Mon, Jun 9, 8:21 PM (34 days ago)
**Summary of Comtech Telecommunications Corp. (CMTL) Q3 2025 Financial Performance** **Quarterly Financial Health:** - **Revenue:** $126.8 million, a slight decrease of 1.0% from Q3 2024. - **Gross Profit:** $38.9 million, with a gross margin of 30.7%. - **Operating Loss:** $1.5 million, reflecting higher amortization of intangibles, restructuring costs, and stock-based compensation. - **Net Loss:** $14.5 million, including dividends related to convertible preferred stock. - **Adjusted EBITDA:** $12.6 million, or 9.9% of consolidated net sales. **Profit Margins:** - **Gross Margin:** 30.7%. - **Operating Margin:** -1.2%. - **Net Margin:** -11.4%. **Cash Flow:** - **Operating Cash Flow:** $2.3 million. - **Investing Cash Flow:** -$6.5 million, primarily due to capital expenditures. - **Financing Cash Flow:** $22.3 million, including proceeds from the Amended Subordinated Credit Facility. **Earnings Changes:** - **EPS:** -$0.49, reflecting the net loss attributable to common stockholders. - **Non-GAAP EPS:** -$0.18, excluding certain non-recurring items. **Quarterly Performance Discussion:** - **Revenue Trends:** Decrease in Satellite and Space Communications segment offset by higher sales in Terrestrial and Wireless Networks segment. - **Operational Challenges:** Higher costs related to amortization, restructuring, and stock-based compensation. - **Strategic Initiatives:** Continued focus on transformation strategy, including portfolio-shaping and operational initiatives. **Trends:** - **Revenue Visibility:** Approximately $1.2 billion, including funded backlog and unfunded value of multi-year contracts. - **Backlog:** $708.1 million as of April 30, 2025, compared to $798.9 million as of July 31, 2024. **Uncertainties:** - **Liquidity Concerns:** Potential non-compliance with financial covenants under the Credit Facility and Amended Subordinated Credit Facility. - **Operational Risks:** Supply chain disruptions, component availability, and quality issues. - **Market Conditions:** Unpredictable funding, deployment, and technology decisions by customers. **Future Operations Impact:** - **Strategic Alternatives:** Exploration of strategic alternatives for businesses and product lines. - **Financial Flexibility:** Enhanced through recent amendments to the Credit Facility and Amended Subordinated Credit Facility. - **Operational Initiatives:** Focus on reducing cost structure, improving liquidity, and pursuing further financing activities.