Financial Data and Key Metrics Changes - Comtech reported net sales of $111 million for Q1 2026, a decrease from $130.4 million in the previous quarter but exceeding the midpoint of revenue guidance [13] - Gross profit for Q1 2026 was $36.8 million, representing a 153.3% increase from $14.5 million in Q1 2025, with a gross profit margin of 33.1% [14] - The company reported an operating loss of $2.8 million in Q1 2026, significantly improved from an operating loss of $129.2 million in Q1 2025 [15] - Adjusted EBITDA for Q1 2026 was $9.6 million, compared to an adjusted EBITDA loss of $30.8 million in Q1 2025 [16] - Operating cash flows were $8.1 million for Q1 2026, a substantial improvement from negative $21.8 million in Q1 2025 [17] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment reported a GAAP operating profit of over $3 million in Q1 2026, compared to a GAAP operating loss of approximately $119 million in the same period last year [8] - The Illyrium segment achieved adjusted EBITDA of $11.3 million, a slight increase from $11.0 million in the prior year [10] Market Data and Key Metrics Changes - The company secured approximately $27 million in initial funding toward a multi-year contract extension valued at over $130 million, which will contribute to future backlog [16] - Illyrium was awarded over $15 million in incremental multi-year funding for next-generation solutions development [12] Company Strategy and Development Direction - Comtech is focused on optimizing cash flow and has strategically phased out low-margin products to transition to higher-margin opportunities [25] - The company aims to capitalize on attractive growth opportunities in its business segments, particularly in satellite and space communications [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's revitalized financial health, which is expected to enhance employee retention, customer trust, and vendor relationships [21] - The company is at an inflection point, with improved margins and strategic growth opportunities ahead [25] Other Important Information - Mary Jane Raymond has joined the board of directors, bringing governance and operational expertise [22] Q&A Session Summary Question: Will the $130 million of new bookings flow to backlog in the current quarter? - A portion will be booked in the first quarter, but the majority will be booked in the second quarter [24] Question: What are the expectations for top-line growth given the transition to higher volume production? - The focus is on optimizing cash flow, with a belief that the company is at an inflection point for regrowth after phasing out low-margin business [25] Question: Any updates on the PIK preferred stock obligation? - No specific comments were made, but the company is exploring various options to improve its capital structure [27]

Financial Data and Key Metrics Changes - Comtech reported net sales of $111 million for Q1 2026, a decrease from $130.4 million in the previous quarter, but exceeding the midpoint of revenue guidance [13] - Gross profit for Q1 2026 was $36.8 million, representing a 153.3% increase from $14.5 million in Q1 2025, with a gross profit margin of 33.1% [15] - Operating loss narrowed to $2.8 million in Q1 2026 from a loss of $129.2 million in Q1 2025, with adjusted EBITDA of $9.6 million compared to a loss of $30.8 million in the prior year [16][17] - Operating cash flows improved to $8.1 million in Q1 2026 from negative $21.8 million in Q1 2025, marking the third consecutive quarter of positive cash flow [18] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment reported a GAAP operating profit of over $3 million in Q1 2026, a significant turnaround from a $119 million operating loss in the same period last year [8] - Illyrium segment achieved adjusted EBITDA of $11.3 million, a slight increase from $11.0 million in the prior year, despite lower net sales in Call Handling Solutions [10] Market Data and Key Metrics Changes - The first quarter's performance was impacted by earlier-than-anticipated orders and net sales, as well as delays due to the recent U.S. government shutdown [14] - Net bookings for Q1 2026 were $101.9 million, resulting in a book-to-bill ratio of 0.92, compared to 1.1 in the prior year [17] Company Strategy and Development Direction - The company is focused on optimizing cash flow and has phased out low-margin products to transition to higher-margin, strategic opportunities [25] - The successful transformation initiatives have positioned Comtech to capitalize on attractive opportunities in each business segment [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's revitalized financial health, which is expected to enhance employee retention, customer trust, and vendor relationships [21] - The company is at an inflection point, with improved margins and attractive growth opportunities ahead [25] Other Important Information - Mary Jane Raymond has joined the board of directors, bringing governance and operational expertise [22] Q&A Session Summary Question: Will the $130 million of new bookings flow to backlog in the current quarter? - A portion will be booked in Q1, but the majority will be booked in Q2 [24] Question: How should investors think about the return to top-line growth? - The focus is on optimizing cash flow, with a deliberate strategy to phase out low-margin business and focus on higher-margin opportunities [25] Question: Any updates on the PIK preferred stock obligation? - No specific comments were made, but the company is exploring various options to improve its capital structure [26]