Tue, Nov 19, 10:14 PM (121 days ago)
KORE Group Holdings, Inc. (NYSE: KORE) reported its financial results for the quarter ended September 30, 2024, reflecting ongoing challenges and adjustments following a goodwill impairment restatement. The company reported total revenue of $68,920,000, a slight increase from $68,633,000 in the same period last year, driven by a 2% growth in service revenue, primarily from new customer business and increased connectivity utilization. However, product revenue declined by 8%, attributed to a strategic shift away from less profitable hardware contracts. The operating loss for the quarter was $5,626,000, significantly improved from a loss of $87,853,000 in Q3 2023 due to substantial goodwill impairment charges last year. The company recognized an operating expense of $43,827,000, down from $125,490,000, reflecting cost-cutting efforts amid restructuring initiatives. Cash flow from operations improved to $7,066,000, while free cash flow remained negative at $(5,111,000). The company’s liquidity is constrained, with $18,607,000 in cash and significant preferred stock dividend arrears totaling approximately $18.2 million. Future operations may be impacted by ongoing macroeconomic uncertainties and competitive pressures in the IoT market.