Comtech Telecomm. Corp. (NASDAQ: CMTL) stock rose 0.27% after the company in the fourth quarter of FY 19 has reported the bookings of $112.2 million and for the full year, CMTL had achieved bookings of approximately $724.1 million. The company had reported the adjusted revenue growth of 5.4 percent to $176.4 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $164.8 million. Comtech has finished FY 19 with backlog of $683 million. When adding Comtech’s backlog and the total unfunded value of multi-year contracts that Comtech has actually received and for which it expects future orders, its revenue visibility approximates $1 billion
For fiscal 2020, the company expects net sales to be in a range of approximately $710.0 million to $730.0 million with year-over-year growth in both Comtech’s Commercial Solutions and Government Solutions segments and the achievement of a consolidated book-to-bill ratio in excess of 1.0. Total depreciation expense is projected to approximate $13 million, total amortization of intangible assets is projected to approximate $21 million and total amortization of stock-based compensation expense is projected to range from approximately $12 million to $14 million for fiscal 2020. The company expects GAAP operating income, as a percentage of net sales, to approximate 7% as compared to the 6.2% Comtech achieved in fiscal 2019. Comtech’s interest expense rate (including amortization of deferred financing costs) is projected to approximate 4.6% with total interest expense of about $7.5 million in fiscal 2020. Comtech’s current cash borrowing rate is about 4%. Comtech’s effective income tax rate (excluding discrete tax items) is projected to approximate 23%. Adjusted EBITDA is projected to be in a range of approximately $98.0 million to $102.0 million or approximately 14%. Including Comtech’s estimates of first quarter fiscal 2020 acquisition plan expenses of $1.5 million, GAAP EPS is projected to range from $1.30 to $1.45. Excluding first quarter fiscal 2020 acquisition plan expenses, Non-GAAP EPS is projected to be in the range of $1.35 to $1.50.
In addition, the financial performance in the second half of fiscal 2020 is expected to be higher than the first half, and the first quarter of fiscal 2020 is the lowest in terms of consolidated net sales and Adjusted EBITDA. Comtech’s GAAP operating income in the first quarter of fiscal 2020 is anticipated to be lower than the $7.3 million the company had posted during its first quarter in fiscal 2019, mainly due to incremental amortization of intangible assets associated with its fiscal 2019 acquisitions.