Comtech Telecommunications Corp. (NASDAQ:CMTL) Q1 2020 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 04:30 pm ET

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Comtech Telecommunications Corp. (NASDAQ:CMTL) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to Comtech Telecommunications Corp First Quarter Fiscal 2020 Earnings Conference Call. [Operator Instructions]

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

Executive
Jason DiLorenzo

Thank you. Welcome to the Comtech Telecommunications Corp. conference call for the first quarter of fiscal year 2020. With us on the call today are Fred Kornberg, Chief Executive Officer and President of Comtech; Michael D. Porcelain, Senior Vice President and Chief Operating Officer; and Michael Bondi, Chief Financial Officer.

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

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

Executive
Fred Kornberg

Thank you, Jason and good afternoon everyone and thank you for joining us in this call. Today, we will be discussing the results for our first quarter of fiscal 2020. As you can see from our earnings announcement, we're off to a great start and we believe our performance to-date provides a solid foundation for what we anticipate will be a year of both revenue and adjusted EBITDA growth.

In fact, we're increasing our targeted fiscal 2020 net sales to be in range of approximately $712 million to $732 million. We're also increasing our targeted adjusted EBITDA to be in the range of $99 million to $103 million. Also targeted is the GAAP diluted EPS range of approximately $1.28 to $1.42. As you can see, our strategic initiatives are paying off and fiscal 2020 is looking very, very strong.

Now let me turn the call over to Mike Bondi, our CFO, who will provide a discussion of our first quarter financial results. After that, Mike Porcelain, our COO will provide a discussion of our business segments and an overview of our recently announced planned acquisition of UHP Networks Inc. And then I'll come back before opening it up to questions and answers.

And now let me hand the call over to Mike Bondi. Mike?

Executive
Michael Bondi

Thank you, Fred and good afternoon everybody. Our net sales for the first quarter of fiscal 2020 were $170.3 million. This is an increase from the $160.8 million of net sales reported in Q1 of fiscal 2019. From a geographic perspective, net sales in the first quarter of fiscal 2022 to US based customers were 76.9% of total net sales with 23.1% to international customers.

Bookings for the first quarter were solid