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Comtech Telecommunications(CMTL) - 2025 Q3 - Quarterly Results
CMTLComtech Telecommunications(CMTL)2025-06-09 20:24

Financial Performance - Consolidated net sales were 126.8millioninQ3FY2025,adecreaseof1.0126.8 million in Q3 FY2025, a decrease of 1.0% year-over-year and an increase of 0.2% sequentially[6]. - Consolidated gross profit was 38.9 million, representing a gross margin of 30.7%, up from 26.7% in the previous quarter[7]. - Consolidated net loss attributable to common shareholders was 14.5million,comparedtoanetlossof14.5 million, compared to a net loss of 1.0 million in the prior year period[10]. - Consolidated Adjusted EBITDA was 12.6million,anincreasefrom12.6 million, an increase from 11.9 million in the prior year period and 2.9millioninthepreviousquarter[11].−Consolidatednetbookingswere2.9 million in the previous quarter[11]. - Consolidated net bookings were 71.0 million, a decrease of 30.2% year-over-year, with a book-to-bill ratio of 0.56x[12]. - The company reported a net loss of 163.2millionfortheninemonthsendedApril30,2025,comparedtoanetlossof163.2 million for the nine months ended April 30, 2025, compared to a net loss of 9.2 million in the same period of 2024[41]. - The net loss per common share for the nine months ended April 30, 2025, was 6.56,comparedtoalossof6.56, compared to a loss of 1.21 in the same period of 2024[41]. - For the three months ended April 30, 2025, the company reported a net loss of 1,532,000,translatingtoalossperdilutedshareof1,532,000, translating to a loss per diluted share of (0.49) compared to a net loss of 3,470,000andalossperdilutedshareof3,470,000 and a loss per diluted share of (0.04) for the same period in 2024[47]. - The non-GAAP net loss for the three months ended April 30, 2025, was 5,238,000,resultinginanon−GAAPlossperdilutedshareof5,238,000, resulting in a non-GAAP loss per diluted share of (0.18), while the non-GAAP net income for the same period in 2024 was 8,790,000withanon−GAAPincomeperdilutedshareof8,790,000 with a non-GAAP income per diluted share of 0.20[47]. Revenue and Sales Segments - The Terrestrial and Wireless Networks segment reported net sales of 59.2million,anincreaseof4.659.2 million, an increase of 4.6% year-over-year, driven by NG-911 services[22]. - The Satellite and Space Communications segment's net sales were 67.6 million, a decrease of 5.3% year-over-year, impacted by lower sales to the U.S. Marine Corps and U.S. Army[15]. - A new contract valued at over 27.0millionforstatewideNG−911serviceshasbeensecuredforaSoutheasternstate[32].−Variousfundedorderstotaling27.0 million for statewide NG-911 services has been secured for a Southeastern state[32]. - Various funded orders totaling 9.0 million for wireless location-based messaging services were received[32]. - Incremental funding of over 2.5millionwassecuredfromanewinternationalcustomerforlocation−basedmessagingservices[32].CostandExpenses−Selling,generalandadministrativeexpensesincreasedto2.5 million was secured from a new international customer for location-based messaging services[32]. Cost and Expenses - Selling, general and administrative expenses increased to 115.7 million for the nine months ended April 30, 2025, compared to 91.7millionin2024,reflectinga26.291.7 million in 2024, reflecting a 26.2% rise[41]. - The company incurred restructuring costs of 14,222,000 for the nine months ended April 30, 2025, compared to 9,197,000forthesameperiodin2024[45].−Thecompanyrecognizedrestructuringcostsof9,197,000 for the same period in 2024[45]. - The company recognized restructuring costs of 12,470,000 for the fiscal year 2024, contributing to the overall net loss[48]. - The company incurred CEO transition costs of 2,916,000duringthefiscalyear2024,whichwerepartoftheoveralloperationalexpenses[48].BalanceSheetandAssets−Totalassetsdecreasedfrom2,916,000 during the fiscal year 2024, which were part of the overall operational expenses[48]. Balance Sheet and Assets - Total assets decreased from 912,434,000 on July 31, 2024, to 751,144,000onApril30,2025,representingadeclineofapproximately17.7751,144,000 on April 30, 2025, representing a decline of approximately 17.7%[43]. - Current liabilities increased significantly from 183,547,000 to 372,683,000,markinganincreaseofabout103372,683,000, marking an increase of about 103%[43]. - Goodwill decreased from 284,180,000 on July 31, 2024, to 204,625,000onApril30,2025,areductionofapproximately28204,625,000 on April 30, 2025, a reduction of approximately 28%[43]. - Total stockholders' equity fell from 306,253,000 to 115,433,000,adecreaseofabout62.3115,433,000, a decrease of about 62.3%[43]. - The current portion of credit facility increased dramatically from 4,050,000 to 148,882,000,reflectingariseofapproximately3,577148,882,000, reflecting a rise of approximately 3,577%[43]. Future Outlook and Guidance - The company has not provided future financial targets, making it difficult to reconcile business outlook to GAAP measures[44]. - The company will host a conference call with investors and analysts on June 9, 2025[34]. Impairments and Adjustments - The company experienced a significant impairment of long-lived assets, including goodwill, amounting to 79,555,000 for the nine months ended April 30, 2025[47]. - The total net discrete tax expense for the fiscal year 2024 was 4,136,000,impactingtheoverallfinancialresults[48].−Theadjustmentstoreflecttheredemptionvalueofconvertiblepreferredstockcontributed4,136,000, impacting the overall financial results[48]. - The adjustments to reflect the redemption value of convertible preferred stock contributed 15,900,000 to the fiscal year 2024 results, equating to 0.55perdilutedshare[48].−Thecompanyreportedachangeinthefairvalueofwarrantsandderivatives,resultinginalossof0.55 per diluted share[48]. - The company reported a change in the fair value of warrants and derivatives, resulting in a loss of 4,273,000 for the fiscal year 2024[48].