Slide 1: Q1 FY23 Earnings Presentation
Q1 FY23 Earnings Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information in this presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on current expectations, estimates, forecasts, and
Slide 3: ONE Comtech
ONE Comtech The Market currently sees Comtech as a collection of independent businesses, operating in silos The opportunity is to bring the company together to become "ONE Comtech" By becoming one, operating on common tools, platforms and processes, we: Amplify Our Voice with Our Supply Chain Improv
Slide 4: Vision for Growth
Vision for Growth Satellite and Space Communications + Terrestrial and Wireless Networks Convergence of Satellite & Terrestrial Communications Infrastructure Will Enable us to: • Extend our MNO Value Proposition Beyond NG-911 Public Safety Vertical to the Broader Global 5G Infrastructure Transformat
Slide 5: Comtech is Well-Positioned to Exploit Inflection Point in the SATCOM Industry
Comtech is Well-Positioned to Exploit Inflection Point in the SATCOM Industry A Leading Global Provider of Satellite Ground Station Equipment Including Satellite Modems, Satellite Amplifiers, and Satellite Antennas Accelerating Growth of “One-Stop-Shop” Approach Rapidly Growing . Low-Cost Bandwidth
Slide 6: The Satellite Ground Station Equipment Market is Expected to Grow
The Satellite Ground Station Equipment Market is Expected to Grow Comtech Strategic Position • Leading provider of SCPC modems High-Performance Innovative & Scalable Solid-State and Traveling • Provider of revolutionary TDMA technologies SCPC Modems TDMA Modems Wave Tube Amplifiers • Leading provide
Slide 7: Comtech is a Leader in the Next-Gen Public Safety Market
Comtech is a Leader in the Next-Gen 911 Public Safety Market Comtech Strategic Position • Frost & Sullivan named Comtech as the fastest growing NG911 provider in the US (Key wins: Massachusetts, Pennsylvania, South Carolina, Arizona, Iowa, Washington, Maine, Ohio) Software for Cellular 911 Call Rout
Slide 8: Comtech's Two Segments Have Converging Capabilities
Comtech’s Two Segments Have Converging Capabilities Leverage several key competencies, including R&D and engineering, across both segments, to deliver superior capabilities to customers Satellite and Space Communications Terrestrial and Wireless Networks Fiscal 2022 Results: Secure Wireless Fiscal 2
Slide 9: Visibility to $1.1 Billion of Potential Future Revenue
Visibility to $1.1 Billion of Potential Future Revenue Excludes significant potential revenue associated with a large, multi-year agreement for next-generation satellite technology ($ in millions) ~$1.1B $407.2 $598.2 $668.2 $177.3 $230.0 $420.9 $477.3 $247.3 Backlog Contracts in Place, Not in Backl
Slide 10: Key Investment Considerations
Key Investment Considerations 1. Market Leadership Positions 2. Commitment to Innovation and Engineering 3. Longstanding Customer Relationships 4. Expanding Addressable Markets 5. Consistent Backlog Supports Revenue Forecast 6. Experienced and Refreshed Management Team 10
Slide 11: Financial Highlights
Financial Highlights
Slide 12: Historical Revenue Results
Historical Revenue Results Consolidated Revenue Consolidated Gross Margin ($ in millions) ($ in millions) $671.8 $616.7 $247.4 $570.6 $581.7 $223.9 $226.8 $214.0 $486.2 $179.8 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Satellite and Space Communications Revenue Terrestrial and Wireless Networ
Slide 13: Consolidated Quarterly Results
Consolidated Quarterly Results Consolidated Revenue Consolidated Gross Margin (%) ($ in millions) $131.1 38.1% 38.2% $127.0 35.7% 35.9% 35.7% $122.1 $120.4 $116.8 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Consolidated Adj. EBITDA Margin (%) Consolidated Net Bookings ($ in
Slide 14: Satellite & Space Communications Quarterly Results
Satellite & Space Communications Quarterly Results Revenue Net Bookings ($ in millions) ($ in millions) $135.8 $80.9 $76.8 $69.2 $69.2 $64.6 $85.6 $76.7 $59.4 $59.7 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Adjusted EBITDA Margin (%) 12.2% 10.2% 7.8% 3.2% -2.0% Q1FY22 Q2F
Slide 15: Terrestrial & Wireless Networks Quarterly Results
Terrestrial & Wireless Networks Quarterly Results Revenue Net Bookings ($ in millions) ($ in millions) $83.1 $52.2 $53.0 $51.2 $50.2 $50.3 $45.4 $26.9 $26.2 $27.8 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Adjusted EBITDA Margin (%) 23.2% 21.0% 18.4% 12.9% 11.9% Q1FY22 Q2F
Slide 16: Historical Bookings & Backlog
Historical Bookings & Backlog Bookings Total Backlog (2) ($ in millions) ($ in millions) $755.1 $724.1 $683.0 $623.1 $584.4 $658.9 $445.5 $630.7 $620.9 $618.1 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Note (1) Comtech’s fiscal year end is July 31. (2) See slide 9 for additional information r
Slide 17: Historical Research and Development Expense
Historical Research and Development Expense Research and Development Expense(1) $ in millions $70.8 $71.1 $64.1 $62.8 $62.4 FY18 FY19 FY20 FY21 FY22 Notes (1) Research and development expense includes company-funded and customer-funded. (2) Comtech’s fiscal year end is July 31. Source: Public filing
Slide 18: Historical Annual Operating Results
Historical Annual Operating Results $ in 000s 2018 2019 2020 2021 2022 Revenue Satellite and Space Communications $ 411,802 $ 497,055 $ 411,073 $ 374,850 $ 279,678 Terrestrial and Wireless Networks 158,787 174,743 205,642 206,845 206,561 Total Revenue $ 570,589 $ 671,797 $ 616,715 $ 581,695 $ 486,23
Slide 19: Recent Quarterly Operating Results
Recent Quarterly Operating Results Q1 Q2 Q3 Q4 Q1 $ in 000s 2022 2022 2022 2022 2023 Revenue Satellite and Space Communications $ 64,560 $ 69,180 $ 69,150 $ 76,789 $ 80,873 Terrestrial and Wireless Networks 52,199 51,201 52,966 50,194 50,266 Total Revenue $ 116,759 $ 120,381 $ 122,116 $ 126,983 $ 13
Slide 20: Historical Balance Sheet Trends
Historical Balance Sheet Trends Consolidated Balance Sheet Jul. 31, Jul. 31, Jul. 31, Jul. 31, Jul. 31, $ in 000s 2018 2019 2020 2021 2022 Cash and Cash Equivalents $ 43,484 $ 45,576 $ 47,878 $ 30,861 $ 21,654 Working Capital 114,477 134,967 117,385 83,935 69,874 Total Assets 845,157 887,711 929,647
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
Reconciliation of CMTL GAAP to Non-GAAP Financial Measures Adjusted EBITDA Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Reported net loss $ (5,984) $ (21,874) $ (25) $ (5,169) $ (11,096) Income tax (benefit) expense (2,053) (3,276) (771) 2,077 (608) Net interest expense & other 1,826 958 532 1,012 1,980
Slide 23: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
Reconciliation of CMTL GAAP to Non-GAAP Financial Measures Q1 Q2 Q3 Q4 Q1 Earnings (Loss) per Diluted Share 2022 2022 2022 2022 2023 GAAP loss per diluted share $ (0.43) $ (0.89) $ (0.06) $ (0.26) $ (0.46) Amortization of intangibles 0.15 0.15 0.15 0.15 0.15 Amortization of stock-based compensation
Slide 24: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
Reconciliation of CMTL GAAP to Non-GAAP Financial Measures Adjusted EBITDA 2018 2019 2020 2021 2022 Reported net income (loss) $ 29,769 $ 25,041 $ 7,020 $ (73,480) $ (33,052) Income tax (benefit) expense (5,143) 3,869 2,290 (1,500) (4,023) Net interest expense & other 10,449 9,280 5,864 6,682 4,328
Slide 25: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
Reconciliation of CMTL GAAP to Non-GAAP Financial Measures Net Income (Loss) Attributable to Common Stockholders 2018 2019 2020 2021 2022 Net income (loss) attributable to common stockholders $ 29,769 $ 25,041 $ 7,020 $ (73,480) $ (43,268) Amortization of intangibles 16,228 14,086 16,620 16,185 16,3
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