Comtech Telecommunications(US:CMTL)2025-11-10 21:29Financial Performance - Fiscal 2025 net sales were $499.5 million, a 7.6% decline from $540.4 million in fiscal 2024[8]. - Net loss attributable to common shareholders for fiscal 2025 was $204.3 million, compared to $135.4 million in fiscal 2024[11]. - Adjusted EBITDA for fiscal 2025 was a loss of $2 million, an improvement from positive $45.7 million in fiscal 2024[12]. - S&S segment net sales were $269.3 million for fiscal 2025, down from $324.1 million in fiscal 2024[28]. - Allerium net sales for fiscal 2025 were $230.3 million, up 6.5% from $216.3 million in fiscal 2024[41]. - The net loss attributable to common stockholders for the twelve months ended July 31, 2025, was $204.25 million, compared to a loss of $135.44 million in 2024[71]. - The company reported a non-GAAP net loss of $(70.758) million for the twelve months ended July 31, 2025, with a non-GAAP net loss per diluted common share of $(2.41)[79]. Cash Flow and Liquidity - Operating cash flow for Q4 2025 was $11.4 million, marking the first quarters of positive operating cash flow since fiscal 2023[3]. - Liquidity improved by 71.5% to $47 million as of July 31, 2025, compared to $27.4 million in March 2025[18]. - Operating cash flow is expected to be between $6 million and $7 million, a significant improvement compared to cash flow used in operating activities of $21.8 million in Q1 fiscal 2025[66]. - Cash flows from operating activities improved significantly, with a net cash provided of $11,447,000 for the three months ended July 31, 2025, compared to a net cash used of $9,497,000 in the prior year[75]. - Liquidity as of October 31, 2025, is reported at $51.0 million, which includes qualified cash and cash equivalents along with the available portion of the revolver loan[66]. Profitability Metrics - Gross margin for Q4 2025 was 31.2%, up from 21.5% in Q4 2024, reflecting a 50.2% increase in gross profit[20]. - S&S operating loss was $111.6 million in fiscal 2025, significantly impacted by a $79.6 million non-cash goodwill impairment charge[29]. - S&S Adjusted EBITDA was a loss of $15.8 million in fiscal 2025, compared to positive $29.8 million in fiscal 2024[30]. - Allerium operating income increased to $24.1 million in fiscal 2025, an 11.1% increase from $21.7 million in fiscal 2024[42]. - Allerium Adjusted EBITDA was $47.6 million in fiscal 2025, compared to $44.7 million in fiscal 2024[43]. Operational Highlights - Funded backlog at year-end was $672.1 million, down from $798.9 million the previous year[16]. - A multi-year contract extension valued at over $130.0 million was secured from a major U.S. telecommunications customer in November 2025[50]. - The company expects annualized cost savings of approximately $3.0 million from migrating production capabilities to Chandler, Arizona, by fiscal 2026[36]. - The company anticipates improved performance in subsequent quarters of fiscal 2026, despite potential impacts from the recent U.S. government shutdown[62]. Asset and Liability Management - Total assets decreased from $912,434,000 in July 31, 2024 to $740,835,000 in July 31, 2025, a decline of approximately 18.8%[73]. - Current assets fell from $336,551,000 in July 31, 2024 to $270,186,000 in July 31, 2025, representing a decrease of about 19.7%[73]. - Total liabilities increased from $426,105,000 in July 31, 2024 to $446,868,000 in July 31, 2025, an increase of approximately 4.9%[73]. - The total stockholders' equity decreased from $306,253,000 in July 31, 2024 to $104,422,000 in July 31, 2025, a decline of about 65.9%[73]. Impairments and Restructuring - The company recorded an impairment of long-lived assets, including goodwill, amounting to $64,525,000 for the twelve months ended July 31, 2025[75]. - The impairment of long-lived assets, including goodwill, was $79.555 million for the twelve months ended July 31, 2025, compared to $64.525 million in the previous year[77]. - The company incurred restructuring costs of $15.585 million for the twelve months ended July 31, 2025, up from $12.470 million in the previous year[77]. Strategic Focus - The company is focusing on strategic alternatives and operational initiatives to improve future performance and financial condition, although risks and uncertainties remain[67]. - The company did not provide future Non-GAAP financial guidance or targets, indicating uncertainty in predicting specific financial metrics[76].