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What: Shares of Comtech Telecommunications (NASDAQ:CMTL) dropped by as much as 13% today, before recovering after reporting earnings.
So what: Revenue in the fiscal first quarter was $91 million, down from the $113.4 million top-line result a year ago. GAAP net income came in at $7.4 million, or $0.36 per share. Guidance was gloomy, as Comtech had to slash its full-year forecasts in both revenue and profit.
Now what: The drop in revenue was attributed to the expectedly lower sales in the company's mobile data communications segment. Fiscal 2013 sales should now be in the range of $350 million to $365 million, down from the previous range of $375 million to $395 million. Earnings per share were also toned down to a new forecast between $1.26 and $1.34. CEO Fred Kornberg said the ominous "fiscal cliff" has been rattling its customer base and adding uncertainty.
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