Comtech Telecomm. Conference Call Highlights

Comtech Telecomm. Corp. CMTL reported its Q4 earnings. Shares of the company are down 3 percent.

Below are some key highlights and takeaways from its conference call.

Financials:

• We reported our fourth quarter results of $89.4 million in revenues.
• For the year, our revenues totaled $347.2 million, and our GAAP diluted EPS was $1.37.
• Our adjusted EBITDA was $16.7 million for the fourth quarter and $61.3 million for the full fiscal year.
• We're extremely pleased with our fourth quarter and full year financial results.
• After several years of revenue and operating income decline, fiscal 2014 was a year of meaningful growth, and we are optimistic that this momentum will continue into our fiscal 2015.

Guidance:

• We believe that our revenues in fiscal 2015 will be in the range of $355 million to $370 million.
• We expect our GAAP diluted EPS to be in the range of $1.70 to $1.86, and our adjusted EBITDA to be in the range of $63 million to $67 million.
• During fiscal 2014, we generated $34.6 million of operating cash flow.
• Board of Directors approved a dividend for the first quarter of fiscal stockholders 2015 of $0.30 per common share.
• This dividend is expected to be paid on November 19, 2014 to of record on October 24, 2014.
• To-date and over the past 16 consecutive quarters, we have paid out over $85 million of dividends.
• In addition, during the fourth quarter of fiscal 2014, we repurchased approximately 398,000 shares of our common stock at an aggregate cost of $12.6 million.
• From inception to-date, we have repurchased approximately $436.7 million of our common stock.

Operations:

• During Q4, we generated revenues of $89.4 million, of which 27.9% were for U.S. government end users, 60.4% were for international customers, with the remainder being for domestic, commercial end customers.
• In fiscal 2014, we repurchased $70.7 million of our common stock, and we have $13.7 million left for repurchases that we can make.
• After several years of decline, our satellite earth station product revenue increased for the year as we benefited from increased sales to both the U.S. government and international customers.
• On the expense side, SG&A expenses were $17.3 million or 19.4% of Q4 fiscal 2014 net sales as compared to the $15.6 million or 18.5% we achieved in Q4 of last year.
• SG&A expenses for fiscal 2014 were $67.1 million or 19.3% as compared to $63.3 million or 19.8% in fiscal 2013.
• We expect company-funded R&D expenses for fiscal 2015 in dollars to be slightly higher than the amount we invested during fiscal 2014.