Public safety tech firm Comtech posts lower-than-expected Q4 sales
CMTL•Comtech’s fourth-quarter net sales fell 12% year over year to $66.23 million, below the $111.65 million consensus estimate, and it reported a $3.9 million operating loss from continuing operations. The company also agreed to sell most of its Satellite and Space business for $157.5 million in cash.
1. Quarterly results
Comtech reported fourth-quarter net sales of $66.23 million, down 12% year over year and below the $111.65 million consensus estimate. It posted a $3.9 million operating loss from continuing operations and a loss per share of $0.49.
2. Satellite and Space sale
Comtech agreed to sell most of its Satellite and Space business for $157.5 million in cash and expects the deal to close in calendar 2026. The company anticipates $13 million to $15 million in transition costs over fiscal 2027-2028 and expects annual cost savings of $16 million to $18 million after the sale and transition.
3. Sales and margins
Comtech attributed higher gross margin to continued adoption of its solutions and migration of public safety answering points onto NG9-1-1 core services and call handling platforms. Higher sales of cybersecurity training services partly offset declines in location-based and call handling solutions.
