Comtech Telecommunications Corp. reported Unaudited consolidated earnings results for the third quarter and nine months ended April 30, 2016. For the quarter, the company's net sales were $124,187,000 compared to $71,633,000 for the three months ended April 30, 2015. Operating net loss was $13,397,000 compared to operating income of $7,160,000 a year ago. GAAP net loss was $14,355,000, or $0.89 per diluted share as compared to GAAP net income of $4,960,000, or $0.30 per diluted share, for the three months ended April 30, 2015. Adjusted EBITDA was $12,462,000 as compared to $11,631,000 a year ago. Loss before provision for income taxes was $16,865,000 against income before provision for income taxes of $7,195,000 a year ago.

For the nine months, the company's net sales were $258,627,000 compared to $229,826,000 for the nine months ended April 30, 2015. The increase in net sales for quarter and nine months reflects incremental sales of approximately $66.0 million as a result of the acquisition of TeleCommunication Systems Inc., partially offset by lower sales of legacy Comtech products. Operating net loss was $8,040,000 against operating income of $26,002,000 a year ago. GAAP net loss was $10,440,000, or $0.65 per diluted share, as compared to GAAP net income of $17,770,000, or $1.08 per diluted share, for the nine months ended April 30, 2015. Adjusted EBITDA was $29,241,000 as compared to $39,807,000 a year ago. Loss before provision for income taxes was $11,434,000 against income before provision for income taxes of $25,877,000 a year ago.

The company announced that it is updating its fiscal 2016 revenue guidance to a new range of $425.0 million to $435.0 million and that it expects GAAP diluted EPS for fiscal 2016 will range from a loss of $0.90 to a loss of $0.81. The company is also updating its fiscal 2016 Adjusted EBITDA guidance to a new range of $44.0 million to $46.0 million. The company also indicated that it has begun its annual planning process and is targeting fiscal 2017 adjusted EBITDA to range from $70.0 million to $80.0 million. The company's effective tax rate for fiscal 2016 will be impacted by various items including the non-deductibility of transaction related expenses incurred in connection with the TCS acquisition.

The company currently expects that its fiscal 2017 effective tax rate, excluding discrete items will approximate 37.5%.