Comtech Telecommunications Corp (CMTL) 2025 Q3 法說會逐字稿

Welcome to Comtech Telecommunications Corp Conference Call for third-quarter of fiscal 2025. As a reminder, this conference call is being recorded.

歡迎參加 Comtech Telecommunications Corp 2025 財年第三季電話會議。提醒一下，本次電話會議正在錄音。

I would now like to turn the call over to Maria Ceriello, Senior Director of Financial Operations of Comtech. Please go ahead, Maria.

現在我想將電話轉給 Comtech 財務營運高級總監 Maria Ceriello。請繼續，瑪麗亞。

Thank you, operator, and thanks, everyone, for joining us today. I'm here with Ken Traub, Comtech's Chairman, President and CEO; Mike Bondi, CFO; Daniel Gizinski, President of Satellite and Space Communications business; and Jeff Robertson, President of the Terrestrial and Wireless Networks business.

謝謝接線生，也謝謝大家今天加入我們。與我一起出席的還有 Comtech 董事長、總裁兼執行長 Ken Traub、財務長 Mike Bondi、衛星和太空通訊業務總裁 Daniel Gizinski 以及地面和無線網路業務總裁 Jeff Robertson。

Before we get started, please note we have a detailed discussion of the quarter in the press release and 10-Q we issued this afternoon, which is available on our website as well as the SEC's website. Certain information presented in this call will include, but not be limited to, information relating to the future performance and financial condition of the company, the company's plans, objectives and business outlook and the plans, objectives and business outlook of the company's management.

在我們開始之前，請注意，我們在今天下午發布的新聞稿和 10-Q 中對本季度進行了詳細的討論，可以在我們的網站和美國證券交易委員會的網站上查閱。本次電話會議中提供的某些資訊包括但不限於與公司未來業績和財務狀況、公司計劃、目標和業務前景以及公司管理層的計劃、目標和業務前景有關的資訊。

The company's assumptions regarding such performance, business outlook and plans are forward-looking in nature and always involve significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Any forward-looking statements are qualified in their entirety by cautionary statements contained in the company's SEC filings.

本公司對此類業績、業務前景和計劃的假設具有前瞻性，並且始終涉及重大風險和不確定性。實際結果可能與此類前瞻性資訊有重大差異。任何前瞻性陳述均受本公司提交給美國證券交易委員會 (SEC) 的文件中警示性聲明的完整約束。

With that, I will turn it over to Ken. Ken?

說完這些，我會把麥克風交給肯。肯？

Thank you, Maria, and good afternoon, everyone. I appreciate you taking the time to join us today. I'm going to provide some high-level comments on the business and this past quarter's results and then turn it over to Mike to go deeper into the financials. Daniel and Jeff will also be available for questions during the Q&A section.

謝謝你，瑪麗亞，大家下午好。感謝您今天抽出時間參加我們的活動。我將對業務和上個季度的業績提供一些高層評論，然後將其交給麥克以更深入地探討財務狀況。丹尼爾和傑夫也將在問答環節回答問題。

When I took over as CEO of Comtech earlier this year, I unveiled a transformation plan and committed to earn the trust of all of our stakeholders by being transparent and delivering on our promises. In this spirit, I would like to provide an update on my observations and our progress in executing the transformation plan.

當我今年稍早接任 Comtech 執行長時，我宣布了一項轉型計劃，並承諾透過透明和兌現承諾贏得所有利害關係人的信任。本著這種精神，我想提供我的觀察結果以及我們執行轉型計劃的進展。

First, the update on my observations. Overall, while Comtech has faced significant challenges over the past few years, the company also has compelling opportunities that make it worthwhile to address these challenges so that we can capitalize on the upside. I will provide additional perspective on both the challenges and the opportunities ahead.

首先，更新我的觀察。總體而言，儘管 Comtech 在過去幾年中面臨著重大挑戰，但該公司也擁有令人矚目的機遇，值得我們應對這些挑戰，以便我們能夠利用其優勢。我將對未來的挑戰和機會提供更多看法。

Let's review the major challenges the company has been facing. We are, frankly, gratified that we have made significant progress in addressing many of these challenges, which include the following. First, this company has had a burdensome capital structure. Comtech has $168 million of senior secured debt with tight financial covenants, $65 million of subordinated debt and $200 million of preferred stock, plus additional rights and preferences from each of these securities.

讓我們回顧一下公司面臨的主要挑戰。坦白說，我們很高興在應對其中許多挑戰方面取得了重大進展，其中包括：首先，該公司的資本結構過於繁重。Comtech 擁有 1.68 億美元的優先擔保債務（附帶嚴格的財務契約）、6,500 萬美元的次級債務和 2 億美元的優先股，此外還有每種證券的額外權利和優先權。

Second, Comtech has an extensive cost structure. Due to the capital structure, organizational design, inefficiencies and various legacy factors, the company's historical cost structure has been much too high to support the company's recent historical revenue run rate.

其次，Comtech 的成本結構十分廣泛。由於資本結構、組織設計、效率低下和各種遺留因素，該公司的歷史成本結構過高，無法支撐公司近期的歷史收入運作率。

Third, Comtech has had an extensive leadership turnover. I am the fifth CEO to lead Comtech in less than four years. Other senior leadership positions in the company have been either vacant or in transition.

第三，Comtech 的領導階層發生了大規模變動。我是不到四年內領導 Comtech 的第五任執行長。該公司的其他高階領導職位要么空缺，要么處於過渡狀態。

Fourth, Comtech has had poor operational discipline. Weak disciplines have contributed to compliance shortcomings, a lack of accountability, outdated products remaining in the product line for too long, excessive production costs, overly aggressive inventory purchasing and a buildup in working capital, which has put additional pressures on cash management over the years.

第四，Comtech 的營運紀律很差。紀律薄弱導致合規性缺陷、缺乏問責、過時產品在產品線中停留時間過長、生產成本過高、庫存採購過於激進以及營運資本積累，這些都給多年來的現金管理帶來了額外的壓力。

And fifth, misaligned sales incentives. The company's commission structure has led, in some instances, to taking on unprofitable or very low-margin deals and further exacerbated the company's cash burn from excessive working capital commitments. There have been other challenges, but that summarizes the big ones.

第五，銷售激勵機制不協調。在某些情況下，該公司的佣金結構導致其承接無利可圖或利潤率極低的交易，並進一步加劇了公司因過多營運資本承諾而導致的現金消耗。還有其他挑戰，但以上總結了其中最大的挑戰。

Notwithstanding these historical challenges, Comtech does have attractive assets and compelling opportunities ahead, which include the following: in Satellite and Space, a strong market position with deep and long-standing relationships across a diversified customer base in both military and commercial end markets.

儘管面臨這些歷史性挑戰，科泰確實擁有誘人的資產和令人信服的機遇，其中包括：在衛星和太空領域，科泰擁有強大的市場地位，與軍事和商業終端市場的多元化客戶群建立了深厚而長期的關係。

Second, also in Satellite and Space, Comtech has proprietary technology and homegrown expertise that enables the development and supply of some of the world's most advanced modems, high-power amplifiers, troposcatter systems, cybersecurity training and other advanced products and services.

其次，同樣在衛星和航太領域，科泰擁有專有技術和本土專業知識，能夠開發和供應一些世界上最先進的數據機、高功率放大器、對流層散射系統、網路安全培訓和其他先進產品和服務。

Third, a growing addressable market for our Satellite and Space product offerings that is driven by the emergence of space as a contested military domain, the global demand for resilient, secure satellite communications, increased demand for high-speed connectivity and the emerging international interest in alternatives to Starlink.

第三，我們的衛星和太空產品的潛在市場不斷增長，這得益於太空成為有爭議的軍事領域、全球對有彈性、安全的衛星通訊的需求、對高速連接的需求增加以及國際社會對 Starlink 替代品的興趣。

Fourth, our Terrestrial and Wireless business retains high-quality, long-term customer relationships with states, municipalities and communications carriers, providing critical public safety and emergency response services.

第四，我們的地面和無線業務與各州、市政當局和通訊業者保持著高品質、長期的客戶關係，提供關鍵的公共安全和緊急應變服務。

Fifth, in T&W, our growth drivers include customer upgrades for next-generation core services, new cloud-based emergency response products and increased interest from international carriers for 5G location technologies.

第五，在T&W，我們的成長動力包括客戶對下一代核心服務的升級、新的基於雲端的緊急應變產品以及國際營運商對5G定位技術的興趣日益濃厚。

And six, finally, Comtech has a strong and deep talent throughout the organization. Personally, I have to say that now that I've gotten to work with this team and see them in action over the past few months, I'm impressed with the capabilities, talent and loyalty at all levels in Corporate, in Satellite and Space and in T&W.

第六，最後，Comtech 整個組織都擁有強大而深厚的人才。就我個人而言，我必須說，現在我已經與這個團隊合作，並在過去幾個月看到他們的行動，我對公司、衛星和空間以及 T&W 各個層面的能力、才華和忠誠度印象深刻。

Our transformation plan is intended to address the challenges I described earlier while enabling us to leverage Comtech's core strengths and capitalize on the opportunities in each of our businesses. I am pleased to report that our transformation plan is gaining traction, and notable progress is already evident in our improved financial performance.

我們的轉型計劃旨在應對我之前描述的挑戰，同時使我們能夠利用 Comtech 的核心優勢並利用我們每個業務中的機會。我很高興地報告，我們的轉型計劃正在獲得支持，我們的財務表現改善已經取得了顯著進展。

Before I get into some of the specifics of the quarter, I want to highlight that the Comtech of today is notably different than the Comtech of just a few months ago. There is a new sense of purpose and a sense of urgency. Lines of responsibility and accountability are clearer today. While the team recognizes the long-standing challenges that I described, there's also a shared pride in what we are accomplishing in both addressing those challenges and embarking on the path to capitalize on the compelling opportunities ahead.

在介紹本季的一些具體情況之前，我想強調的是，今天的 Comtech 與幾個月前的 Comtech 有明顯的不同。有一種新的目標感和緊迫感。如今，責任和義務界線更加清晰。雖然團隊認識到我所描述的長期存在的挑戰，但我們也對我們在應對這些挑戰和踏上利用未來巨大機遇的道路所取得的成就感到自豪。

As we previously announced, during the third quarter, we secured a $40 million capital infusion that enabled us to renegotiate terms with our senior secured lenders, which not only waived prior covenant breaches, but provided for the suspension of the fixed charge coverage ratio and the net leverage ratio covenants through the quarter ending on October 31, 2025. This was an important milestone as it addressed the issue of the company's prior breaches and improved our financial flexibility going forward. It is also a testament to the confidence that our lenders and preferred stockholders have in our transformation plan.

正如我們之前宣布的那樣，在第三季度，我們獲得了 4000 萬美元的資本注入，這使我們能夠與優先擔保貸款人重新談判條款，這不僅放棄了先前的違約行為，還規定在截至 2025 年 10 月 31 日的季度內暫停固定費用覆蓋率和淨槓桿率契約。這是一個重要的里程碑，因為它解決了公司先前的違規問題並提高了我們未來的財務靈活性。這也證明了我們的貸款人和優先股股東對我們的轉型計畫的信心。

In addition, we've implemented measures to align accountability throughout the organization, improve operational efficiency, streamline our product lines, increase gross margins and reduce administrative costs. I will give some specifics.

此外，我們也採取措施協調整個組織的責任，提高營運效率，簡化產品線，提高毛利率並降低管理成本。我將給出一些具體細節。

During the quarter, we continued to make progress in reducing costs and implementing additional efficiency measures. On the cost front, for example, we've reduced our annual labor costs by approximately $33 million through workforce reductions since July 31, 2024. These cost reductions represent the results of product rationalization and organizational streamlining. We have simplified the organizational structure through direct reporting lines and added direct accountability at the production site.

本季度，我們在降低成本和實施額外效率措施方面繼續取得進展。例如，在成本方面，自 2024 年 7 月 31 日以來，我們透過裁員將年度勞動成本降低了約 3,300 萬美元。這些成本的降低是產品合理化和組織精簡的結果。我們透過直接報告線簡化了組織結構，並在生產現場增加了直接責任。

We've also continued to streamline our product lines so that we can focus on delivering results on the components that matter. In fact, we have discontinued more than 70 products across the Satellite and Space business. The overall effect is higher margins that result from comparable revenue and lower costs. With a more targeted product market focus, we've strengthened customer relationships and notched important new business wins for the future.

我們也持續精簡我們的產品線，以便我們能夠專注於在重要的組件上取得成果。事實上，我們已經停止了衛星和航太業務的 70 多種產品。整體效果是由於收入可比且成本降低而帶來更高的利潤率。透過更有針對性的產品市場關注，我們加強了客戶關係並為未來贏得了重要的新業務。

Before I turn to the specific business units and recent developments, I want to note that, as we stated previously, we will only be providing updates on our previously disclosed strategic alternative processes if and when we have something specific to share. At this point, there is nothing to share.

在談到具體的業務部門和最新發展之前，我想指出的是，正如我們之前所說，只有當我們有具體內容可以分享時，我們才會提供有關我們之前披露的戰略替代流程的更新。目前還沒有什麼可以分享的。

Now I will provide some comments on our business units. Our Satellite and Space business is executing on initiatives to grow sales of next-generation products, improve gross margins and reduce operating expenses. In this business, we are capitalizing on our differentiated technologies and extensive customer relationship to develop new vectors for growth.

現在我將對我們的業務部門發表一些評論。我們的衛星和航太業務正在實施計劃，以增加下一代產品的銷售、提高毛利率並降低營運費用。在這項業務中，我們利用差異化的技術和廣泛的客戶關係來開發新的成長方向。

We've had recent strategic wins in digital SATCOM infrastructure, resilient communication programs and strategic multi-orbit connectivity. Organizational streamlining, product rationalization and improved operational discipline have contributed to lower costs while also helping to improve accountability at the site level and enhance our focus on priority products, production and customer commitments.

我們最近在數位衛星通訊基礎設施、彈性通訊計畫和戰略多軌道連接方面取得了戰略勝利。組織精簡、產品合理化和改進的營運紀律有助於降低成本，同時也有助於提高現場層面的責任感，並增強我們對優先產品、生產和客戶承諾的關注。

Additionally, as part of our commitment to improving operational discipline, Steve Black recently joined the Satellite and Space leadership team from General Dynamics as the new segment Chief Operating Officer reporting to Daniel Gizinski.

此外，作為我們致力於改善營運紀律的一部分，史蒂夫·布萊克最近加入了通用動力公司的衛星和太空領導團隊，擔任新部門首席營運官，向丹尼爾·吉津斯基匯報工作。

While I am pleased with the pace and trajectory of our progress this quarter, our Satellite and Space business has underperformed in recent quarters, and we have more work to do. Comtech previously disclosed that a large multiyear GFSR contract was under protest. On May 20, the US Army informed us that it had decided to award the contract to the incumbent.

雖然我對本季的進展速度和軌跡感到滿意，但我們的衛星和太空業務在最近幾季表現不佳，我們還有很多工作要做。康泰克先前透露，一項大型多年期 GFSR 合約正遭到抗議。5月20日，美國陸軍通知我們，已決定將合約授予現任者。

We've removed all associated orders from our funded backlog, which had the effect of $36 million de-booking this quarter. Excluding the de-booking, the Satellite and Space business' book-to-bill ratio was higher this quarter than it was in the second quarter of this year. While the loss of this contract has the aforementioned impact on bookings, backlog and future revenue, it should be noted that this GFSR contract had very low gross margin expectations.

我們已從已資助的積壓訂單中刪除了所有相關訂單，這導致本季取消了 3,600 萬美元的訂單。除掉取消預訂的情況外，本季衛星和航太業務的訂單出貨比高於今年第二季。雖然失去該合約會對訂單、積壓訂單和未來收入產生上述影響，但值得注意的是，該 GFSR 合約的毛利率預期非常低。

On April 9, we announced that following months of rigorous testing and performance validation, we completed initial deliveries of Comtech's next-generation VSAT systems to a strategic strategically significant allied Navy partner. This partner selected our systems for inclusion in its comprehensive programs to modernize its ships, submarines and ground-based stations. Deliveries are expected to continue over the next two years.

4 月 9 日，我們宣布，經過數月的嚴格測試和性能驗證，我們已向具有重要戰略意義的盟軍海軍夥伴完成了 Comtech 下一代 VSAT 系統的首次交付。該合作夥伴選擇我們的系統納入其船舶、潛艇和地面站現代化綜合計劃。預計未來兩年內將繼續交付。

And before moving on to T&W, as discussed in more detail in our Form 10-Q filing today, in late May 2025, we received a request for information from the Director of Defense Trade Controls, often referred to as the DDTC. Its request relates to voluntary disclosures that we already submitted to the government back in 2024 related to the potential misclassification of certain variants of our modems.

在討論 T&W 之前，正如我們今天提交的 10-Q 表中更詳細地討論的那樣，2025 年 5 月下旬，我們收到了國防貿易管制局局長（通常稱為 DDTC）的資訊請求。其請求涉及我們早在 2024 年就已向政府提交的自願披露，涉及我們調製解調器某些變體可能被錯誤分類的情況。

Since making these voluntary disclosures, we have taken internal corrective actions and are seeking licenses under the more restrictive ITAR classification for future exports. We are supporting the DDTC's review of the matter, and we'll provide updates as they occur.

自從這些自願揭露以來，我們已採取內部糾正措施，並正在根據更嚴格的 ITAR 分類尋求未來出口的許可證。我們支持 DDTC 對此事的審查，並將及時提供最新消息。

The Terrestrial and Wireless business had a strong quarter. Compared to the prior year period, T&W experienced higher net sales of next-generation 911 services and location-based solutions, offset in part by lower net sales of call handling solutions. T&W did better this quarter on many key metrics, including operating income, net income and adjusted EBITDA than it did last quarter as well as in the prior year period.

本季度，地面和無線業務表現強勁。與去年同期相比，T&W 的下一代 911 服務和基於位置的解決方案的淨銷售額有所增加，但呼叫處理解決方案的淨銷售額有所下降，部分抵消了這一增長。T&W 本季在許多關鍵指標上的表現均優於上一季和去年同期，包括營業收入、淨收入和調整後 EBITDA。

Our position as a trusted leader in handling emergency response assistance requests situation us well for delivering similar solutions through new devices and new delivery methods. The key drivers for growth in this segment are expected to include new cloud-based emergency response products and increased interest from international carriers in our 5G location technologies.

我們在處理緊急回應援助請求方面是值得信賴的領導者，這使我們能夠透過新設備和新交付方式提供類似的解決方案。預計該領域成長的主要驅動力包括新的基於雲端的緊急應變產品以及國際營運商對我們的 5G 定位技術日益增長的興趣。

I'm also pleased to report that the development of our latest next-generation 911 call handling solution is nearly complete. We anticipate launching this important new product later this month at the National Emergency Number Association Conference. Our next-generation 911 call handling product is designed to leverage cloud and AI capabilities to serve first responders in the US, Canada and Australia even better than the existing solutions.

我還很高興地報告，我們最新的下一代 911 呼叫處理解決方案的開發已接近完成。我們預計將於本月稍後在全國緊急號碼協會會議上推出這項重要的新產品。我們的下一代 911 呼叫處理產品旨在利用雲端和人工智慧功能，為美國、加拿大和澳洲的急救人員提供比現有解決方案更好的服務。

As a concluding comment, I want to highlight that, when I took over as CEO, I made it clear that the company needs to prioritize returning to positive cash flow. It is a significant milestone. The company generated GAAP cash flow from operations of a positive $2.3 million this quarter. This is the first quarter that Comtech generated positive GAAP cash flow from operations in the past eight quarters.

最後，我想強調的是，當我接任執行長時，我明確表示公司需要優先考慮恢復正現金流。這是一個重要的里程碑。本季度，該公司的 GAAP 營運現金流為正 230 萬美元。這是康泰克過去八個季度以來首次實現正的 GAAP 營運現金流。

Finally, I want to express my gratitude to our entire dedicated team as well as all of our stakeholders for their loyalty, perseverance and contributions. Frankly, the most gratifying aspect of my job is when I hear from our employees, our partners and our customers who love Comtech and feel the energy and optimism that comes from a renewed sense of purpose and the progress along a positive trajectory to a successful future for Comtech.

最後，我要向我們整個敬業的團隊以及所有利害關係人的忠誠、毅力和貢獻表示感謝。坦白說，我的工作中最令人欣慰的是，當我聽到我們的員工、合作夥伴和客戶說他們熱愛 Comtech，並感受到新的目標感和沿著積極的軌跡向 Comtech 的成功未來邁進所帶來的活力和樂觀。

And with that, I'll turn the call over to Mike to walk through the financials. Mike?

說完這些，我會把電話轉給麥克，讓他介紹一下財務狀況。麥克風？

Thank you, Ken. Before getting into the detailed results, I would like to first summarize this past quarter for you.

謝謝你，肯。在了解詳細結果之前，我想先為您總結過去一個季度。

Sequentially, our consolidated GAAP results were better than our second quarter of fiscal 2025. We experienced a better mix of higher gross margin business, lowered our operating expenses, increased our EBITDA and achieved positive cash flows from operations. The T&W segment continues to perform well, and our Satellite and Space Communications segment reported improved bottom line results. While more work is needed, we are encouraged by another good quarter of meaningful progress.

與上一季相比，我們的合併 GAAP 業績優於 2025 財年第二季。我們實現了更高毛利率業務的更好組合，降低了營運費用，增加了 EBITDA，並實現了正的營運現金流。T&W 部門繼續表現良好，我們的衛星和太空通訊部門報告了更好的底線表現。儘管還需要做更多的工作，但我們對又一個季度取得的有意義的進展感到鼓舞。

Now let's turn to the key metrics for this past quarter. Consolidated net sales were $126.8 million compared to $128.1 million a year ago and $126.6 million in Q2 of fiscal 2025. Relative to the prior year period, net sales this quarter in the T&W segment were higher, while the S&S segment was lower. Compared to last year, our T&W segment benefited from higher sales of our NG-911 services as we continue to migrate customers through their implementation phases on to recurring services.

現在讓我們來看看上個季度的關鍵指標。合併淨銷售額為 1.268 億美元，去年同期為 1.281 億美元，2025 財年第二季為 1.266 億美元。與去年同期相比，本季 T&W 部門的淨銷售額有所增加，而 S&S 部門的淨銷售額則減少。與去年相比，我們的 T&W 部門受益於 NG-911 服務銷售額的成長，因為我們繼續將客戶從實施階段轉移到定期服務。

Compared to last year, net sales in our S&S segment reflect lower sales of our troposcatter solutions, offset in part by higher sales of our SATCOM solutions. As discussed on prior earnings calls, within our troposcatter product line, our legacy next generation troposcatter contracts with the Marines and Army are winding down, as anticipated.

與去年相比，我們 S&S 部門的淨銷售額反映出我們對流層散射解決方案的銷售額下降，但部分被我們的 SATCOM 解決方案的銷售成長所抵銷。正如先前的財報電話會議所討論的那樣，在我們的對流層散射產品線中，我們與海軍陸戰隊和陸軍簽訂的下一代對流層散射合約正在逐步結束，正如預期的那樣。

Collectively, these two programs accounted for approximately $13 million of quarter-over-quarter reduction in net sales. Such reduction was substantially offset, though, by increased sales of VSAT equipment to the US Army and increased sales of our satellite ground infrastructure solutions.

這兩個項目合計導致淨銷售額環比減少約 1,300 萬美元。然而，這一減少被美國陸軍的 VSAT 設備銷售額的增加以及我們衛星地面基礎設施解決方案銷售額的增加大大抵消。

Sequentially, T&W's net sales increased 12% to $59.2 million. Net sales in this segment for the third quarter of fiscal 2025 included over $3 million of incremental NG-911 services revenue due to reaching an agreement with a statewide customer to retroactively invoice for certain recurring services that we have provided for in the past.

T&W 的淨銷售額較上季成長 12%，達到 5,920 萬美元。2025 財年第三季該部門的淨銷售額包括超過 300 萬美元的增量 NG-911 服務收入，這是由於與全州客戶達成協議，對我們過去提供的某些經常性服務進行追溯開立發票。

Without this adjustment, net sales in this segment increased sequentially about 6%. Gross margins in this segment, both in terms of dollars and percentage, also benefited from such activity in Q3 as the associated cost of providing such services were mostly expensed in prior periods. Given the cumulative catch-up nature of such activity, we do not expect it to repeat in Q4.

若不計此項調整，該部門淨銷售額較上季成長約6%。該部門的毛利率（以美元和百分比計算）也受益於第三季的此類活動，因為提供此類服務的相關成本大部分已在前期計入費用。鑑於此類活動的累積追趕性質，我們預計它不會在第四季度重演。

Sequentially, S&S's net sales decreased 8.3% to $67.6 million as the prior second quarter of fiscal 2025 included higher sales of low-margin VSAT equipment to the US Army. Although net sales were down in the third quarter, the S&S segment was successful in achieving a more favorable product mix, resulting in an improved gross profit percentage compared to last quarter.

由於 2025 財年第二季向美國陸軍銷售的低利潤 VSAT 設備增加，S&S 的淨銷售額季減 8.3% 至 6,760 萬美元。儘管第三季淨銷售額下降，但 S&S 部門成功實現了更有利的產品組合，導致毛利率與上一季相比有所提高。

Overall, on a consolidated basis, gross margin was 30.7% in Q3 as compared to 30.4% a year ago. Gross margin in the more recent quarter also improved sequentially from the 26.7% reported in Q2. Consolidated net bookings were $71 million in the third quarter. Our consolidated book-to-bill ratio, a measure defined as bookings divided by net sales, for the three months ended April 30, 2025, was 0.56 times.

整體而言，以合併口徑計算，第三季的毛利率為 30.7%，而去年同期為 30.4%。最近一個季度的毛利率也較第二季的 26.7% 有所提高。第三季合併淨預訂額為 7,100 萬美元。截至 2025 年 4 月 30 日的三個月，我們的綜合訂單出貨比（定義為訂單量除以淨銷售額）為 0.56 倍。

Bookings in the more recent quarter reflect a $36.4 million de-booking related to the low-margin US Army GFSR contract that Ken just referenced. Gross bookings for the quarter, excluding this de-booking, were $107.4 million, representing a quarterly book-to-bill ratio of 0.85 times.

最近一個季度的訂單反映了與肯剛才提到的低利潤美國陸軍 GFSR 合約相關的 3,640 萬美元的取消訂單。不包括此取消預訂，本季總預訂額為 1.074 億美元，相當於季度訂單出貨比為 0.85 倍。

Our consolidated operating loss for Q3 decreased to $1.5 million compared to a $3.5 million operating loss in Q3 of last year and a $10.3 million operating loss last quarter in Q2. The sequential improvement this quarter is due to a more favorable sales mix and benefit of our cost reduction initiatives, lowering our overall operating expenses.

我們第三季的綜合營業虧損減少至 150 萬美元，而去年第三季的營業虧損為 350 萬美元，上一季第二季的營業虧損為 1,030 萬美元。本季業績的環比改善得益於更有利的銷售組合和成本削減措施帶來的好處，從而降低了我們的整體營運費用。

As reconciled in our Form 10-Q for the quarter, we utilize a non-GAAP measure that we refer to as adjusted EBITDA. Our consolidated adjusted EBITDA for Q3 increased to $12.6 million compared to $11.9 million in Q3 of last year and $2.9 million in Q2 last quarter. I just mentioned, our Q3 results included an incremental benefit to net sales and gross profit within our T&W segment that we do not anticipate repeating.

如我們本季的 10-Q 表所述，我們採用了非 GAAP 指標，稱為調整後 EBITDA。我們第三季的合併調整後 EBITDA 增至 1,260 萬美元，去年同期為 1,190 萬美元，上季第二季為 290 萬美元。我剛才提到，我們的第三季業績包括 T&W 部門淨銷售額和毛利的增量收益，我們預計這種情況不會重複。

Turning to the balance sheet. As highlighted on our prior earnings call, we amended our credit facility and subordinated credit facility to, among other things, waive all defaults, specifically the net leverage ratio and fixed charge coverage ratio, suspend testing of these covenants until October 31, 2025, reduce the interest rate on the term loan and the revolver loan, reduce the minimum quarterly average liquidity requirement to $17.5 million and allow for the new $40 million capital infusion in the form of subordinated debt.

轉向資產負債表。正如我們先前的財報電話會議所強調的那樣，我們修改了信貸安排和次級信貸安排，其中包括免除所有違約，特別是淨槓桿率和固定費用覆蓋率，暫停對這些契約的測試，直到 2025 年 10 月 31 日，降低定期貸款和循環貸款的利率，將最低季度平均流動性要求降低至 1750 萬美元，並允許以新的債務形式註入 40 萬美元的資本形式。

Of the subordinated debt proceeds received, $27.3 million and $9.1 million, respectively, net of fees were used to prepay, without penalty, a portion of the term loan and revolver loan outstanding under the credit facility, with $3.2 million of the revolver repayment representing a permanent reduction in commitment related to the revolver.

在收到的次級債務收益中，扣除費用後，分別有 2730 萬美元和 910 萬美元用於無罰金預付信貸安排下未償還的部分定期貸款和循環貸款，其中 320 萬美元的循環貸款償還額代表了與循環貸款相關的承諾的永久性減少。

At both April 30, 2025 and June 6, 2025, total outstanding borrowings under the credit facility were $168 million, including $23.4 million drawn on the revolver. As of June 6, our available sources of liquidity approximate $27.3 million, consisting of qualified cash and cash equivalents and the remaining available portion of the revolver. As of April 30, 2025, total outstanding borrowings under the subordinated facility was $65 million, excluding accreted interest and make-whole adjustments.

截至 2025 年 4 月 30 日及 2025 年 6 月 6 日，信貸安排下的未償還借款總額為 1.68 億美元，其中包括循環信貸提取的 2,340 萬美元。截至 6 月 6 日，我們可用的流動資金來源約為 2,730 萬美元，包括合格現金和現金等價物以及循環信貸的剩餘可用部分。截至 2025 年 4 月 30 日，次級貸款項下的未償還借款總額為 6,500 萬美元，不包括累積利息和補償調整。

And the liquidation preference of our outstanding convertible preferred stock was $199.7 million, excluding potential increases in the liquidation preference and other obligations that could be triggered by, among other things, breaches of covenants, asset sales and or a change in control of the company.

我們已發行可轉換優先股的清算優先權為 1.997 億美元，不包括清算優先權的潛在增加以及可能因違反契約、資產出售和/或公司控制權變更等原因引發的其他義務。

With respect to receivables, our consolidated net unbilled balance approximated $73 million as of April 30, 2025, up slightly from the approximate $69 million last quarter, but substantially down from the $123.7 million as of July 31, 2024.

就應收帳款而言，截至 2025 年 4 月 30 日，我們的合併淨未開票餘額約為 7,300 萬美元，略高於上一季的約 6,900 萬美元，但大幅低於截至 2024 年 7 月 31 日的 1.237 億美元。

The sequential increase is due to the timing of the aforementioned retroactive NG-911 milestone billing in the T&W segment, which is anticipated to occur in Q4. And the decrease from last year is largely due to the aforementioned wind down of our next-generation troposcatter contracts as anticipated as well as a bad debt reserve established earlier in fiscal 2025 related to an international customer.

環比增長是由於 T&W 部門中上述追溯性 NG-911 里程碑計費的時間安排，預計將在第四季度發生。與去年相比有所下降，主要是由於我們預期的下一代對流層散射合約的終止，以及 2025 財年早些時候為一位國際客戶設立的壞帳準備金。

In Q3, we generated, as Ken mentioned, $2.3 million of positive consolidated operating cash flows on a GAAP basis. Operating cash flows for the quarter included close to $7 million in aggregate cash payments, mostly at the parent level for restructuring costs, including severance, CEO transition costs and professional fees related to the modification of our subordinated credit facility on March 3. Thus, cash flows for the quarter would have been higher without these items.

正如肯所提到的，在第三季度，我們根據 GAAP 產生了 230 萬美元的正合併經營現金流。本季的營運現金流包括近 700 萬美元的現金支付總額，大部分是母公司層面的重組成本，包括遣散費、執行長過渡費用以及與 3 月 3 日修改次級信貸安排相關的專業費用。因此，如果沒有這些項目，本季的現金流會更高。

Now let me turn the call back over to Ken. Ken?

現在讓我把電話轉回給肯。肯？

Thank you, Mike. To summarize, first, we recognize Comtech has long-standing challenges, much of which we have already made strong progress in resolving. Second, Comtech has strong assets and compelling opportunities for growth and value creation. And third and finally, we have already made significant progress in executing on our transformation plan, which is already resulting in improved financial performance, enhanced accountability and improved pride in the future of Comtech.

謝謝你，麥克。總而言之，首先，我們認識到 Comtech 面臨著長期存在的挑戰，其中許多挑戰我們已經在解決方案方面取得了重大進展。其次，Comtech 擁有強大的資產和極具吸引力的成長和價值創造機會。第三，也是最後一點，我們在執行轉型計劃方面已經取得了重大進展，這已經改善了財務業績，增強了責任感，並增強了人們對 Comtech 未來的自豪感。

Operator, please open the call to questions.

接線員，請打開電話詢問。

(Operator Instructions)

（操作員指示）

And we'll take our first question from Greg Burns with Sidoti. Your line is open. Greg, you may need to check the mute function on your device. Greg Burns, your line is open.

我們將從 Sidoti 的 Greg Burns 那裡得到第一個問題。您的線路已開通。格雷格，您可能需要檢查設備上的靜音功能。格雷格·伯恩斯，您的路線已開通。

Mike Crawford, B. Riley Securities.

邁克·克勞福德，B. Riley 證券。

Thank you. In Satellite and Space, there's a number of next-generation digital back-end modems that are under development, including EDIM. And can you just walk through where you stand on development acceptance and potential full rate production for some of these most important platforms?

謝謝。在衛星和太空領域，有許多下一代數位後端調變解調器正在開發中，包括 EDIM。您能否簡單介紹一下您對這些最重要平台的開發接受度和潛在全速率生產的現狀？

Thanks, Mike. We'll let Daniel take that question.

謝謝，麥克。我們讓丹尼爾來回答這個問題。

Yeah, thanks for the question. I think a really important one. I'll try and briefly summarize some of the progress we've made on the next-generation digital platforms and where we are in that transition. As pointed out, we do have a number of products under development, one of which is with the US Army under their EDIM program. We continue to make good progress in the development of that platform. There is still some ongoing work that we're expecting to see completed prior to moving into a joint certification phase with the US Army.

是的，謝謝你的提問。我認為這確實很重要。我將嘗試簡要總結我們在下一代數位平台上取得的一些進展以及我們在這項轉型中所處的位置。正如所指出的，我們確實有許多產品正在開發中，其中之一就是與美國陸軍合作的 EDIM 計劃。我們在該平台的開發方面繼續取得良好進展。在進入與美國陸軍的聯合認證階段之前，我們預計仍有一些工作需要完成。

There's still a couple of indeterminate dates that we have based on inputs from subcontractors, but we are expecting to make significant progress in moving towards certification prior to the end of the calendar year. In terms of other products in the portfolio, we've made really strong progress in some of the variants and actually have early production units that have been deployed to a couple of key select customers for several of the products within that family.

根據分包商的意見，我們仍有幾個不確定的日期，但我們預計在年底之前在認證方面取得重大進展。就產品組合中的其他產品而言，我們在某些​​變體上取得了長足的進步，並且實際上已經為該系列中的幾種產品部署了早期生產單元，並將其部署到幾個關鍵的特定客戶。

Okay. Thank you. And then just switching gears to the 911 business, are there any outstanding competitions that you're tracking or awards submitted that you're awaiting decision on for that business?

好的。謝謝。然後轉到 911 業務，您是否正在追蹤任何未完成的比賽或提交任何獎項，等待對該業務做出決定？

Thanks Mike, we'll let Jeff handle that one.

謝謝麥克，我們會讓傑夫來處理這個問題。

Thanks for the question, Mike. The simple answer to your question is, yes, there's a number. The RFP process, obviously, with competition, we prefer not to comment on which ones we're in, but there's a number of compelling bids that we're waiting on.

謝謝你的提問，麥克。對你的問題的簡單回答是，是的，有一個數字。顯然，RFP 流程存在競爭，我們不願評論我們參與了哪些投標，但我們正在等待一些引人注目的投標。

Okay. And then just in terms of the current quarter that we're about halfway through, how would you characterize bookings so far in this quarter? And is there any thought on how the second half of the quarter might look like?

好的。那麼就目前已過半的本季而言，您如何描述本季迄今的預訂情況？您對本季下半段的情況有何看法？

We're not going to -- we're not in the mode of giving guidance, Mike. And so at this stage in the quarter, we're really not going to comment on Q4.

我們不會——我們不會提供指導，麥克。因此，在本季度的這個階段，我們實際上不會對第四季度發表評論。

Okay, thank you.

好的，謝謝。

Greg Burns, Sidoti.

格雷格·伯恩斯，西多蒂。

Good afternoon. The number of products that you discontinued on the satellite side of the business, how much revenue is going to be going away over the next -- and I guess, over what time frame?

午安.您在衛星業務方面停止生產的產品數量，未來一段時間會損失多少收入？我想，在什麼時間範圍內？

Well, we don't expect it to be a material impact on revenue, but I'll let Daniel get into the specifics on what we cut and what we expect the impact to be.

嗯，我們預計這不會對收入產生重大影響，但我會讓丹尼爾詳細說明我們削減了哪些開支以及我們預計會產生什麼影響。

Absolutely. Thank you for the question. I think we discussed in the previous earnings calls that we expected the impact as a result of some of these discontinued products to be less than 10% of the Satellite and Space segment revenue. I think that still aligns with our expectations.

絕對地。謝謝你的提問。我想我們在之前的財報電話會議上討論過，我們預計部分停產產品的影響將不到衛星和太空部門收入的 10%。我認為這仍然符合我們的預期。

And I think ultimately, we've seen, as we've discontinued a number of these products, it's allowed us to emphasize development and production of some of the newer later-generation products that come at a slightly higher margin. I think ultimately, no material changes expected as a result of -- above what's previously been discussed to revenue as a result of discontinuing those products.

我認為最終我們看到，隨著我們停止生產一些此類產品，我們能夠將重點放在一些利潤率略高的較新一代產品的開發和生產上。我認為最終不會出現任何重大變化——除了之前討論的停止生產這些產品對收入的影響之外。

Okay. Greg, this is consistent with a strategy of focus. we are deliberately eliminating product lines that are either obsolete or low margin and enabling us to focus better on those products that we can deliver to customers, better solutions at fair and appropriate margins. So this, we hope, will result in better service to customers, more satisfied customers and improved gross margins.

好的。格雷格，這與專注策略是一致的。我們有意淘汰那些過時或利潤率低的產品線，以便我們能夠更好地專注於那些我們可以向客戶提供的產品，以公平和適當的利潤率提供更好的解決方案。因此，我們希望這將為客戶提供更好的服務、更高的客戶滿意度和更高的毛利率。

Okay. And in Terrestrial and Wireless, the revenue has been relatively flat there for a while, and you've mentioned some growth opportunities there. So what's the outlook in terms of maybe returning that segment to growth? And do you have any initiatives in place to improve the margins of that business?

好的。在地面和無線領域，收入一段時間以來相對平穩，您也提到了一些成長機會。那麼該領域恢復成長的前景如何？您是否採取了任何措施來提高該業務的利潤率？

Jeff, do you want to get into some more specifics there?

傑夫，你想了解更詳細的資訊嗎？

Yes. Sure, Greg. I think the first part of your question is growth, and we obviously don't comment on financial performance and growth. But I will tell you from a strategy perspective, we do see in our, what we call, CLT business, a growth opportunity in the international carrier markets, especially in 5G with some of the services we provide to carriers in North America. We're seeing a great move there from a growth perspective.

是的。當然，格雷格。我認為您問題的第一部分是成長，我們顯然不會對財務表現和成長發表評論。但從策略角度來看，我們確實看到了我們所謂的 CLT 業務在國際營運商市場的成長機會，特別是在 5G 領域，我們為北美營運商提供的一些服務。從成長角度來看，我們看到了巨大的進步。

We also see and are looking at launching some new products. You see in our announcement a new cloud-based call handling product that would enter us into a new segment of the market and open up other markets for us with that. So those are probably the main drivers for growth.

我們也看到並正在考慮推出一些新產品。您可以在我們的公告中看到一款新的基於雲端的呼叫處理產品，它將使我們進入一個新的細分市場，並為我們開拓其他市場。所以這些可能是成長的主要動力。

On the margin part of your question, we do believe we are looking very, very hard at the architecture and the ways we deploy our Next Gen 911 networks, both historically and in the future for our new customers, and do believe we can do a better job on our margin performance there. Also, when deploying cloud-based products, it usually has a different margin profile, which I'm counting on to be positive, but we haven't necessarily deployed those yet. That's a new product.

關於您問題的利潤部分，我們確實認為我們正在非常認真地研究下一代 911 網路的架構和部署方式，無論是過去還是未來，我們都將為新客戶做好準備，並相信我們可以在那裡更好地提高利潤率。此外，在部署基於雲端的產品時，它通常具有不同的利潤率，我希望這是積極的，但我們不一定部署這些。那是一個新產品。

Do you have a target for maybe where you think that the business can operate from maybe an EBITDA margin or operating margin perspective?

從 EBITDA 利潤率或營業利潤率的角度來看，您是否有目標？

At this time, I probably wouldn't want to comment on that publicly. But yes, I would stay just by my comments, on the strategy.

目前，我可能不想公開評論此事。但是的，我只會對該策略發表我的看法。

Okay. All right thank you.

好的。好的，謝謝。

And it does appear that there are no further questions at this time. I would now like to turn it back to the company for any additional or closing remarks.

目前看來沒有其他問題了。現在我想將發言權交還給公司，以便發表任何補充或結束語。

We'd like to thank you for your continued interest and support of Comtech and look forward to reporting next quarter and beyond. Thank you all for your support and interest in Comtech.

我們感謝您對 Comtech 的持續關注和支持，並期待下個季度及以後的報告。感謝大家對 Comtech 的支持與關注。

This does conclude today's program. Thank you for your participation. You may disconnect at any time, and have a wonderful afternoon.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，並度過一個美好的下午。