX other million for $X.XX XXXX our Fred indicated per will mentioned, by the acquisition diluted earlier expenses acquisition Ultimately, Excluding the EPS year. final of fiscal in during as impacted of

of and for million fiscal $XX we cash operating strong XXXX XXXX. of Once quarter fourth fiscal $XX.X again, achieved million for flows the

benefited buildup fiscal forward, Our do flow from in QX working timing. given capital in growth. And cash of and our some working we expect XXXX, changes looking capital

such, generate and cash between XXXX. somewhere operations flows $XX from As expect fiscal to million of $XX in we million

As this fine tune amount. the we progresses, year will

cash XXXX, was cash $XX.X and as our of million July total includes sheet balance XX, outstanding of million. Our $XXX.X debt and equivalents,

our secure in flexibility credit plenty leverage of as has sheet ratio, is balance facility, and times. Our our only X.XX current defined

some around respect expected additional with me color the on today guidance timing performance. provided you quarters XXXX QX our we Let and to the give financial

have the than past to in quarters to often lumpiness fiscal In XXXX or lowest. some business the Comtech’s half, the be performance be QX years, Comtech’s anticipated higher expected before, them. with we unevenness financial cycle, have to several in is stated this the first of As to regard, fiscal half similar second

of I want of to in to expected be incremental of operating fiscal point achieved intangible than million to income fiscal QX $X.X QX due XXXX amortization in we lower is assets. the primarily out XXXX, that

$XXX of around EBITDA sit here would $XX.X of the will slightly QX like million, $XXX.X with QX million EBITDA sales, fiscal XXXX approximate than EPS looks adjusted achieved in today, at adjusted of or and sales, As of come $X.XX. $XX XXXX. fiscal QX million in GAAP in better it million we we

peak. and of do being better of than each quarter be the net EBITDA consolidated sales For XXXX the adjusted the rest quarters fiscal year, quarter the to comparative for we with of fourth expect fiscal the XXXX,

looks Stepping and year, great be it back, XXXX better. a like was will XXXX even

to Now, Porcelain. I’ll it Michael over hand

Michael D. Porcelain

Thanks, Mike.

do demonstratively I are on strategies is business paying believe clear off. Based long-term strong our results, it that operating

segments, our color XXXX Let developments both and me XXXX. for and two give additional business you some recent of for each

we we XXXX, started to leverage I and some the rebrand of rebranding to more further strategies, and efforts to fiscal our As we our opportunities highlight as that reflective lines have them mention head product efforts them make into the go of integrate along. growth I’ll see. sales

up this $XXX.X in fiscal for year, was book-to-bill Solutions Commercial $XX.X X.X% quarter and in were Net $XXX segment and ratio. segment million sales our were this In $XXX.X versus in the sales million X.XX Total for resulting this million were million great last XXXX. for a the segment, outstanding an it Bookings year. year. quarter,

and both technologies which station state used a solid our year. in technology primarily to previously referred amplifiers, TWTA line, as and we our consists communications are communications, satellite of that product and Our satellite ground solution terrific had which line, modems

in line ground solutions not fiscal incremental delays government amplifiers, sales well technology customers sales experience only in significant XXXX did communication international product growth, but to as lower customers. the poised XXXX, U.S. from Although believe growth as order for is next several demand experienced station in this for We our line in-flight it years. for and satellite fiscal

clearly their XXXX. it successful the and than the products significantly was grow. a Our in XXXX, fiscal were achieved Heights higher levels to Heights sales mark, and very fiscal continues are hitting pipeline

early of on migrate believe stages XG from of Based both to backhaul increase or the to in and growing LEO cellular demand. we XG, need the period be as and the satellites multiyear XG launched, high-throughput anticipated networks we expected of a to satellites, and number and the HTS are traffic, that in ultimately

Now, fiscal as product to location public our in sales in and let compared turn fiscal significantly XXXX. me aggregate to safety XXXX technology lines, higher were who

to sales in too, fiscal XXXX are expected grow. Here

part of enterprises simple previously in strength and As line enterprise location our to mapping opportunities. chosen going we products on focus location. our public are rebranding is as our announced those carrier to name forward Location to and And solutions, was Technologies. advanced strategy for highlight This repositioning, safety continue product location

And public acquisitions and a XXX the that the benefit are positive impact. these anticipated both technology having Our and already are product safety our we acquisition acquisition business. Solacom location lines of from to GD believe

Sullivan last I’m winner conference is our line leadership touting that their this product North that in call And we announced regard, announce were others. better the XXXX of to American strategy pleased award. Sometimes, since & left Frost to

next As contract complexity addresses next a has acquisitions, truly comprehensive XXX. XXX customer introduction emerged our this adoption and product With generation that recent reduces report, our of XXX and Comtech the award United one assembly holders the largest of on based their stated accelerates in States. widespread the in of as needs, was line next-generation generation

execution. our expect with XXXX, We and And are this on to award-winning award strategies to fiscal a pleased focus during customers our to continue third party. by we communicate

set competitive, public our segment, we end base for of forward, strengths the strong in products, and while growth. stage and we Looking Commercial has remain product we opportunities, the market leadership conditions are healthy. multiyear a backlog that this All-in-all, given optimistic safety our for have have growing segment Solutions

of we year, Net in turn full million year. million banner QX Government in here a And segment Now, compared for net QX represents $XX.X too fiscal this let XXXX where as fiscal to Solutions fiscal of sales me of to year. our increase $XXX.X XX.X% the sales XXXX. were $XX.X in over which million, were segment prior an had the

at in segment solid and Solutions XXXX Government our for in were million. $XXX came Bookings fiscal

Looking forward, we do be segment. will year a for fiscal XXXX believe that growth of this

going also forward, about efforts here solution rebranding groups. and doing too, two will we We talking some be are

be satellite-based component group Solutions management. services, Government support and first called The solutions, will satellite tactical, which provides field mission technology now chain critical, supply

The radiofrequency applications. second group in technologies This and troposcatter technologies. solid-state sophisticated solutions set amplifiers which power called consists systems, high friend be of technologies, radar, communication transmission will foe electronic high-performance warfare, used are or switching and identification our

segment and And U.S. particularly we government core Solutions a large better prime rebranding will governments, the Government is our Our product contractors. supplier key believe strengths. large this line reflect for

contract providing System, pursuant $XX.X Solutions equipment Satellite products $XXX.X to a of the GTACS or and U.S. Government Advanced VSAT our Global a to networking Today, segment other Manpack which contract, remaining Terminals, million. leader unfunded Army in is Tactical is value Communication million the advanced

provider And these sole believe services we of orders $XX is work This years for XXXX, services. of sustainment through many received we fiscal continue fiscal XXXX, also the U.S. We in SNAP to for ahead. to expected Army. and the million are

in not work this Our U.S. government. the segment is limited to just

governments. We to also many sell foreign

For that. military air to we We for control their will Brazilian during believe and expand contract international on network our grow traffic to received from the sales focusing quarter, a that system. over fourth we several continue $X the are instance, next years million its satellite-based

Government have like growth we be year Solutions and opportunities segment optimistic Today, able progresses, of we for large fiscal is in XXXX segment. as to them looking All-in-all, our this year that report are the bookings. another as several will

success back to it do few Fred, our our turning forward want make strategy. recent a remarks to I and about go Before

both embarked ago, expand on investing we and We successful. marketing ourselves and proved years on to and has scale, R&D have our into growing Several growth acquisition a our transform earnings greater and strategy strategy markets. focusing more to participation in believe diverse organic unquestionably of

as Comtech to in few firmly secure leader that wireless provide this, growing the market. established a points a how want has and which itself I data evidence also illustrates market communications

not end that these XXXX, four First, XXXX. Back million and looking bright, of of down our of to Both adjusted from things we just EBITDA. metrics time, to in XXXX and of today, a third the were double-digits million our too consecutive were consecutive be revenue back adjusted large XXXX year and here EBITDA growth. we are contract and our growth recovering But was years ago had to same $XXX.X $XX.X then, were still loss. able year we proclaim of looking from fiscal pleased of fiscal fourth revenue

our larger hope expecting We offer when change, fiscal are we the believe in fiscal to we XXXX, are solutions. of at grow size twice And customers more and are able Looking XXXX the this with customers targets, again. them. advanced more and targets to nearly to are to recognizing these participate midpoint and our we comparing opportunities

were we markets. international the and to volatile really over in Second, diversified, fiscal XXXX, back exposed not we extremely were well

were internationally. -- international were revenues our XX% of only derived XX% international, XX% revenues of of today, our almost are fact, and In our revenues

local had and to relations clearly carriers. with also no exposure no and changed. governments We mobile virtually has That U.S. state

XX.X% today, In million even did fact, exist $XXX.X not in approximately here as fiscal of XXXX. XXXX our we sit or revenues

in in fiscal in As pleased an today, software ourselves XXXX. no software XXX that sales a in safety more based. the we and majority transformed have software sold we which somewhat business, and location of example, We are have virtually are regard. become back are this we our vast And solutions, leader important public

millions dollars more in we is to our continue Heights In addition, of derived, virtually the in on fiscal which dollars -- and XXXX with went sales the way. now growth from develop zero to zero we double-digit software sales solution,

large want provide don’t us XX% amount total is from a as Solutions approximately assume zero. now approximately number or point, specific base changer type. Clearly, for segment a this Commercial is it major revenue is our I annuity of That based. of again fair to is at to Although, software of repeat a software-based that revenue Company’s game XX% literally of or the type a revenues

acquisitions. successfully three have acquisition the completed on front, Fourth, we

acquisition our everyone XXXX was very and large As fiscal knows, very complex. TCS

mentioned the acquisitions fiscal in Frost the and accomplishments I here. of public we public And has TCS we in acquisition had safety Building as success The a market. of business. GD it made to Today, that solidified and our some integrated XXX two XXXX on position leadership Sullivan small is clear. Solacom space. Next but in recognized fiscal has Generation took into Although do acquisitions lot cleanup fully the further success market & time, our earlier, have been that XXXX, important safety of our

Looking forward, to growth growth could us our programs, more of we plan. acquisitions more in addition by achieve more acquisitions allow our From will bring part profitable growth, perspective, and organic to revenue than ourselves. achieving are capabilities, achieve

business include have these our -- of with deliver long-term acquisitions can we demonstrated of and not believe ones results recent values, for we fit we our into we that our only acquisitions. does outlook culture do can acquisitions, we Our we to course believe intend positive can and the shareholders. impact Like that that we

As of expect, the mentioned, plan expenses, QX, we least million are XXXX, acquisition Mike $X.X with efforts. head during in quarter. into to our fiscal incur we continuing Bondi do at as we And

point I that cash operating is look and back Finally, I one market great testament Comtech, our key at comment, when our last positions sit find and one flows. data leadership strength to a

expect am grow three of levels, future flows our years. GAAP last is for operating I Here, aside, current have over Timing cash to bright and we many we that to cash come. $XXX optimistic from generated over the million years flows

who remarks. Fred, provide to back Fred? some Now, let me will turn it closing

Fred Kornberg

fiscal to Comtech. for It how our is business business year illustrates as was leadership a act I’m in terrific And with earning previously but pleased our our hard mentioned, I the fiscal performing power of XXXX. a XXXX follow, positions. and product That’s very

point, out optimism, visibility, fiscal clear lots and of I XXXX, Looking to a have say at this a can momentum. business we strong

that environment needs wind that will of years to believe customers increasingly market to in wireless an sustained confident usage, Comtech With fulfill turn their growth our looking video at come. we’re I’m global demand for data voice, We increasing at backs, communications. that and for to secure for

shareholders November on Given payable today the outlook, of our quarter Directors common of of at October our XXXX dividend record XX, Board to XXXX. fourth for the of per close on business business XX, declared fiscal XXXX strong $X.XX a share, of

to dividend great we grow our is our to believe business return continue a We the to shareholders program as future. way into capital our

I’d like the Now, proceed question-and-answer to to conference of period call. our Operator?

Operator

will [Operator We Financial. question take our Noble with Please Gomes first go ahead. from Joe instructions]

open. Your line is

Joe Gomes

Good afternoon finish and to nice great quarter year. and the

Fred Kornberg

Joe. you, Thank

Joe Gomes

you bit are you two happening more programs? on the where Just provide and troposcatter XXXX you programs, wondering those, those BFT a if where you little the on might guys think might see on in talk

Michael D. Porcelain

mention are First, forward. Joe, information give areas me I’d Having guess, take put on you and of guidance we in said XXXX. and that in I what that let like that, two some our can foresee to those none we

of sorry, determine Marines becomes real. it’s the starts whether I troposcatter am in in tell. in their process, we is by or Xst. be in which year, the And projected That government award technical the is That’s as in and been October really fiscal requirement obviously. year, The the evaluation U.S. Marines a next finalized will next army understand, situation has can’t as we -- said, funding the that the October to really January

very it, that. anxiously we’re more you on tell waiting, So, positive we we than but can’t are

The area. on second BFT the part

That statements at the while be anticipated BFT-X with the transceivers for and receive of did XX,XXX periodically moment. for As our to you to we know, accrue point back, to happened, than kind better has a that there the that with transceivers the would Army’s X,XXX follow-ons diverted is use that almost that has those not We been program. probably X,XXX something transceivers. of

program the you now, further any develop some say what the now program BFT-X from development have will Army. to seen, that called we will received the BFT-X or what from development the two programs Army was we really that and not fit I get further new think, as the program see let’s of office requirements -- further and into usage

to least, that BFT-X to to program I as a the the of going So, think appears BFT-X. to at rather Army kind push it us it has right than decided total and fixed

Joe Gomes

think enterprise that finished? the appreciate you get Thank Okay. what on answer. takes, repositioning, is guys repositioning how know difficult I update. somewhat do else to to I need that have a to But, you there that do long that much And it. you this for all clear tech do

Michael D. Porcelain

a two-pronged answer. of sort It’s Yes.

would done. of The we first have. you current our continued piece We’ve is associated And I contracts took you remember, that and of been charges through set that XXXX, of And that. that with the really of evaluation is during contracts. portfolio customers some to kind we if largely say

still of to We’re done. work trying But two part that them. is through process or one of the

companies we’re the I and different in into. that with call, had then, been the mentioned the a that to of of been actually the I So, and they we location that contracts lately on bid have decided on news some because have business operate restricted, lost -- not few think,

so that sort that done. piece And analysis of is and

where shifting focus we’re on we new which have into now, strength. our second opportunities best is phase, So, the the really

companies, capabilities carriers. we just do or for with, give to say, of let’s and in but you sense, instance. companies We mobile providing we’re actually [ph] in location key up data market a have location XXX% to telephone all positions a think, the of U.S. people leadership lot just And companies, Canada,

So, expand amongst not elsewhere to to in Technologies, provide only but carriers, working U.S. our we’re the world. Location ability

so effort. really sales effort. And is process ongoing that And that’s a an

type comes ways really responders focusing we’re to going that sales them be situation. saying XXX a new some market also public our of safety bring be again, on products. we’re to The trying with effort helping much to to partners, take too I’m plans, of And, the mapping it about second key our to piece, our not with when to going and again, dealing going first is working customers

there. of some time, I I is in charge a sales we’re take would had that. take launch before time that efforts So But say revenue going and Mike our that to sort cost a going largely XXXX from guidance piece say with and But, to off. you, our reflects some is Fred earlier efforts about to and that would that perspective, to talked done

We’re going more that the grow business business into new -- into and we��re now our after in phase.

Joe Gomes

out And one I ‘XX; an ‘XX, going one into better. final Great. to the the numbers ball might knocked XXXX me, be you of making for guys is guidance obviously, concern What out park gives mean, ‘XX you obstacle is looking even that that numbers? that there -- your

Fred Kornberg

probably mainly, government would it things think, I that. like funding, recession, be

probably we wise, percentage tune of the backlog of revenue XXXX think, to right XX% now. the I have

have -- guess, to and much I So, ship. we to that don’t book

get So, we’re there. XXXX, pretty confident we’ll that

Operator

Instructions] question take our [Operator Quilty Chris We’ll go with from Quilty next ahead. Analytics. Please

Your line is open.

Chris Quilty

where or specifically finished through Last Hi, had had you mentioned, FYXX the And QX, is, was to Heights question -- wanted you the exceeded line. effort. are guys. the markets follow-up you what to you already at? applications wondering product I part quarter, strength? on seeing where I second

Michael D. Porcelain

it’s added in guess, XXXX. to Well, sales, our had to that we so say we accomplishments and I more fair QX,

picking of the are just to in to it we’re grow, to We’re -- sales. that confirm terms is this going number, is up terms in less where growing, give and of probably except we business actual as either we’re information continuing

good it a yes, was quarter QX. definitely in So,

all applications over The place. the really are

opportunities. side over We’ve We’ve some Latin sold some cruise stuff and it’s well. stuff all as transportation companies. place, cellular companies. of to And in cellphone to we backhaul as the of -- in American really, line the announced, previously the the with Claro, one Japanese sold, Some

wide applications, and of is focusing has areas. on we’re this So, those product a range that

Chris Quilty

a version Got was Pico I platform you. quarter, a of low mentioned last at think, follow-up, And had something. the you cost

Michael D. Porcelain

Yes.

Chris Quilty

And product when in possible contribution market or going date and expectations it? release released of to attractive remember what ‘XX? for when the was don’t sort it’s had I But, that be for been

Michael D. Porcelain

really that yes, them. for I’m when you you terminals, we they’re you Pico. provide shortly, variations to and very when gun customers. about different want our out network, we’ve little have accessibility a many, of are have to more talked you say, publicly And they’re the you be But, going going many to couple a what There’s to a different with jump not, that about I terminals have of think but the announced there, announced bit remote the think here and them Yes. network. it, If

So, Pico to different type power, areas. to large very a product lower the of in allow that don’t able at is networks let’s they of all all really because say develop cost, need customers

-- really So, expansion need market allow it’s that’s it that for much because that really larger allowing be our within will a what’s expanded low-cost the the driving of networks total to product, addressable Heights terminal. deployed

Chris Quilty

an unfunded be gears, a or Shifting that Understand. requirement? the do to funded expected line item program, Marine Corps is tropo that you know is

Fred Kornberg

-- a Marine program. the October. have the earlier their in they They No. shifted which into government the when Corp. in combination with funding having were funding for starts But, parted ways, Army item funded year, they line fiscal fiscal It’s did the next

I as be of understand So, from what as October Xst. their will funding available

Chris Quilty

some important, meaningful? anything be Understand. less international of might programs, that ‘XX that tropo And the would but in land

Fred Kornberg

Yes.

amount moment. a a these have inordinate the number millions. know, internationally, do is We We time booking or opportunities much take the millions but than single-digit The in of Corps book. some at things chasing to that you double-digit Corps. have some the at as large Marine in the But, program obviously of smaller we’re the even rate Marine

So, it’s a cycle. booking long

come the the really we’ve it’s So, got some difficult but in. biggies opportunities, to of will tell when exactly

Operator

on our no the questions I program turn are further to this will And line the at there time. presenters.

Fred Kornberg

to joining with us Okay. Well, again Thank today. in you thanks much. December. again you speaking very And forward look for we

Operator

disconnect. for This you may Thank today’s now participation does conclude and program. your you

Comtech Telecommunications (CMTL) 24 Sep 192019 Q4 Earnings call transcript