The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gregory Burns - Sidoti & Company - Analyst
: Good afternoon. Can you just talk about maybe the progress you're making in terms of cost optimization in the satellite business? How far along
are you in that process? Is it all reflected in this quarter's results? Or is there more to be gained in coming quarters?
Question: Gregory Burns - Sidoti & Company - Analyst
: Okay thanks and then maybe in terms of looking forward and targeting maybe some higher margin business. You announced that the $26 million
order with L3 for A3M modems. Can you just maybe talk about some of these higher margin programs that you've been doing development work
for over the last maybe a year or two that are now potentially going into production this year? What should we think of looking forward in terms
of opportunities for growth in some of these areas where you've been doing development work?
Question: Gregory Burns - Sidoti & Company - Analyst
: Okay, and then just lastly, on the cash flow and you're working through some of your own build receivables. What do you think -- or what is your
outlook for the cash flow in the second half of the year? Do you expect to be cash flow positive?
Question: Gregory Burns - Sidoti & Company - Analyst
: All right. Thank you.
Question: Griffin Boss - B. Riley Securities - Analyst
: Hi, good afternoon. Thanks for taking my questions. I'd like to drill down into some of the questions Greg just asked there with maybe a little bit
more pointed question. I'm curious just with the deliberate decision to not accept low margin, bookings or business, which I appreciate. Is there
any color you can provide in terms of what you believe could be a sustainable margin profile for space and satellite and T&W in general, not thinking
into specific programs on a go-forward basis, assuming this S&S gets back to normal operations post restructuring, that historically was maybe a
10% EBITDA business, T&W maybe 20% just generalizing? Perhaps any more color on kind of a go-forward basis with these new bookings profile
that you're targeting.
Question: Griffin Boss - B. Riley Securities - Analyst
: Okay, understood. So just shifting gear, related to the unfavorable ruling after what I believe was the fifth protest by the incumbent on GFSR. I
appreciate this news occurred today. But just curious, is there anything Comtech can do to re-protest this yourselves? And even if so, if there is
something you could do related to GFSR, is that something that you even want to spend time on at this time given the low margin profile of that
contract?
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MARCH 12, 2025 / 9:00PM, CMTL.OQ - Q2 2025 Comtech Telecommunications Corp Earnings Call
Question: Griffin Boss - B. Riley Securities - Analyst
: Okay, fair enough, thanks for that. And then maybe one more if I could just more broadly on TNW, maybe for Ken or for Jeff. Just curious if you had
any commentary around -- the FCC released their kind of meeting agenda for their meeting later in March. And it really highlighted their commitment
to ensure NG911 resilience and accessibility. Just curious if there was anything on that front that maybe you wanted to comment on? Or anything
in that that surprised you or improves your confidence in that part of the business going forward?
Question: Griffin Boss - B. Riley Securities - Analyst
: Great, thanks for that color, Jeff. And thanks everyone for taking my questions. Appreciate it.
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