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Comtech Telecommunications Corp. (CMTL+0.55%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing reports a decrease in consolidated net sales to $126.6 million from $134.2 million in the same quarter the previous year, reflecting lower sales in both the Satellite and Space Communications and Terrestrial and Wireless Networks segments.
Gross profit for the quarter was $33.7 million, down from $43.2 million the previous year, with the gross margin decreasing to 26.7% from 32.2%. This decline was attributed to changes in product mix and lower sales.
Operating loss for the quarter was $10.3 million, compared to an operating income of $3.0 million in the prior year. The loss includes $5.0 million in amortization of intangibles and $3.4 million in restructuring costs.
Net loss attributable to common stockholders was $22.4 million, compared to $30.5 million in the previous year. The current quarter's loss included $26.4 million in adjustments to reflect the redemption value of convertible preferred stock.
Cash flows used in operating activities were $0.2 million for the quarter. Excluding restructuring costs and other one-time expenses, cash flows provided by operating activities would have been $5.4 million.
Comtech announced the launch of its new ELEVATE 2.0 multi-orbit SATCOM platform, designed to connect users with satellite communications across all orbits.
The company also reported a backlog of $763.8 million as of January 31, 2025, with a book-to-bill ratio of 0.63x for the quarter.
Comtech's management is focused on addressing liquidity challenges and has implemented a strategic transformation plan, including exploring strategic alternatives and reducing investments in working capital.
The company amended its credit facility and entered into a subordinated credit agreement to improve liquidity, but substantial doubt remains about its ability to continue as a going concern over the next year.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Comtech Telecommunications Corp. quarterly 10-Q report dated March 12, 2025. To report an error, please email earnings@qz.com.