Comtech Telecommunications(CMTL) - 2025 Q2 - Quarterly Results

Financial Performance - Consolidated net sales were $126.6 million in Q2 FY2025, a decrease of 5.7$10.3 million, significantly improved from a loss of $129.2 million in the prior quarter[12]. - Net loss was$48.7 million, compared to a net loss of $10.6 million in the prior year period, but improved from a net loss of$148.4 million in the previous quarter[13]. - Adjusted EBITDA was $2.9 million, down from$15.1 million in the prior year period but improved from a loss of $19.4 million in the previous quarter[14]. - Consolidated net bookings were$79.4 million, a decrease of 44.0% year-over-year and 37.9% sequentially, with a book-to-bill ratio of 0.63x[15]. - The net loss attributable to common stockholders for the three months ended January 31, 2025, was $22.4 million, compared to a loss of$30.5 million in the same period last year[35]. - Net loss for the three months ended January 31, 2025, was $48,739,000, compared to a net loss of$10,558,000 for the same period in 2024, indicating a deterioration in performance[39]. - Adjusted EBITDA for the three months ended January 31, 2025, was $2,903,000, down from$15,111,000 in the same period of 2024, reflecting a decrease of approximately 80.8%[39]. - The six months ended January 31, 2025, showed a net loss of $139.43 million, translating to a diluted loss per share of$6.06[41]. Capital Structure and Liquidity - The company received a $40.0 million capital infusion in subordinated debt to improve its capital structure and financial flexibility[7]. - Qualified cash and cash equivalents were$26.3 million as of January 31, 2025, compared to $21.5 million in the previous year[31]. - Total outstanding borrowings under the Credit Facility increased to$202.9 million from $168.0 million, with$32.5 million drawn on the Revolver Loan[31]. - The company amended its Credit Facility to reduce the minimum quarterly Average Liquidity requirement from $20.0 million to$17.5 million[28]. - Available sources of liquidity as of March 10, 2025, approximated $27.4 million[31]. Operational Adjustments - The company is conducting a comprehensive review of strategic alternatives with financial advisors to enhance operational discipline and reduce costs[7]. - The company has reduced its global workforce by approximately 13$26.0 million in annualized labor cost savings[27]. - The company plans to pursue contracts for niche products and solutions with higher margins in its Satellite and Space Communications segment[32]. - The company incurred restructuring costs of $3,400,000 in Q1 2025, compared to$2,726,000 in Q1 2024, reflecting ongoing operational adjustments[39]. Asset and Equity Changes - Total assets decreased from $912,434,000 on July 31, 2024, to$770,561,000 on January 31, 2025, representing a decline of approximately 15.5%[37]. - Total stockholders' equity fell from $306,253,000 to$128,708,000, a decline of approximately 58.0%[37]. - Goodwill decreased from $284,180,000 on July 31, 2024, to$204,625,000 on January 31, 2025, a reduction of about 28.0%[37]. - Current liabilities increased significantly from $183,547,000 to$385,309,000, marking an increase of about 109.5%[37]. Expenses and Interest - Total expenses for selling, general and administrative increased to $85.5 million for the six months ended January 31, 2025, from$63.0 million in the previous year[35]. - The company reported a significant increase in interest expense, which rose to $20.5 million for the six months ended January 31, 2025, compared to$10.2 million in the prior year[35]. - The company reported a significant increase in interest expense, rising from $5,265,000 in Q1 2024 to$11,008,000 in Q1 2025[39]. Impairments and Gains - The company recognized impairment of long-lived assets, including goodwill, amounting to $79.56 million for the six months ended January 31, 2025[41]. - The change in fair value of warrants and derivatives resulted in a gain of$28,568,000 for the three months ended January 31, 2025, compared to no gain in the same period of 2024[39]. - The company reported a gain on the change in fair value of warrants and derivatives of $28.57 million for the three months ended January 31, 2025[41]. Non-GAAP Measures - Non-GAAP measures for the three months ended January 31, 2025, indicated a net loss of$10.28 million, with a diluted loss per share of $0.35[41]. - Non-GAAP measures for the fiscal year 2024 showed a net income of$33.54 million, with a diluted earnings per share of $0.10[42].