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KORE Group Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, highlighting a restatement due to an error in the calculation of goodwill impairment for the quarter ended June 30, 2024. The restatement increased the operating loss for that period by $17.7 million.
Total revenue for the third quarter was $68.9 million, compared to $68.6 million in the same quarter the previous year. Services revenue increased slightly, while product revenue decreased.
Cost of revenue for the quarter was $30.7 million, a decrease from $31.0 million in the previous year. This was due to a decrease in the cost of products.
Operating expenses for the quarter, excluding depreciation and amortization, were $43.8 million, down from $125.5 million in the previous year, primarily due to a decrease in goodwill impairment charges.
The company reported an operating loss of $5.6 million for the quarter, compared to $87.9 million in the previous year.
Net loss for the quarter was $19.4 million, compared to $95.4 million in the previous year. Basic and diluted loss per share was $1.00, compared to $5.50 in the previous year.
Cash provided by operating activities for the nine months ended September 30, 2024, was $7.1 million. Cash used in investing and financing activities was $12.2 million and $3.4 million, respectively.
KORE had a working capital of $19.0 million as of September 30, 2024. The company continues to focus on reducing costs and restructuring operations to improve financial performance.
The filing also details a restructuring plan announced on August 14, 2024, which affected approximately 240 employees and contractors, with charges of $2.0 million incurred during the third quarter.
The company identified a material weakness in its internal controls over financial reporting related to the calculation of goodwill impairment, which led to the restatement of financial statements for the second quarter of 2024.
KORE continues to provide IoT connectivity and solutions, with a focus on expanding its customer base and improving operational efficiencies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the KORE Group Holdings Inc. Warrants quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.