Communications equipment maker Comtech Telecommunications Corp. said Tuesday that its first-quarter profit fell by more than half as revenue dropped sharply. However, the results were better than analysts expected, and its shares rose in late trading.
The company said it earned $9 million, or 30 cents per share, during the quarter that ended Oct. 31. That was down from a profit of $21.6 million, or 80 cents per share, during the same period last year.
Sales fell by almost one-third to $133.8 million from $191.9 million a year ago.
Analysts surveyed by Thomson Reuters were expecting a profit of 22 cents per share on revenue of $125.5 million.
Comtech said it began recording "significant revenue" from its mobile data communications segment during the quarter as it shipped rugged computers and accessories to fill orders from the U.S. Army. It said it expects those orders to continue throughout the fiscal year, with revenue increasing in each quarter going forward.
Comtech shares rose 18 cents to close at $30.46 before the results were released. They jumped another $1.54, or 5.1 percent, to $32 in late trading.