Ladies and gentlemen, thank you for standing by. Welcome to Comtech Telecommunication Corp.'s fourth quarter fiscal 2015 earnings conference call. At this time, all participants are in listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions]. As a reminder, this conference is being recorded today, Tuesday, September 29, 2015. I would now like to turn the conference over to Ms. Nancy Stallone, out of Comtech Telecommunications. Please go ahead, ma'am.

Thank you and good morning. Welcome to the Comtech Telecommunications Corp. conference call for the fourth quarter of fiscal year 2015. With us on the call this morning are Dr. Stanton D Sloane, President and Chief Executive Officer of Comtech; and Michael Porcelain, Senior Vice President and 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 certain 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 President and Chief Executive Officer of Comtech, Dr. Stanton Sloane. Stan?

Thanks, Nancy. Good morning, everyone. Thank you for joining us on the call. As announced yesterday afternoon, we reported our fourth quarter results of $77.5 million in revenue, GAAP diluted earnings per share of $0.34. For the year, our revenues totaled $307.3 million, and our GAAP diluted EPS was $1.42. Our adjusted EBITDA was $12 million for the fourth quarter and $51.8 million for the full fiscal year. Fiscal 2015 was a difficult year for Comtech. We started the year with expectations that we would achieve both top line and bottom line growth, but adverse global economic conditions have impeded that. As we discussed on prior conference calls, the drop in global oil prices significantly impacted the ability of our customers in the oil and gas producing regions of the world such as Russia and Brazil to invest in telecommunications products and infrastructure. At the same time, the U.S. dollar strengthened against many foreign currencies resulting in lower purchasing power from many of our international end-customers, because virtually all of our sales are denominated in U.S. dollars. During our fourth quarter China, which has historically been a relatively large region for our satellite earth station product line, announced a devaluation of its currency and many economists reduced their expectations for China's growth. As we look to fiscal 2016, we do not anticipate improving market conditions. As such, as announced in our press release yesterday, we believe that our consolidated net sales and operating income in fiscal 2016 will be similar to fiscal 2015. Specifically, we expect fiscal 2016 revenue will be in the range of $300 million to $310 million. Our GAAP diluted earnings per share is expected to be in the range of $1.34 to $1.50 and our adjusted EBITDA is expected to be in the range of $50 million to $54 million. Given market conditions, I am continuing to perform an assessment of our operations to determine if changes in our business approach or operations would help us serve our customers better and potentially reduce operating expenses. At the same time, we have embarked on a focused acquisition plan to expand our global footprint and further diversify our business. I will talk more about my assessment later in this conference call, but first let me turn it over to Mike Porcelain to provide an overview of our financial results and our 2016 business outlook. Mike?

Thanks, Stan and good morning, everyone. During Q4, we generated revenues of $77.5 million, of which 33.1% were for U.S. government end users, 51.5% were for international end users, with the remainder being for domestic commercial customers. For the full year fiscal 2015, we finished at $307.3 million of revenue with 30.6% being generated from U.S. government customers, 56.2% from international end users, with the remainder generated from domestic commercial customers. Net sales in our telecom transmission segment were $39.1 million in Q4 of fiscal 2015 as compared to the $59.3 million we achieved in Q4 of last year, representing a decrease of 34.1%. This decrease is attributable to lower net sales in both our satellite earth station and our over-the-horizon microwave system product lines. For the full year of fiscal 2015, net sales in our telecom transmission segment were $190 million, down $41.5 million or 17.9% from the $231.5 million we achieved in fiscal 2014. Sales in fiscal 2015 were impacted by reductions and delays in spending by many of our international customers. In our satellite earth station product line, although we did see some nominal improvement in bookings during Q4 2015 as compared to Q3 2015, our international customers continued to be impacted. Looking to fiscal 2016, we do not expect market conditions to mainly improve for these end customers. However, we are expecting overall annual satellite earth station product line sales to nominally increase in fiscal 2016 as compared to 2015. This will be driven by new product introductions which Stan will discuss. Sales for this product line are expected to be heavily weighted towards the fourth quarter of fiscal 2016. In our over-the-horizon microwave system product line, sales in Q4 of fiscal 2015 were significantly lower as compared to the level we achieved in Q4 of…

Thanks, Mike. Let me discuss recent developments in each of our three business segments. I will start with the largest segment, telecommunications transmission which is comprised of two product lines, satellite earth stations and over-the-horizon microwave systems. We remain the undisputed leader in the satellite earth station SCPC modem area, driven primarily by our proven ability to deliver the most bandwidth efficient modems and highest efficiency amplifiers to our end customers. I am enthusiastic about our new Heights solutions. It's a scalable network platform designed with a service provider in mind. Heights leverages a single user interface with a powerful traffic analytics engine that allow simplified design, implementation, monitoring, control and optimization of networks using our hubs and gateways. The Heights platform is designed to support the traffic loaded demanding premium enterprise users on traditional as well as HTS or high throughput satellites. Heights also supports dynamic remote to remote connections which eliminate double hop latency. Heights is a successor to our advanced VSAT product line and will take a little time to establish itself in the market. However, we continue to invest in enhancements, so that the platform can be used in markets that we have not historically participated in. To date, customer reaction to our Heights platform has been very positive. We are expecting Heights to contribute to sales in the second half of 2016. On the U.S. government side of our satellite earth station product line, we continue to perform work on our advanced time division multiple access interface processor or ATIP contract and anticipate sales in fiscal 2016 from additional shipments of ATIP production units to the U.S. Navy. In addition, we anticipate new development and production contracts to further improve the Navy's communications system performance. We are also pursuing similar programs with other U.S. military…

[Operator Instructions]. Our first question from Mark Jordan with Noble Financial. Please go ahead.

Good morning, gentlemen. Stan, I wondered if you could expand a little bit more on your international pipeline for Tropo in terms of numbers and how you think orders may flow this year and next? A related question, on the ones that you expect to potentially get in the current fiscal year, would those be your more traditional three-year programs where you would have a building of revenue into the middle time of three-year performance period or would these be more shorter-term equipment sales?

So on the first one, when we talk about international for Tropo, let me divide it. There is government or military type systems and then there is international applications, things like offshore oil platform communications and commercial opportunities. On the international side, there also are potential U.S. government, foreign military sales to international customers, and there are direct contracts that we anticipate with foreign customers. So it's all of those things. I think the way to summarize it is that we are continuing a couple of large international, direct international sales for systems that incorporate Tropo. They are not just Tropo boxes, if you will. They are larger systems, where we are actually going to integrate the Tropo into some other additional communications capabilities. Those are international. There are couple of foreign military sales opportunities in there that we are also looking at. On the commercial side, internationally, there are the classical or traditional customers like oil and gas provider. So those are all of the Tropo things. My current thinking is those are probably going to be second half of fiscal year signatures, if you will, on the contracts. That being the case, we would get some revenue from them in fiscal year, but your earlier point, your second question, most of those types of programs are not just a book and ship. They tend to involve longer timelines, two to three years is sort of what I would think of for a typical horizon for that sort of contract.

Okay. The BFT, you mentioned that there is opportunities and you are working on developing foreign military sales, export sales. Do you see that there will be any movement on a potential BFT-2.5 contract which would offer opportunity for the company in fiscal 2016? Or is that probably more than a year out?

So it's our understanding that the government awarded a BFT-2.5 contract. That's not an opportunity for us. We are thinking BFT-3.0. I think it's a next generation system where we are expending our energies. We are working with the Army and in fact we are looking at a couple of opportunities where the U.S. government has issued RFIs for second sources and other things related to BFT. So there is several things in the mix. We are working hard on the R&D front to position for what I will refer to as BFT-3 That's not a defined U.S. government program, but we expect that the government is going to need to replace the current generation, and so we are positioning for that replacement.

Okay. Final question for me, if I may. Your M&A plans -- you have talked about that you are looking at things. Are you looking for businesses that could fit and complement one of your four existing lines? Or are you looking for the potential to adding a new business line to the four that you have? Or a combination of both?

Well, we are not going to buy a running shoe company. We are going to stick to what I would call our core competency. I would describe that as communications systems and electronics generally, so if you want to think in terms of government terminology, I would call it the C4 space. And on the commercial side, communications systems, satcom, all those would be fair game. Objective is to not get too far outside of our comfort zone on what we know how do and we will add them in.

Okay. Thank you very much.

[Operator Instructions]. And it appears we have no further questions at this time. I will return the program to the company for any additional remarks.

No additional remarks from us. We appreciate your time and thank you for joining us. And with that, we will look forward to talking with you again in December in the next call.

This does conclude today's program. Thanks for your participation. You may now disconnect. Have a great day.