DALAS,, August 16, 2021 / PRNewswire / – COMSovereign Holding Corp. (NASDAQ: COMS) (“COMSovereign” or “Company”), a US-based developer of 4G LTE Advanced and 5G communication systems and solutions, today reported financial results for the second quarter ended June 30, 2021.
- It’s over in three months June 30, 2021, total revenue is approximately $ 3,611,000 compared to approx $ 3,010,000 for the expiration of the three months June 30, 2020, largely driven by sales at DragonWave, Drone Aviation and Sovereign Plastics. Consecutive quarterly revenues in the second quarter of 2021 increased by more than 73% compared to revenues for the first quarter of 2021. This successive increase reflects the contributions from Sky Sapience acquired in February 2021 as well as the increase in production that occurred at the end of the second quarter as a result of capital investments made in production and stocks with funds provided by the Company at the end of the first quarter of 2021.
- Revenue growth in the second quarter of 2021 was driven by a global shortage of key components and tight supply chain conditions, especially those related to DragonWave’s radio production. The company recently resolved many of the issues surrounding the production and testing of Fastback Intelligent Backhaul Radios (“IBRs”), which delayed delivery to customers in the second quarter. As announced today, mass production of Fastback Radio kits has already resumed, allowing initial implementation against $ 8.7 million for open orders with a first level network operator. Revenues from these open contracts are expected to be reflected in 3rd and 4th financial results for the quarter.
- Gross profit for the three months ended June 30, 2021 was approximately $ 1,798,000, representing a gross margin of 50%, an improvement over the gross profit of approx $ 1,457,000 and a gross margin of 48% reported for the past three months June 30, 2020.
- It’s over in three months June 30, 2021, total operating costs increased approximately $ 12,182,000, compared to approx $ 7,588,000 for the expiration of the three months June 30, 2020, due to the increased size of the business, increase in professional services, including accounting and legal, and staff throughout the organization.
- To June 30, 2021The company ended the quarter with approximately $ 4.9 million in cash and approximately $ 7.1 million invested in stocks and pre-planned production, which will be used for current production needs by the end of 2021.
- Investors can see the full 10-Q submission at www.sec.gov or on the company’s website at https://investors.comsovereign.com/SEC-Filings
“During the second quarter, our team made steady progress in implementing our focused strategic plan, highlighted by significant investments in inventory, production capacity with our contractual manufacturing partners and continued construction of our Tucson facility. first quarter and deployed in our business in the second quarter is only now beginning to contribute to our operations, “said Dan Hodges, Chairman and CEO of COMSovereign Holding Corp. “As can be seen in our announcement this morning, our investment in production has allowed us to resume mass production of our Fastback Intelligent Backhaul Radios, which we are now fulfilling an order from $ 8.7 million for a first-tier customer for the rest of the year. Based on the rapidly growing production capacity and the availability of the necessary components, the company expects the ability to meet Fastback’s orders for radios from approximately $ 40 million from customers in the next 8 to 10 months. “
Business highlights for the second quarter:
- In the second quarter, our air platform business, consisting of Sky Sapience and Drone Aviation, was busy supporting existing customers, both in the country and abroad. Both operations are also expanding production activities for new products and working with new partners in response to several new contracting opportunities. Based on current activities and inquiries, the Company believes that there will be new contracts to be performed before the end of the calendar year.
- VNC continues to be active with partners and customers in all sectors of its business, including commercial, federal / defense and academic. This effort was highlighted in a 5G joint research and development agreement (“CRADA”) with the National Institute of Standards and Technology (“NIST”) and the VNC’s participation in a National Guard technology exercise demonstration event (PATRIOT 21) with its partner , Hughes took place in June.
- The newly acquired Innovation Digital continues to partner with several major US government executives on their advanced radio waveforms. These technologies play an important role in the creation of next-generation wireless technologies, including software-defined radio systems for military and commercial markets. Innovation Digital also received its 18th US patent.
- RVision’s Patrol video surveillance product has been selected by the defense contractor for a single-source contract as part of a system to be installed on vehicles designed for foreign military sales. The contractor is seeking to expand the program to an unnamed country and has already engaged with other clients.
- Sovereign Plastics continues to benefit from promotion efforts as manufacturers seek to reduce supply chain dependence on foreign suppliers and register external sales above $ 1.2 million during the quarter and made a profit.
Hodges concludes: “Although there are opposite winds created by chip shortages and longer than ideal supply chains for selected components, the potential for COMSovereign remains great, driven by the demand for our 4G LTE and 5G technologies, which can play a decisive role. role in modernizing today’s public and private wireless networks. In addition, the strategic importance of Made in America is gaining new urgency thanks to new proposals for infrastructure costs, access to rural areas and federal purchases, and we believe we are in a good position to seize some of this trillion-dollar + opportunity. With our unique portfolio of radio hardware and software, including tethered drones, a full duplex of Lextrum in the band and the upcoming addition of SAGUNA Multi-access Edge Cloud (MEC) technologies and working together with a growing list of partners and universities, we see even more an opportunity for COMSovereign in the ongoing communication revolution. “
Results of the conference for the second quarter of 2021
COMSovereign Holding Corp. Chairman and Chief Executive Officer Dan Hodges will host a conference call followed by a Q&A period.
To access the call, please use the following information:
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Date: |
Monday, August 16, 2021 |
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Time: |
16:30 Eastern time, 13:30 Pacific time |
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Toll-free number: |
1-877-300-8521 |
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International dialing number: |
1-412-317-6026 |
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Ident. № at the conference: |
10159238 |
Please call the conference phone number 5-10 minutes before the start time. An operator will register your name and organization.
The conference call will be broadcast live and will be available for replay in http://public.viavid.com/index.php?id=146116 and through the investor relations section of the Company’s website at www.comsovereign.com.
A recurrence of the conference call will be available afterwards 19:30 Eastern time through August 23, 2021.
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Free repeat number: |
1-844-512-2921 |
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International repeat number: |
1-412-317-6671 |
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Repeat ID: |
10159238 |
For more information on COMSovereign, please visit www.COMSovereign.com and contact us Facebook and Twitter.
For COMSovereign Holding Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has gathered a portfolio of communication technology companies that improve network connectivity. By combining strategic acquisitions with organic research and development, COMSovereign has built a US-based communications solution provider capable of delivering end-to-end 4G LTE Advanced and 5G-NR telecommunications solutions to network operators, businesses and governments. For more information on COMSovereign, please visit www.COMSovereign.com.
Forecast statements
Some statements in this press release that are not historical facts are forward-looking statements that reflect current expectations, assumptions and estimates of future performance and economic conditions and include risks and uncertainties that could cause material differences in actual results. expected from the statements made here. Predictive statements are usually identified through the use of predictive terminology such as “believe”, “expect”, “may”, “look to”, “will”, “should”, “plan”, “intend”, “conditional”, “objective”. “,” See “,” potential “,” assessments “,” preliminary “or” predictive “or negative or comparable terminology, or by discussing a strategy or objectives or other future events, circumstances or effects. In addition, forward-looking statements in this publication include, but are not limited to, the impact of the current COVID-19 pandemic, which may limit access to company facilities, customers, management, support staff and professional advisors, and develop and delivers advanced voice communications and data systems, demand for the Company’s products and services, the availability of parts and components for product manufacturing, economic conditions in the United States and around the world, and the company’s ability to recruit and retain management, technical and sales staff . Additional information related to factors that may affect the Company’s results and forward-looking statements is disclosed in the Company’s documents to the SEC. The forward-looking statements contained in this press release are made as of the date of this press release and the Company disclaims any intention or obligation other than required by law to update or revise any forward-looking statements, whether or not as a result of a new information, future events or otherwise.
Contacts:
Steve Gersten, Investor Relations Director
COMSovereign Holding Corp.
813-334-9745
[email protected]
Relations with external investors:
Chris Tyson, Executive Vice President
MZ Group – MZ North America
949-491-8235
[email protected]
www.mzgroup.us
and
Media relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
[email protected]
SOURCE COMSovereign Holding Corp.
