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CHANDLER, Ariz. - Comtech Telecommunications Corp. (NASDAQ:CMTL) saw its shares tumble 16.9% after reporting second quarter earnings that fell short of analyst expectations, despite beating on revenue.
The communications technology company posted an adjusted loss of $0.76 per share for Q2, missing the analyst estimate of a $0.58 per share loss by $0.18. Revenue came in at $126.57 million, surpassing the consensus forecast of $118.75 million and rising 9.3% sequentially from the previous quarter.
Comtech’s Q2 revenue declined 5.7% YoY, while its net loss widened to $48.7 million compared to a $10.6 million loss in the same period last year. The company reported an operating loss of $10.3 million for the quarter.
"We are making strong progress in the execution of our transformation plan which has started to position the Company in a positive trajectory for a successful future," said Ken Traub, Chairman, President and CEO, who took the helm in January.
Bookings fell sharply, with net bookings of $79.4 million representing a book-to-bill ratio of 0.63x. The company’s funded backlog stood at $763.8 million at quarter-end.
Comtech recently secured a $40 million capital infusion and amended its credit facility to improve financial flexibility. The company is also conducting a strategic review with advisors TD Cowen and Imperial Capital.
Despite the earnings miss, Comtech highlighted progress on cost-cutting initiatives, including reducing its global workforce by approximately 13% since July 31, 2024, representing about $26 million in annualized labor cost savings.
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