Comtech CEO John Ratigan

In his first call as Comtech’s permanent CEO, John Ratigan said the company’s financial performance in the fourth quarter of fiscal year 2024 was below expectations. 

Ratigan spoke with investors on Thursday after being named permanent CEO on Oct. 30. Ratigan is a former iDirect Gov exec who had been serving as interim CEO since March when the company fired former CEO Ken Peterman. 

Comtech revenue dipped 1.7% in its fiscal year 2024, which ended on July 31, 2024. The company reported $540.4 million in sales. Net loss in 2024 was $100 million, compared to a net loss of $27 million in 2023. 

Revenue in Q4 was down 15% year-over-year, at $126 million. 

Ratigan told investors that Comtech’s balance sheet issues earlier in the year impacted manufacturing and deliveries and the company also saw cost growth on advanced engineering programs. In addition, there was a delay with a troposcatter foreign military sales order. 

However, the company logged strong order intake and ended the year with a record backlog of nearly $800 million.

“I’ll be blunt, our financial performance for the fourth quarter was below expectations,” Ratigan said. “Importantly, our results were not a function of missed or lost market opportunities. Comtech’s technologies, products and solutions continue to be in demand from our customers, validated by our record funded backlog of almost $800 million. This is critical and direct reflection from our customers that Comtech has a defensible, highly competitive position in the market.” 

Ratigan also addressed Comtech’s plan to sell off its 911 business to create a pure-play satellite technology company, saying it is the best way to “unlock the value of this business while simplifying our capital structure.” Discussions for the sale are ongoing. 

Ratigan’s letter to investors said that Comtech is one of the few U.S.-based providers with a large installed base of modems and high-power amplifiers. The company believes “these large and growing markets are at the beginning of technology upgrade cycles and modernization initiatives that will underpin demand for years to come.”