Comtech reports Q2 EPS (15c), consensus 22c

Reports Q2 revenue $134.2M, consensus $152.9M. Interim CEO John Ratigan states: “As it relates to this quarter, I understand that foremost in most people’s minds is our refinancing. Please know that it is and will remain my single highest priority until it is complete. Throughout the quarter, the team has been working hard to strengthen our balance sheet. Here’s where we are right now: First, in January, two of our largest shareholders, White Hat Capital and Magnetar, made an additional $45 million strategic investment in Comtech. Both know the Company very well: following an initial investment of $100 million in October 2021, White Hat’s Co-Founder Mark Quinlan joined our Board of Directors and has since been active in helping promote and accelerate our One Comtech transformation – something he’s now doing as our newly appointed Board Chair. The continued support of Mark Quinlan, White Hat, and Magnetar – particularly given their deep understanding of our company, our markets, and our strategic vision – is not only appreciated, but also further validation of the underlying strength and long-term potential of our business. Second, we have been engaging with potential lenders to refinance our existing credit facility, and have advanced into what we believe are productive negotiations. We expect to replace our existing credit facility, and look forward to sharing more details once we have finalized our important work here. Our financial results this quarter in part reflect the temporary uncertainties created by the refinancing overhang. At the same time, they also reflect the ongoing benefits of implementing the One Comtech transformation that began 18 months ago.”