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Comtech Telecommunications(CMTL) - 2025 Q1 - Quarterly Results
CMTLComtech Telecommunications(CMTL)2025-01-13 12:10

Financial Performance - Consolidated net sales were 115.8million,adeclineof23.8115.8 million, a decline of 23.8% compared to the prior year period[7] - Net bookings were 127.9 million, down 31.1% year-over-year, with a book-to-bill ratio of 1.10x[8] - Operating loss was 129.2million,comparedtooperatingincomeof129.2 million, compared to operating income of 2.1 million in the prior year[11] - Net loss for the quarter was 148.4million,comparedtoanetlossof148.4 million, compared to a net loss of 1.4 million in the prior year[11] - Gross profit for the same period was 14.5million,down69.714.5 million, down 69.7% from 47.9 million year-over-year[36] - Net loss attributable to common stockholders was 155.9million,significantlyhigherthanthe155.9 million, significantly higher than the 3.3 million loss reported in the previous year[36] - The company reported a basic and diluted net loss per common share of 5.29,comparedto5.29, compared to 0.11 in the same quarter of the previous year[36] - The company’s GAAP net loss attributable to common stockholders for the fiscal year 2024 was 79.89million,withalossperdilutedshareof79.89 million, with a loss per diluted share of 4.70[42] - Non-GAAP net loss for the fiscal year 2024 was 33.54million,translatingtoanon−GAAPearningspershareof33.54 million, translating to a non-GAAP earnings per share of 0.10[42] Segment Performance - The Satellite & Space Communications segment reported net sales of 58.9million,adecreaseof42.558.9 million, a decrease of 42.5% year-over-year[14] - The Terrestrial & Wireless Networks segment achieved net sales of 56.9 million, an increase of 14.9% compared to the prior year[20] Backlog and Revenue Visibility - Funded backlog increased to 811.0million,withrevenuevisibilityofapproximately811.0 million, with revenue visibility of approximately 1.6 billion[13] Asset and Liability Changes - Total current assets decreased to 306.6millionfrom306.6 million from 336.6 million as of July 31, 2024[38] - Total liabilities increased to 494.1millionfrom494.1 million from 426.1 million in the previous quarter[38] - Goodwill decreased to 204.6millionfrom204.6 million from 284.2 million, reflecting impairment of long-lived assets[38] - The company incurred 79.6millioninimpairmentoflong−livedassets,includinggoodwill,duringthequarter[36]AdjustedEBITDAandStrategicReview−AdjustedEBITDAisnotprovidedforfuturefinancialtargets,indicatingpotentialvolatilityinfinancialresultsduetovariousfactors[39]−AdjustedEBITDAforthequarterwasalossof79.6 million in impairment of long-lived assets, including goodwill, during the quarter[36] Adjusted EBITDA and Strategic Review - Adjusted EBITDA is not provided for future financial targets, indicating potential volatility in financial results due to various factors[39] - Adjusted EBITDA for the quarter was a loss of 19.40 million, a significant decline from an adjusted EBITDA of 18.37millionintheprioryear[40]−Thecompanyisconductingacomprehensivereviewofstrategicalternatives,includingcapital−raisingandde−leveringopportunities[29]CostsandAmortization−Restructuringcostsincreasedto18.37 million in the prior year[40] - The company is conducting a comprehensive review of strategic alternatives, including capital-raising and de-levering opportunities[29] Costs and Amortization - Restructuring costs increased to 17.85 million in Q4 2024, compared to 3.72millioninthesamequarterofthepreviousyear[40]−Theamortizationofintangiblesforthefiscalyear2024was3.72 million in the same quarter of the previous year[40] - The amortization of intangibles for the fiscal year 2024 was 21.15 million, compared to 16.39millioninthepreviousfiscalyear[42]−Thecompanyhasincurredstrategicemergingtechnologycostsof16.39 million in the previous fiscal year[42] - The company has incurred strategic emerging technology costs of 280,000 in Q4 2024, down from 1.37millioninQ42023[40]CashPosition−Cashandcashequivalentswereapproximately1.37 million in Q4 2023[40] Cash Position - Cash and cash equivalents were approximately 30 million as of October 31, 2024[26] Fair Value Changes - The company reported a change in the fair value of warrants and derivatives amounting to $5.52 million in Q4 2024, contributing positively to the adjusted earnings[42] Tax Rate Evaluation - The company is actively evaluating its non-GAAP effective income tax rate, which may differ materially from the GAAP effective income tax rate[41]