Comtech Telecommunications Corp.

Ladies and gentlemen, thank you for standing by. Welcome to ComTech Telecommunications Core Fourth Quarter Fiscal 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. At that time, if you have a question, you will need to press the star and 1 on your push-button phone. As a reminder, this conference is being recorded Tuesday, September 29, 2020. I would now like to turn the conference over to Mr. Jason DiLorenzo of ComTech Telecommunications. Please go ahead, sir.

Thank you, and good afternoon. Welcome to the ComTech Telecommunications Corp Q4 and year-end conference call for fiscal year 2020. With us on the call are Fred Kornberg, Chairman of the Board and Chief Executive Officer of ComTech, Michael D. Porcelain, President and Chief Operating Officer, and Michael Bondi, Chief Financial Officer. Before we proceed, I need to remind you of the company's safe harbor language. Certain information presented in this call will include, but not be limited to, information relating to the future performance and financial condition of the company, the company's plans, objectives, and business outlook, and the plans, objectives, and business outlook of the company's management. The company's assumptions regarding such performance, business outlook, and plans are forward-looking in nature and involve significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Any forward-looking statements are qualified in their entirety by cautionary statements contained in the company's Securities and Exchange Commission filings. I am pleased now to introduce the Chief Executive Officer of ComTech, Fred Kornberg. Fred?

Thank you, Jason, and good afternoon, everyone, and thank you for joining us on this call. Today, we will be discussing the results for our fourth quarter of fiscal 2020 and our outlook for fiscal 2021. We hope our employees, suppliers, customers, partners, and investors remain healthy and safe as we continue to navigate in this COVID-19 environment. As you can see from our announcement this afternoon, our fourth quarter performance reflected a strong finish to what was a challenging year resulting from the COVID-19 pandemic. Our fourth quarter sales were $149.7 million, with an adjusted EBITDA of $23.5 million. In the fourth quarter, we generated a book-to-bill ratio of 1.07, and our pipeline remains strong with a number of large opportunities that we are optimistic about. For the year, we achieved a net sales of $616.7 million and an adjusted EBITDA of $77.8 million. We finished the year with a healthy business and a solid backlog. Our prudent financial management in these turbulent times has enabled us to generate $52.8 million of operating cash flows and the flexibility to continue to invest in our business. I firmly believe that we remain on the course of delivering long-term growth and driving shareholder value. Now that things have somewhat stabilized, although things are still fluid, we are reinstating guidance, and our initial thinking is that we can do better in fiscal 2021 than we did in 2020. That said, we're targeting to achieve fiscal 2021 revenues of approximately $610 million to $630 million with an adjusted EBITDA in the range of $74 million to $78 million. I believe that as the year progresses and new orders come in, I remain optimistic that actual 2021 results will exceed our targets. Before further discussing our financial results and business in more detail, I would like to say a few words about the status of the Gilad acquisition. As a reminder, in January 2020, we announced the highly strategic acquisition of Gilad, a worldwide leader in satellite networking technology solutions and services. Unfortunately, after we announced the Gilad acquisition, the COVID-19 pandemic resulted in a sudden and steep decline in the travel and aviation markets, where Gilad's operation is, and a significant slowdown in Gilad's business. As publicly reported, Gilad has suffered lower period over period sales and a negative adjusted EBITDA for the first six months of the calendar year 2020. Given everything, in July 2020, we commenced litigation in the Delaware court of Chancery seeking certain declaratory judgments, including a declaratory judgment that Gilad has suffered a material adverse effect, and that as a result of the material adverse effect, we are not obligated to complete the acquisition. Currently, a trial is scheduled for October 5, 2020, and the Delaware Court has indicated that it intends to render a judgment prior to October 2020, the date that we or Gilad may terminate the merger agreement. Because this matter is getting ready for trial, I must tell you, and I'm sure you will understand, that we will not make any further comments on the Gilad acquisition or take any questions related to Gilad or the related litigation. Now, let me turn it over to Michael Bondi, who will provide additional commentary about our financials and then to Michael Porcelain, who will provide an update on our business and our pending acquisitions. Mike?