Key Points – Comtech said it will sell most of its Satellite and Space Communications business to Gilat for $157.5 million, using the proceeds mainly to reduce debt and sharpen its focus on public safety technology through Allerium. – The company posted Q3 net sales of $106…
llion, down from $126.8 million a year earlier, but gross margin improved to 34% as it phased out lower-margin business and streamlined operations. – Management said the turnaround is gaining traction, citing a fifth straight quarter of positive operating cash flow and about $50 million of available liquidity, while noting that Allerium revenue was broadly stable excluding a prior-year billing benefit. – Why Quantum Computing Inc. Is the Quiet Winner in Quantum Stocks Comtech Telecommunications (NASDAQ:CMTL) said its fiscal third-quarter results reflected continued progress in its turnaround plan, as the company announced an agreement to sell most of its Satellite and Space Communications business to Gilat for $157.5 million and refocus around its public safety technology business, Allerium
Chairman, President and CEO Ken Traub described the transaction as a “defining milestone” for the company and said it followed a broader strategic review process intended to strengthen Comtech’s balance sheet and sharpen its strategic focus. Traub said the company has been executing against a four-part transformation plan centered on operational discipline, positive operating cash flow, strategic alternatives and capital structure improvements. “Comtech is today a dramatically improved company,” Traub said, citing a streamlined cost structure and improved execution. He said the company reported its fifth consecutive quarter of positive operating cash flow and maintained approximately $50 million of available liquidity.
Comtech to Focus on Allerium After Satellite and Space Sale Traub said the sale of most of the Satellite and Space Communications segment would do more than generate cash and reduce debt. He…