Comtech Telecommunications Corp (NASDAQ:CMTL) shares are trading higher after the company reported third-quarter FY24 earnings and announced a fresh credit facility.
The company reported a third-quarter sales decline of 6.1% year-on-year to $128.08 million, missing the analyst consensus estimate of $136.42 million.
Segment Revenue: Total United States revenue was $105.7 million and that of International was $22.4 million.
The gross profit for the quarter decreased 9.7% to $38.9 million and the profit margin contracted 130 basis points to 30.4%.
The operating loss for the quarter narrowed to $3.47 million compared to a loss of $5.27 million. Adjusted EPS of $0.20 beat the analyst consensus estimate of $0.08.
Comtech held $27.2 million in cash and equivalents as of April 30,2024. Operating cash flow for nine months totaled $(44.99) million.
Comtech also announced that on June 17, 2024, the company entered into a $222.0 million credit facility with a new syndicate of lenders which is expected to be funded on or around June 18, 2024.
The new credit facility matures on July 31, 2028, consists of a committed $162.0 million term loan facility and $60.0 million revolver loan facility.
Price Action: CMTL shares are trading higher by 71.9% at $3.73 at last check Tuesday.
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