Transformation Plan Progress
Comtech's transformation plan is gaining traction, leading to improved financial performance, enhanced accountability, and a renewed sense of purpose among employees.
Capital Infusion and Improved Financial Flexibility
Secured a $40 million capital infusion, renegotiated terms with senior secured lenders, and improved financial flexibility by suspending certain financial covenants.
Cost Reduction Measures
Reduced annual labor costs by approximately $33 million through workforce reductions and streamlined organizational structure.
Positive Cash Flow from Operations
Generated GAAP cash flow from operations of a positive $2.3 million, the first positive cash flow in the past 8 quarters.
Improved Gross Margins
Achieved a consolidated gross margin of 30.7% in Q3, up from 30.4% a year ago and 26.7% in Q2 of fiscal 2025.
Strategic Wins in Satellite and Space
Secured strategic wins in digital SATCOM infrastructure and resilient communication programs with recent product deliveries to an allied Navy partner.
Terrestrial and Wireless Segment Performance
The T&W segment experienced higher net sales of next-generation 911 services and location-based solutions, showing improved operating income and EBITDA.