CMTL - Earnings call transcript Q1 2021 | Comtech Telecommunications Corp.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Comtech Telecommunications Corp., First Quarter Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, December 09, 2020. to conference like to now would turn over the Mr. I of Comtech DiLorenzo Telecommunications. Jason sir. Please go ahead,

Jason DiLorenzo

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

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

Fred Kornberg

you on fiscal our and for and quarter Thank call. us the fiscal first everyone, results we thank for full joining discussing of you, Jason, outlook the will our for good and afternoon, Today, this year. be XXXX

to this announcement a afternoon, from great see is you As off fiscal our start. XXXX

the EBITDA adjusted first expectations. exceeded and quarter sales net our for Our

million. adjusted million quarter sales net of $XX.X Our $XXX.X with first an were EBITDA

on by everyone means impact it knows, the behind is we no although of in And pandemics COVID-XX believe worst business us. forefront our is that As over, the news. largely still is

prospects, million $XXX mounting to in customer fiscal to net base, we targeted the $XXX EBITDA our our sales the XXXX and And product in As to leadership of to positions today, diversified million. with million. be range $XX approximately be million $XX are announced now earlier adjusted targeting of range

can you the we clearly off, pandemic. own despite are wave our holding are initiatives second and strategic paying the see, COVID-XX As our of

of pipeline strong. Our XXXX. And momentum of X.X ratio deals fiscal excess achieve large we a if order should remains in continues, for book-to-bill

an business Now, Porcelain, that, commentary let additional the After will me and to over line financials. about and who answers. and and Michael turn our acquisition. our will Michael Mike? Bondi, pending Then, Thank questions back our to call update our on opening will provide I President you. CFO, COO, provide the before come

Michael Bondi

Thank you, and everyone. good Fred, afternoon,

for from million first This in first million, XXXX. quarter $XXX.X U.S.-based quarter for of As Bookings to customers to were $XXX.X mentioned, customers. net fiscal The the net QX of the of backlog have a was potential XXXX of are quarter which $XXX.X when were sales, sales total us, consolidated the value finished with yet is the unfunded $X million. to $XXX.X international future the in you total decrease our not been net contracts were million. have total backlog, in XX.X% multi-year healthy into of fiscal our sales reported first XX.X% revenue. but certain quarter book-to-bill ratio in We with factor that and billion approximately we awarded X.XX. And of visibility the

of financial you with me metrics income the Now, to statement. let the respect give and commentary some rest

XXXX as QX of in of XXXX. percentage XX.X% fiscal compared to quarter fiscal profit gross was in the Our achieved the XX.X% first

COVID-XX operational order in levels delays, due disruptions, minor pandemic. of by utilization and lower higher fiscal partially of to reflects These Our costs costs. resulting increases XXXX were lower and gross factory the from travel supply logistics profit during the delays, first offset production quarter minor chain costs

our production margin resulting gross and XXXX higher and expectations net ongoing XXXX. targeting of in mix a for fiscal costs fiscal level XX% the from safety-related profit and COVID-XX, logistics sales for Given we are

if QX consolidated the mix like favorably, in XXXX did million reasonably product or or compared we XX.X% XXXX. could sales, XX.X% $XX.X of achieve fiscal XX% quarter QX. SG&A first we just million was shifts However, $XX.X as fiscal for net of to in of

majority X.X% R&D, Turning Commercial segment. in our quarter first $X.X and was net or amortization compensation historical million of trends, $X.X to quarter spent consistent the for of in stock-based Solutions million. the million Total intangibles the we with was sales, first was $XX.X spent

to and to million, acquisition, intangibles approximate $XX Looking to expect continue forward, million. compensation approximate excluding of the the impact amortization of $XX.X $XX stock-based we UHP million to pending

me expenses, impact obviously acquisition let big which address the had Now, reported our results. plan on a

with paid These XX-Q acquisition-related cost the SEC. was million approximately $XX.X further primarily with this related items million. was NG and million filed UHP amount, of to to Gilat, Gilat announced the $XX which in the pending of quarter fiscal quarter XXXX such Including costs, fiscal for During during The of these more previously first first we operating discussed litigation. $XX.X consolidated are incurred detail and GAAP the our acquisition XXX to loss termination remaining in in XXXX, the litigation settlement $XX.X million Of of expenses. of the quarter. cash merger related our

these $X.X sales. would costs, income or have consolidated been million X% of non-GAAP operating net Excluding

sales. EBITDA was related sales fiscal first Our adjusted XXXX. our Solutions basis, related of consolidated net or $X.X XX.X% segment was segment And was or for in quarter million our segment X.X% million of in adjusted sales. Solutions XX.X% EBITDA of Commercial $XX million the a of On net Government $XX.X or

million we approximate midpoint using net to XX% fiscal For consolidated of EBITDA when XXXX, $XXX of the anticipate XXXX our range targeted adjusted sales.

interest, first now incremental $X.X commitment terminated me balance our $X.X and the ticking talk Now in letter. for Interest fees expense to a related sheet. interest let includes was EPS, financing million and about flows million cash quarter taxes, of expense

UHP, interest expense total expect excluding acquisition $X.X we to our XXXX, million. now For approximate fiscal the impact pending of of

Our of quarter XXXX. in estimated rate of a tax and tax annual excludes $X.X expense the net was first XX.XX% effective discrete million

GAAP net On loss share. of was a the diluted $XX.X per line, XXXX million bottom the first or fiscal quarter $X.XX in loss our

Excluding expense expenses, quarter, incremental This Gilat. payment Cash share. for for quarter. activities in the fees interest acquisition $XX discrete million operating million the $XX.X ticking expense net the per net million income a to for first $X.XX diluted and tax non-GAAP plan included $X.X first or was used was

the payment Excluding used Gilat, in cash have activities would net million operating million. been $X.X to $XX

XXXX. a operating positive significant of expect flows remainder during generate We cash the amount of to fiscal

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

a secured credit in times. maximum Our as leverage as ratio, ratio our times allowed was X.XX X.XX of current compared defined to facility

mix Before Based Mike fiscal to product on with expected to it the from anticipated we our quarter XXXX $XXX business in adjusted timing turning million. $XX.X range expect a $XX.X update, for EBITDA approximately approximately range let over on to million, second net $XXX performance. color assumptions, provide me additional and million to some sales of

fiscal to fourth the growth XXXX, expect the targeted be quarters sequential we For peak. with quarter our remaining in

hand over to will Mike it I Mike? Now, Porcelain.

Michael Porcelain

Mike. Thanks

still is impacting As earlier, mentioned COVID-XX our Fred business.

I precautions arrangements recommend. constrained using We in Despite remote me to continue efforts contract in this, and the advisories first business established practices great terms think about effect, lead of of it talk government team's discuss related working of so travel will quarter. most remain will performance, a the most and expected nonproduction operations Commercial was to business have conduct safeguards. as long have these social segment. And and our are direction let us. These business Solutions our success we wins distancing where

million QX book-to-bill spike XX%, million sales. ground resulting this have is last in caused COVID-XX considering geographic where technologies, seen a fluctuation a our was bookings normal recent station the the affected which in And of segment. Bookings quarter in compared of the although for markets is mainly which for right. were sell not we cases of a this satellite $XX.X by of the on segment about international we as COVID-XX, decrease it international in ratio X.XX. Here, bookings many the $XX.X and the our this net prior sales to Bookings bookings Period-to-period shift million were $XX.X in past many quarter, there impact COVID-XX two than to were year, were this our at of each quarter, of to bad quarters. the in good higher of achieved tunnel. we quarter believe Bookings relatively is light a in end

upgrade modems $X.X Tier command our received enhance to capabilities. with for U.S. latest and our We advanced in we support well the or large as mobile company SLM-XXXXB largest in a its we from single awarded SCPC a to selected networking our who our million X a from orders as to a million in from Naval $X.X Warfare million station $X channel modems. order heights A telecommunication CDM $X Asia, Systems also equipment significant contractor government important satellite number for for million delivery And firmware the including defense network satellite upgrades. received of ground fact, upgrade. satellite backhaul equipment order order Information carrier, existing and a from In satellite generation modems platform expand Africa, who specified improve an orders, per were network entity XXXA

was quarter of as sales location last compared lines, net Now, safety This first decline timing public to lower expected and related. mostly onto and year. our technology product fiscal were XXXX

anticipated mobile As solutions ago we our certain large wireless operator. result would U.S. purchasing call few of network contract XXX our AT&T a routing a as disclosed, another a large years previously that from receipt cease of of

Also on the has quarter public $XX million increased impact NG but absence the Our strong. offset during business solutions. they date, fiscal of XG related products Carolina. South design, state to recently technology our by demand the appear our our operate sales first location-based such contract and and in location for been solutions long-term we the work of COVID-XX relatively awarded mobile commenced for of technology of to were services most to sales virtual safety XXXX reflected AT&T, quarter, our XXX and of To recent part muted deploy

their their resulted of critical XXX several and COVID-XX the solutions, some safety are recognizing Generation upgrading states and Next budget the increasing has announced key trade municipalities cancellation for funding of public we Although systems. other XXX in importance constraints, customers believe shows

And contribution with announced revenue our this of a net was supporting Next Image South provide coming has location-based mobile during XG, also operator initially Pennsylvania. on services of Arabia for X-year meaningful with Solacom of not the in renewal a received its which of booked a contract really Tier heels to of uses X both of first active for Generation the networks. fire renewal XXX $XXX.X service. state location quarter anticipated provide million M-to-M to $X.X Guardian Telefónica in which performance, which and valued have the We Carolina, multiyear Africa, the contract Rid of funded million at other received we And or of data and We fiscal we command XXXX, including for rescue November operate X global the we to radar started which supports orders Intelligent police, XXXX Middle quarter. for we fiscal and services XXXX. quarter XXX based motorcycle its that and Tier to received second announced points with operator. achieved a This to to Saudi awarded off our machine-to-machine with the services in technologies up city Europe, East the update will in the begin XG feature We with development 'XX to the design, fact, great location received Commonwealth received were for Based and contract XXX to we services, The a second and the received timing the value XXXX. Commonwealth fiscal aggregate, contract communication segment sales large a mobile valued for maps million ride our a contract location In million from requirements and our bank. company insures higher contract for we total Indian the remain that for of use this a and U.S. cases. Canada. contract coverage be customers contract adopt and Next and the we extension $XX win us, a as includes earnest statewide expand system In the on amount options, XXXX. July customer We in to contract Generation contracts to Edmonton, award $X.X workstations Digital of we mapping our deploy for $XXX.X be their contract during research In number worth overlooked, XG a and million other than passive important $XXX.X million bookings. and company, in we expect optimistic come provides network solution services up in

were Global timing QX Now We as Tactical ratio of during of EEE, our the mission-critical global funding of at for let sales XXXX quarter technologies included 'XX Solutions new and electromechanical systems, QX Human orders a first mission-critical performance million Cyber in communication following, quarter $X funding QX and million with last on XXXX. for quarter military in first statewide additional for the bookings to million extension from and with our training of were Solutions related or fiscal of provide normal CGC. contract the services. for fiscal segment electronic fuel satellite-based an the me the to Department Period-to-period satellite U.S. in sales here, Communication amount nominal XXXX government at reliability, known primarily XX-month X.XX. support during $XX.X of our turn the to net contract; Net compared The a a high well. million space $X.X to orders does of additional acquisition with sales Maryland's It in IT around sales, Receipt to of the technologies segment of terminals of Course, million January of for our commonly orders electrical, Government services reflect $XX.X services or Joint components. a bookings as our Government included as GTACs U.S. book-to-bill contract of is or world. Advanced fiscal our JCAC, were on Army on due for this came $X.X year, our XXXX provide the of segment in solutions. additional fluctuation Analysis to our existing from X excess lower received of fiscal

of to We man orders Baltimore. U.S. to city multiple Army. also $X.X and terminals, And ongoing received for networking of million funding advanced continue to critical of And services SNAP. VSAT staffing the to other it provide to orders to finally, agencies products included to million supply $X.X sustainment pack equipment other of $X.X provide Army IT U.S. additional satellite the the million within

and seeing governments interest are delays military foreign customers. our we order continue to have customers strong the see respect contract the this of During and some order next-generation in international contact the market-leading of ship opportunity support military initial both we we $XXX for awarded awards, With mentioned, the make U.S. from Comtech's fielding same prime XX-year by recently multiyear first our COVID-XX delaying on million I We to our troposcatter expertise. and IDIQ we quarter, technologies U.S. systems and progress segment, provide believe orders a to to to troposcatter continue this U.S. common us also in potential previously Marines. At as terminals. time, contractor introduced validates seen to from

Fred the and In in facility fact, antenna XXXX, to but impacted in of cases this reflected area. spike orders due that the earlier. costs Mike that we our certain December that ability production guidance and deliver about U.K. in our is closed to temporarily all COVID-XX spoke Obviously, a in in has

temporary and and demand strong. In long-term addition, believe government these solution we issues are remain technologies products our for

forward, achieved slightly the similar XXXX sales this fiscal or in fiscal will higher than for As we amount such, looking net we segment believe be XXXX.

quick to one before back Fred. have turning I Now comment it

to regulatory terminate UHP get not finding solution we December was acquisition. that a the acknowledged all filing the and if discussions may And at to XXXX, approval But by for date, that continue that process review SEC we milestone. remain in critical party either we here, front, ongoing and prior We regulatory acquisition focused XX, Russia. with UHP parties. the do a said, on On hopes have works

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

Fred Kornberg

Mike. you, Thank

business As particularly customer all mining of the performing performing wave clearly our positions first and before here, with our second we're leadership from quarter. despite pandemic. own the and With our are in holding base, very mentioned results both as prospects, pleased product COVID-XX heard I and diversified you we Mikes the

for our on declare Directors business close Board first at XXXX. of share January business dividend quarter XXXX payable Given of our XX, shareholders outlook, a of the record to to on 'XX, the of continue February fiscal per common $X.XX XXXX, of

to to program business. look shareholders continue that capital believe our We our is return way our we great grow dividend a as to to

conference the question-and-answer call. proceed Operator? of Now part to to our I'd like

Operator

[Operator our Capital. Gomes from from Instructions] We Joe question Noble to take are going first

Your line open. is

Joe Gomes

Good evening. quarter. Congratulations on the

Fred Kornberg

you. Thank

Joe Gomes

wanted Generation success having there. So, on first here I XXX, some Next a you to talk just be the bit could fantastic guys little

to really the you other a think these what's time? what working in you one kind is rate in driving ones. Is do Are two like guys that I for -- at one win of trying assume What's the Just the competitive of in bigger large get still were here you would picture point you guys see said guess, available? is state last environment? Pennsylvania. the the you this business on I wins? call, I pretty

Michael Porcelain

our marketplace. And extremely competitive that we're the pleased the with Sure. Well, Commonwealth from really win I we the is, categorize way in fair it than winning contract we're of we think share. yes, got would And Pennsylvania. the it's more

we've all fact, state Coast, Massachusetts, if past of the Carolina Washington the of on done In the with And now most, of South West the not Pennsylvania. contracts. large Commonwealth we're in mining and so

we're that's yes, XXXX, year year, our on to large but prior competitive, that But year do we'll products, And is we it's the there. state. by contract our calendar and And opportunity we probably year, like very calendar the our awarded And see a in extremely demonstrating see develops. states, is and optimistic So activity fiscal that winning. we'll think excellence a is how there. we're next experience how we're that in it that will not significant winning be and we and taking although there we're it out some state technology really

but our in great. it's experience, competitive, technology So doing we're

Joe Gomes

finish the little come And not this has deal you seems what on line talk yet. UHP just guess, holdup the a what focused I in the to are to to mean, I fruition can getting if the I acquisition, on the don't bit. that's be Russian authorities, thing

Michael Porcelain

Well, describe of normally has the typically know best that the kind year, meeting a where of to way I is to Russian because they since COVID, only we meetings had could February. the And acquisitions. government they've five it decisions make related these four one

we're the I We specific dealing in we're through negative sort any of government behind tell but meetings caught of COVID specific but has government can that somewhat it. not to has So And this understand government government posing any has, think aware work that But we're impact we're way, it. of you just process. lengthy opposing general told what certainly speed up that we Russian Russian without COVID-XX of specific in anything impacted We're the haven't just parties or had these are any They has be the would which Russian the and both of they the the oppose us transaction the the that the question. aware the with. reason reason that. that really would that's not not delays not of think door bureaucracy, Russian

Joe Gomes

jump for back Okay. one queue. me, One last in I'll

in Or percent a for seem run the million a and little going I if expenses those also you have look will $XX.X elevated our reined SG&A rate some? the been So, sales. forward? here then is your there, think going to do of Anything be quarter, that in on quarter-over-quarter, as year-over-year sequentially,

Michael Bondi

this Joe, is Mike.

issued of non-equity just we the the to units. comparative that share our were terms that quarter, and in QX, you mind bonuses to In fourth in had doing QX keep

get So, you bump a little a bit of there.

Joe Gomes

sales, percent XXX of about year-over-year they think, up, basis Okay. as were a I And points?

Michael Bondi

cost-saving terms last of measures I to rate QX, historical we'd level of business, percentages, had expect, year. in try there. And run our the of we would Yes, relationship mindful hold QX of in our be historical done expect back for the to some

Operator

comes Our Chris from Quilty question next Analytics. from Quilty

Chris Quilty

your flat to seeing you seeing or you're talk Guys, the Earth that to can follow in line just you're end specific about in what slowdown uptake market And where trends product up, you is expect technology? or guidance 'XX, provided. station think, correct? or demand either the you there, It's either I by product wanted in -- by business be trends

Michael Porcelain

call mean, categorize I you market, the on sluggishness, experienced small what if delays certainly could international it, you we've would the orders. Look, I seeing, seen we're as an will. order

categorization that is are business to of the vertical in a I at transformational, winning there. a they're not tell we could that the satellite marketplace. a cruise multiple But there we multimillion-dollar are ground which other our exist multimillion-dollar ones contracts the from for line participated, multiple activity want of don't We're to don't don't flat, we on I terms water that we perspective that those we word large that contracts. any are the hand, or either a in whole talk phrase. to the much shot contracts, are. opportunities mean, In portion and markets that on I of believe -- despite that get of working number And we've use competitive about see contract opportunities in too that good there the want that you station the the but us have there But market use

there we're interest extensive a seeing our activity of lot in products. and so, And

Chris Quilty

And LEO projects? of are related some these broadband

Michael Porcelain

Yes.

Chris Quilty

satellites upgrades due very high side with technology the throughput capacity of satellite or online? customer issues outside terms where seeing And are to coming in there supply anything other you're that on of refresh major new

Michael Porcelain

is, Yes. yes. answer The short

called products least our quarter, it's I always the still. $X probably sales good The out, we're we on QX long it talked COVID. being we've order I cycle and which -- heights longer at now activity mentioned about seeing million of Although think because

a in pretty the So stops, if bigger how smaller the broad-based. seeing we side, you and see because it's plays that on we on see. we'll hand, But it's out. pretty and But sluggishness orders it are year smaller other active, But the the slowdown see we and it's It haven't really seen starts and more consistency sales will, a probably to going in was up needs that start year to increase jump stops. a to to time bit its through. was way yet work And flow customers like and fits order about are ago. it little in

Chris Quilty

to forecast Great. in next Presumably, time beyond Government the or we that another sequester get morass? That's question. budget And the in shifting put outlook. short-term we're other stuck your a couple assumes and some something for the period months, that of budget gets not place in of

Michael Porcelain

of it, just not the to the digest actions I we're yesterday about concerned or had And mean, we'll our happens to we're healthy because share, speak But our out. us get kind a budget I change the we'll in will what segment look, in the -- plays we're some they government in and we it, hold about we've before I happened. not obviously backlog day of budget be fair haven't compromise a whatever. terms really budget. but Yes. will with But got it see passed not how specifically see of budget, something or I I just think through pretty can't the think it administration. what nervous chance internally but

that rest the and good on. for year, good We said, we I the have, participating we're on the of know working backlog. the We about we're feel that opportunities programs like pretty

Chris Quilty

experienced worked you. it's worse? same issue. at Have the Got other or of allow it I And type issue, that from your in what they sporadic equipment. be you biggest COVID reports Is mention government you government in companies terms the did deployments? better more that in of effective delays is terms policy And some you've to order customers sense in to through think happen procedures I've fielding with getting deploying around heard or

Michael Porcelain

not it both. better, not of bit it's little getting a characterize would worse. but as It's getting I

to guess stuff months. the think channel. I that that placed the delayed So coming or been will And with will in and come few the something through dealing our with is continue were it's we've I vaccines marketplace, for a rebound the hope not to that orders last see

Chris Quilty

final the And you. big XXX congrats question Got win. the on business, on

a I than there had more those one this year? are you of implied possibility think you that think that be may

Michael Porcelain

that ones talking that feel we much to And Well, that opportunity. about And talked alluded we XXX other But about. two haven't the right. large we're about. things going we one we very as comfortable we competition. or mindful you definitively large have them. But really opportunities be we yes, opportunities opportunity when are had pretty are to There there other feel progress going win, And we about, we're channel to And not hinted or them, fiscal this can't other we're would the through to win. not sales and whether say opportunity say are or to they obviously, come second although year. the one out of we in but feel there. I going But are we're opportunities, opportunity, going the pretty talk too comfortable pretty we're good

Chris Quilty

obviously, Great. imagine. can't these you the some that's What's of provided CARES the some are the Act, I'm because, of tax would municipalities revenue? in be through of a coming see, I money, on a had environment, to And government but have way and the and programs next supportive lot sure down package states spending whether funding that chance

Michael Porcelain

impact as think I no relates to us. it market, U.S. the to Well,

that's launched seen, Canadian the Canada. favorite Chris, in on we recently have On our out of in government based there, hand, other particular, some specifically the funding the satellite customers one to

very international we've start seen happen. yet, a a that we'll we governments since the of them. things haven't feel optimistic other And will we some But specific the funding So satellite pretty to going one from received to infrastructure, we based use think funding from they benefit impact But we're on think And us that to need get. only those instance orders but we're of form going the communication get there. infrastructure. orders we to are as

Operator

comes Our next from from question Citigroup. Asiya Merchant

is line open. Your

Asiya Merchant

good Thank and on quarter. a gentlemen you, congratulations

year. Just maybe XX% margins And guys us knowing paying year, obviously is there here should to where about takes last I quarter to the say, to Mike lower, a flow. through sound consider, And optimistic, some to you cash then at lower flow that midpoint, were macro on for first we EBITDA but think should and Gilat? margin large have Can the closer payment to of adjusted walk around -- gross the cash as I slightly How referred the pretty the question that? you also relative a follow-up XX%. guys to was be you which is puts obviously than could

Michael Bondi

this is Mike. Asiya,

So But mindful large had to just were We government fiscal we in yes, when themselves, for we're of and the I the referring first very year as midpoint wanted what's there. and about referred and XXXX thinking period. in that guide in for disruptions terms timed be that of Mike some of known of trying to terms news, margins terms have EBITDA. for of some in year, orders mindful your the delays, the to for to lumpy the be question, full here was the some gross we

around we profit quarter. But be we for So like obviously ended doing as were gross those XX%. QX, in margins out, had affect We to thought will clear going that the the XX%. up

So it's to going in as range. that deliveries, these work be we through

from expect the for And cash remainder mentioned, free the as we positive to the of we flows Mike an South cash when contract. year, as Carolina programs. operations won we'll deployments support probably for year, we our there, to And recently, about the Commonwealth of levels historical Pennsylvania in uptick reminder, those cash see In think of see significant flows. CapEx a flow very of itself, terms flows, one, the you large cash terms had do of free also state and the from of of contracts,

Operator

[Operator Instructions] Jefferies. have McNealy Kyle question We now from from a

Your line is open.

Kyle McNealy

year-over-year product ask quarter the us revenue was station and I you that wanted if products ground to for satellite growth in vertical? tell the the what could for

Michael Porcelain

whole a generally that, our about made Yes, for line line know, business but probably we or break in minus. out the past is have so, product Kyle. you We, as our that or segments, -- plus don't XX% comments we as

But the tell put on you we it. there. way think don't want a competitive that's reasons, would to to for just number about I obviously, So

Kyle McNealy

give range trying growth a for recovery get Okay. of of yardstick rate? Can a us sense growth rate the year-over-year? Just for you last quarter? kind the kind a any of or to It's

Michael Porcelain

for Well, think it's the have year the I aggregate fact our dollars think the you or commercial public business and year, on segment, in going a mindful looking of it It's to XXX few being we're that could minus the A services plus segment. our both relationship. and in at change commercial similar, segments. each not relatively routing can for million about the AT&T of But flat. in safety being our that the

So to tell if talk I way you would you think want to the picture, about that's it. big

Kyle McNealy

is slow and there do forward, to benefit get going some little do coming shows of it's do the grind there and virtual recovery? satellite expect doing you of go back? take in I you face-to-face station now trade that impact Or time? for biggest that. that of business? be could you meetings, can Or previously the to or And Okay. you're Once COVID ground past it the more to from do back? know fact potential a you meetings like said SNAP impact kind expect that you a is be things Do the you the SNAP of a you that the think can't bit going bulk

Michael Porcelain

rest for and market, slow as be the grind one. mentioned to there's In year. Well, market relate in MEO more the fact, a market. opportunities the GEO But call, we're and than the conference thinking well. in I the LEO They that it's large going of earlier these to the

just it. we're these we way word because get I revenue long sluggish. be. program do are the it would really the year. this to awarded changer, But we multiyear how see guidance and are in the it's quarter, our business regular would be really -- don't situation. were there's EBITDA But want an be And upward for And So, a business contracts. of game use binary not seeing I we these thinking They're mindful it's that's type that we're one some that yes, of ones or those possible it now, on awards our that the our really could large of jettison not but them being trajectory,

get people Let's vaccines. see how to

people see get Let's how planes. on

to are over it's where thinking to being to subscribe money things faster. back wrong sluggish. be we that Let's be see don't turn going But going is maybe we'll It's spent. the belief night, will but and we're things come

Kyle McNealy

has term, do COVID? in get there long-term think station? how takes, kind you once cellular we long kind of not rate velocity, the once of growth same that changed versus all the is the Or longer it's the do COVID? kind market reminding recovery rate underlying on And you pre rate weighs lasting COVID versus at pre impact in Or but growth escape that growth from for the think any the of

Michael Porcelain

their for what's in across world the upgrades increased to right, field. using up using They have have on out There's not very now, want the many and and been people there's You the right long-term the that that in we been a it right? upgrades go And our any could doing have possibility thing banned the possibly capacity video sincerely -- in anybody say can't states is, product. the demand because system. happening don't countries

capacity. increased people So are

over So and going or need home, remotely if need in the increased communicate communications satellite, in increased mobile to to result work an on network. going do and to going video that's and people result a their backhaul, video from from to to offices less traveling, it's are cellular an

large has these than in about, And it's in that rate our very thought are survivor. demand the argument and what in maybe tell COVID can I you yet increase we're at we didn't result as and what make in happen. talking what are those marketplace, in happen. would months you're there have see an to view. But result really you LEOs crisis and the a programs a Company to will But of to And ago. that big time certainly in But supported in going change these going am, a the fact, some large programs actually think we're being are, we compelling negative it. faster will it by not shown the companies So nine long-term GEOs peak growth is a bigger the strong the

Kyle McNealy

to Okay. it's you marines. previously had Great. I one might may helpful. -- certain contract said couple passed And you you may on provide XX% awarded? you value, with more know last that quarters the of that deliver into of XX% total any but within you asks was Do contract dependent we're That's that and or it contract? to visibility one how any allocates prime yet, level the there have now on the not that Is a more visibility contract do? the of the it's much either you that services to really when the troposcatter contractor

Michael Porcelain

the there's that design but well with within in change of program. really yet. as There kind to get opportunities is Yes, there. out for need the the our about talk get no changes and our nothing end really and the to program prime, them thinking been initial on We as do to -- us customer deliveries

Operator

I time, closing will this there I our do questions. have for one further back actually, to no turn Oh, presenters over now remarks. more are question. At

up. Someone queued just

take question. next will We our

Aditya Dagaonkar

on Aditya of is Michael This behalf Latimore.

you to situation? to COVID you is, face question any supply my do the So due chain difficulties

Michael Porcelain

would we them. and They've chain issues, I obviously we deal describe have order as caused delays would them, expenses, seen nothing but nothing we some minor some seen have categorize certainly incremental we supply some with We and material, but know that material. as that

Aditya Dagaonkar

And a next lot right. in quarters? All right, hirings you foresee all more few the do

Michael Porcelain

people we're a these developers, hey, Well, to always us people, yes. if software Comtech, to accountants, give we win ring. come a want work Comtech production you're for Sure. you some for good But of person, contracts, if engineers, to great big looking work for

Operator

Now will have further our program final now turn to at this do the presenters any we remarks. back closing for time, not questions. I over

Fred Kornberg

the us and you Thank very call. Thank March. Yes, guess end you Okay. speaking that's again forward in we look to today's today, again with I for you of much. joining

Operator

conclude program. today's This your you for does participation. Thank

You may disconnect time. at any

Comtech Telecommunications (CMTL) 10 Dec 202021 Q1 Earnings call transcript