Slide 1: Q3FY23 Earnings Presentation
Q3FY23 Earnings Presentation
Slide 2: Forward Looking Statements; Use of Non-GAAP Financial Measures
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: Who We Are
WHO WE ARE We are a leading technology company providing innovative solutions and services to commercial and government customers around the world We are relentless in our quest to solve our customers’ toughest challenges We are uniquely positioned to improve the global connectivity landscape and em
Slide 4: Fast Facts
FAST FACTS: Company Satellite and Space Terrestrial and Wireless • Founded in 1967 • Comtech holds more than 80 granted patents covering satellite • Leader in Network Based Location • NASDAQ listed in 1988 provider – 100% 5G market in communications North America • Melville, NY headquarters • Soluti
Slide 5: One Comtech
ONE COMTECH The Market has viewed 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 Improve Op
Slide 6: 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 7: 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 • Provider of revolutionary TDMA technologies • Leading provider of SATCOM and RF microwave amplifiers • Provider of advanced X/Y steerable satellite antennas • Developing n
Slide 8: Comtech is a Leader in the Next-Gen 911 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 Software for Cellular 911 Call Routing Carolina, Arizona, Iowa, Washington, Maine, Oh
Slide 9: 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 Terrestrial and Wireless Communications Secure Wireless Networks Technology Communications Fis
Slide 10: 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 $386.0 $184.5 $550.8 $668.4 $201.5 $366.3 503.6 $302.1 Backlog Contracts in Place, Not in Backlo
Slide 11: Financial Highlights
Fluent in the Future Financial Highlights COMTECH.COM
Slide 12: Historical Net Sales and Gross Margin Results
Historical Net Sales and Gross Margin Results Consolidated Net Sales Consolidated Gross Margin ($ in millions) ($ in millions) $671.8 $247.4 $616.7 $223.9 $226.8 $581.7 $214.0 $570.6 $486.2 $179.8 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Satellite and Space Terrestrial and Wireless Communic
Slide 13: Consolidated Quarterly Results
Consolidated Quarterly Results Consolidated Net Sales Consolidated Gross Margin (%) ($ in millions) $136.3 38.2% $133.7 35.9% 35.7% 34.3% $131.1 31.7% $127.0 $122.1 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Consolidated Adj. EBITDA Consolidated Net Bookings Margin (%) ($
Slide 14: Satellite & Space Communications Quarterly Results
Satellite & Space Communications Quarterly Results Net Sales Net Bookings ($ in millions) ($ in millions) $135.8 $137.5 $82.2 $80.9 $80.4 $76.8 $85.6 $77.5 $59.7 $69.2 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Adjusted EBITDA Margin (%) 12.2% 10.2% 10.2% 7.8% 7.7% Q3FY22
Slide 15: Terrestrial & Wireless Networks Quarterly Results
Terrestrial & Wireless Networks Quarterly Results Net Sales Net Bookings ($ in millions) ($ in millions) $83.1 $53.0 $53.3 $54.1 $50.2 $50.3 $45.4 $27.8 $30.1 $25.3 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Adjusted EBITDA Margin (%) 18.4% 16.5% 16.9% 12.9% 11.9% Q3FY22 Q
Slide 16: Historical Bookings & Backlog
Historical Bookings & Backlog Bookings Funded Backlog (2) ($ 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 10 for additional information
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: Recent Quarterly Operating Results
Recent Quarterly Operating Results $ in 000s Q3 Q4 Q1 Q2 Q3 Revenue 2022 2022 2023 2023 2023 Satellite and Space Communications $ 69,150 $ 76,789 $ 80,873 $ 80,407 $ 82,249 Terrestrial and Wireless Networks 52,966 50,194 50,266 53,318 54,067 Total Revenue $ 122,116 $ 126,983 $ 131,139 $ 133,725 $ 13
Slide 19: Historical Annual Operating Results
Historical Annual Operating Results $ in 000s 2018 2019 2020 2021 2022 Revenue Satellite and Space Communications $ 411,802 $ 497,054 $ 411,073 $ 374,851 $ 279,678 Terrestrial and Wireless Networks 158,787 174,743 205,642 206,844 206,561 Total Revenue $ 570,589 $ 671,797 $ 616,715 $ 581,695 $ 486,23
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
Fluent in the Future Appendix COMTECH.COM
Slide 22: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
Reconciliation of CMTL GAAP to Non-GAAP Financial Measures Adjusted EBITDA Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Reported net loss $ (25) $ (5,169) $ (11,096) $ (4,805) $ (7,458) Income tax (benefit) expense (771) 2,077 (608) (222) (2,932) Net interest expense & other 532 1,012 1,980 4,246 5,114 C
Slide 23: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
Reconciliation of CMTL GAAP to Non-GAAP Financial Measures Earnings (Loss) per Diluted Share Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 GAAP loss per diluted share $ (0.06) $ (0.26) $ (0.46) $ (0.23) $ (0.33) 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
Slide 26: Fluent in the Future
Fluent in the Future” @. COMTECH