COMSovereign Studies Third Quarter 2021 Monetary Outcomes | Texas Information

DALLAS, Nov. 15, 2021 /PRNewswire/ — COMSovereign Holding Corp. (NASDAQ: COMS and COMSP) (“COMSovereign” or the “Firm”), a U.S.-based developer of 4G LTE Superior and 5G communication programs and options at the moment reported monetary outcomes for the third quarter ended September 30, 2021.

• For the three months ended September 30, 2021, whole revenues have been roughly $4.1 million, a rise of roughly 103% in comparison with roughly $2.zero million for the three months ended September 30, 2020, pushed largely by gross sales on the Firm’s Fastback and Sovereign Plastics enterprise items. Sequentially, quarterly revenues within the third quarter of 2021 elevated over 14% versus income for the second quarter of 2021. For the 9 months ended September 30, 2021, revenues have been roughly $9.Eight million in comparison with roughly $7.5 million, representing a rise of roughly 31%.
• Income development within the third quarter of 2021 continued to be impacted by the worldwide scarcity of key elements and tight provide chain circumstances in addition to the delay within the awarding of a number of authorities contracts. The Firm is at present taking steps to mitigate the affect of provide chain and elements shortages by means of extra element sourcing and the interior redesign of sure radio subsystems.
• Gross revenue for the three months ended September 30, 2021, was roughly $2.three million, representing a gross margin of 55%, an enchancment from a gross revenue of roughly $1.2 million or 48% reported for the three months ended September 30, 2020. Gross margins within the third quarter of 2021 additionally continued to sequentially enhance from the 50% reported within the second quarter of 2021.
• For the three months ended September 30, 2021, whole working bills elevated to roughly $12.7 million in comparison with roughly $7.9 million for the three months ended September 30, 2020, because of the expanded measurement of the enterprise, will increase in skilled companies together with accounting and authorized, and staffing ranges throughout the group. As a part of ongoing integration actions at its three core enterprise items – World Telecom, Sky Sovereign and Energy Provides – it has carried out a number of enterprise course of enhancements, workers re-alignment and price reducing packages it believes will scale back whole working bills within the fourth quarter of 2021 and all through 2022.
• As of September 30, 2021, the Firm ended the quarter with roughly $2.9 million in money and roughly $10.Eight million invested in stock and $6.7 million in pre-paid bills. This vital improve was deliberate and displays stock builds anticipated to fulfill buyer calls for, primarily for radios and associated {hardware}, for the rest of the yr and into 2022. In October, the Firm accomplished an providing of 9.25% Collection A Most popular Inventory elevating $8.zero million in gross proceeds. Following this transaction, the Firm has paid down roughly $2.75 million in excellent debt.
• Traders can view the entire 10-Q submitting at www.sec.gov or on the Firm’s web site at https://buyers.comsovereign.com/SEC-Filings

“Third quarter outcomes replicate continued progress throughout the enterprise highlighted by the preliminary resumption of elevated manufacturing at Fastback. The flexibility to scale-up radio manufacturing whereas addressing constraints brought on by chip shortages and provide chain disruptions, is a major achievement and one which demonstrates the distinctive worth we have now in-built our home manufacturing and provide chain enterprise mannequin. Though income within the quarter was under expectations, our crew continues to adapt to the challenges by leveraging our inner design and manufacturing capabilities to fulfill buyer wants,” mentioned Dan Hodges, Chairman and CEO of COMSovereign Holding Corp.

Third Quarter Enterprise Highlights:

• Fastback resumed the amount manufacturing of its Clever Backhaul Radios (“IBRs”) enabling it to start fulfilling $8.7 million in open orders with a tier one community operator. Because of improved postproduction testing and element sourcing, the Firm is at present forward of schedule and is anticipated to finish supply in opposition to these open orders this month.
• DragonWave expanded its gross sales and distribution actions with the introduction of the “Prolong”-line of Extremely high-capacity and long-range mmWave radios designed to reliably ship multi-gigabit connections as much as 6 miles (10km) or extra with fiber-equivalent reliability of 99.999%. Prolong combines the sturdy and highest energy packet microwave expertise of DragonWave’s Concord product line with market-leading efficiency of Siklu’s EtherHaul™ E-Band (70/80 GHz) radios. This single answer is designed to deal with the necessity for long-range, ultra-high capability, cost-effective and ultra-reliable wi-fi connectivity by cellular community operators, rural broadband, and wi-fi web service suppliers (WISPs), public security organizations, in addition to metropolis, state, and native municipalities.
• In August, the Firm introduced the preliminary closing of its acquisition of Saguna and its revolutionary 5G cellular edge computing (MEC) software program. As a vital enabling expertise for 5G, Saguna is already powering the quickest 5G community on the earth and has superior a sequence of improvement deployments with main enterprises and operators. These efforts embody a brand new partnership announcement from Hewlett Packard Enterprise (HPE) and StarHub who’ve teamed as much as assist enterprises and authorities purchasers transfer time-critical workloads corresponding to synthetic intelligence (AI), automation, information analytics, machine studying (ML), and mission vital communications nearer to wherever clients require ultra-low latency efficiency.

Hodges concluded, “We stay optimistic in regards to the many alternatives which lay forward of COMSovereign. In contrast to many in our trade, we’re very lucky to have the distinctive capability to faucet inner sources like Sovereign Plastics and Silver Bullet Applied sciences and our personal home provide chain to design-out or remove troublesome to search out componentry and safe different sources of manufacturing. This functionality will proceed to be a beneficial aggressive benefit as we introduce a lot of new communication merchandise throughout our companies later this yr which we anticipate will contribute to robust development all through 2022.”

Third Quarter 2021 Outcomes Convention Name

COMSovereign Holding Corp. Chairman and CEO Dan Hodges Chief Monetary Officer Fran Jandjel will host the convention name, adopted by a question-and-answer interval.

To entry the decision, please use the next data:

Please name the convention phone quantity 5-10 minutes previous to the beginning time. An operator will register your identify and group.

The convention name might be broadcast stay and out there for replay at https://viavid.webcasts.com/starthere.jsp?ei=1511710&tp_key=17fc2f10e4 and by way of the investor relations part of the Firm’s web site at www.comsovereign.com.

A replay of the convention name might be out there after 7:30 p.m. Jap time by means of November 22, 2021.

For extra details about COMSovereign, please go to www.COMSovereign.com and join with us on Fb and Twitter.

About COMSovereign Holding Corp.

COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications expertise firms that improve connectivity throughout your complete community. By combining strategic acquisitions with natural analysis and improvement efforts, COMSovereign has constructed a U.S.-based communications answer supplier capable of ship end-to-end 4G LTE Superior and 5G-NR telecom options to community operators, enterprises, and governments. For extra details about COMSovereign, please go to www.COMSovereign.com.

Ahead-Wanting Statements

Sure statements on this press launch that aren’t historic information are forward-looking statements that replicate administration’s present expectations, assumptions, and estimates of future efficiency and financial circumstances, and contain dangers and uncertainties that would trigger precise outcomes to vary materially from these anticipated by the statements made herein. Ahead-looking statements are typically identifiable by means of forward-looking terminology corresponding to “imagine,” “expects,” “could,” “appears to be like to,” “will,” “ought to,” “plan,” “intend,” “on situation,” “goal,” “see,” “potential,” “estimates,” “preliminary,” or “anticipates” or the unfavourable thereof or comparable terminology, or by dialogue of technique or targets or different future occasions, circumstances, or results. Furthermore, forward-looking statements on this launch embody, however usually are not restricted to, the affect of the present COVID-19 pandemic, which can restrict entry to the Firm’s amenities, clients, administration, help workers, {and professional} advisors, and to develop and ship superior voice and information communications programs, demand for the Firm’s services and products, the supply of elements and elements for the manufacture of merchandise, financial circumstances within the U.S. and worldwide, and the Firm’s capability to recruit and retain administration, technical, and gross sales personnel. Additional data regarding elements which will affect the Firm’s outcomes and forward-looking statements are disclosed within the Firm’s filings with the SEC. The forward-looking statements contained on this press launch are made as of the date of this press launch, and the Firm disclaims any intention or obligation, apart from imposed by regulation, to replace or revise any forward-looking statements, whether or not because of new data, future occasions, or in any other case.

Contacts:

Steve Gersten, Director of Investor Relations

COMSovereign Holding Corp.

813-334-9745

buyers@comsovereign.com

Exterior Investor Relations:

Chris Tyson, Govt Vice President

MZ Group – MZ North America

949-491-8235

COMS@mzgroup.us

www.mzgroup.us

and

Media Relations for COMSovereign Holding Corp.:

Michael Glickman

MWGCO, Inc.

917-397-2272

mike@mwgco.internet

View authentic content material to obtain multimedia:https://www.prnewswire.com/news-releases/comsovereign-reports-third-quarter-2021-financial-results-301424558.html

SOURCE COMSovereign Holding Corp.