Telecom equipment maker, Comtech Telecommunications Corp posted a fourth-quarter profit that beat Wall Street expectations, helped by the acquisition of communication-equipment maker Radyne Corp.
The company said its telecommunications transmission and RF microwave amplifiers segments both benifited from the acquisition of the company in August 2008.
Fourth-quarter net income, however, fell to $6.2 million, or 21 cents per share, from $17 million, or 61 cents per share, a year earlier.
Revenue fell by about 4 percent to $122 million as sales of its mobile data communications equipment decreased due to a shift of revenue to fiscal 2010.
Excluding stock-based compensation expense, the company earned 26 cents a share.
Analysts expected earnings of 18 cents a share, excluding exceptional items, on revenue of $127.2 million, according to Reuters Estimates.
Backlog at the end of the quarter was $549.8 million, a near three-fold rise from a year earlier, but bookings for the period fell 43 percent to $80.8 million.
We believe that the fourth quarter may represent a bottoming out and that cost reductions implemented in fiscal 2009 will continue to benefit us as we focus on important commercial and U.S. government opportunities that we see ahead, Chief Executive Fred Kornberg said in a statement.
He also said the company had about $485.5 million in cash that could be used for acquisitions.
Shares of the Melville, New York-based Comtech were up about 4 percent at $34.45 in trading after the bell.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Anil D'Silva)