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The AI Energy Revolution: Is Nuclear Power the Next Frontier?

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Big Tech is driving nuclear energy investments to meet AI data center demands.
– SMRs (Small Modular Reactors) are gaining attention, but are still in the experimental stage.
– Few public investment options exist in nuclear power, though related stocks have surged.

Nuclear power is emerging as a key player in the race to meet the enormous energy demands of AI-generating data centers, as Big Tech giants look for reliable, clean energy sources to fuel their operations. In recent weeks, Microsoft, Google, and Amazon have each announced significant investments in nuclear energy, signaling that this technology could be poised for a major comeback in the U.S. energy landscape.

Microsoft’s partnership with Constellation Energy to restart the shuttered Three Mile Island nuclear reactor, Google’s collaboration with Kairos Power to harness Small Modular Reactors (SMRs), and Amazon’s $500 million investment in SMR developer X-Energy highlight a growing trend. These tech giants are betting on nuclear power as a sustainable solution to the skyrocketing energy needs of AI, cloud computing, and data center operations.

For decades, nuclear energy has contributed about 20% of the U.S. electricity supply. However, the industry has stagnated, facing stringent regulatory requirements and high costs that have made it difficult for new reactors to come online. The recent openings of reactors at the Vogtle plant in Georgia were the first new units in seven years, underlining the slow pace of expansion in this sector.

But as Big Tech’s energy consumption continues to grow, driven by the demands of AI and other data-heavy applications, nuclear power has come back into focus. The goal of SMRs is to create smaller, more flexible reactors that are cost-effective and can be built closer to the grid. These reactors have the potential to power everything from industrial operations to sprawling data centers. However, it’s important to note that these reactors are still in the experimental stage in the U.S. The first fully operational units are not expected to be online until the early 2030s, with Microsoft’s project at Three Mile Island targeting a restart by 2028.

Investors looking to capitalize on the nuclear resurgence have few direct options. Companies like NuScale Power (SMR) and Oklo (OKLO) have seen their stock prices soar as investor interest in nuclear technologies grows, but they remain speculative, given the unproven nature of SMRs. NuScale, for example, has seen its shares rise by over 450% this year alone, while Oklo, backed by OpenAI’s Sam Altman, has gained more than 80% since going public through a SPAC.

This shift toward nuclear also ties into broader trends we’ve covered recently, including the increasing focus on renewable energy solutions to power data centers. For instance, Amazon’s recent investments in small modular reactors through X-Energy are a continuation of its efforts to secure clean energy sources, mirroring its $500 million commitment to clean energy projects we wrote about earlier this week. These investments by tech companies not only signal a growing need for energy but also show a strategic shift toward sustainable, scalable solutions.

Energy companies, particularly those involved in nuclear power, utilities, and uranium production, have been significant beneficiaries of this renewed interest. Stocks of utility companies and uranium producers like Cameco (CCJ) and Uranium Energy (UEC) are near record highs as investors seek exposure to this trend. In fact, as we mentioned in our analysis of Wolfspeed’s $750 million chips grant, the intersection of tech and energy—especially AI—continues to drive investment across multiple sectors.

As AI technology continues to evolve, one thing is clear: the next frontier for tech could be nuclear power. With billions of dollars flowing into this once-stagnant industry, nuclear energy may soon be a critical component of the AI revolution. While there are still significant hurdles to overcome, Big Tech’s commitment to nuclear energy signals a major shift in how the world’s largest companies are planning to power the future.

Release – Comtech Announces Transformation Strategy and Capital Structure Update

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

Board of Directors Discloses Strategic Alternatives Process for Terrestrial & Wireless Networks Segment; Comtech to Become a Pure-Play Satellite and Space Communications Company

Company Amends Credit Facility and Enters into New Subordinated Unsecured Term Loan Facility

CHANDLER, Ariz. – Comtech (NASDAQ: CMTL) (the “Company”), a global technology leader, today announced that its Board of Directors and management team are executing a strategy to transform Comtech into a pure-play satellite and space communications company and provided a capital structure update.

Ongoing and future actions supporting Comtech’s transformation strategy include:

  • An exploration of strategic alternatives for the Company’s Terrestrial & Wireless Networks (“T&W”) segment, which is well underway;
  • The pursuit of further portfolio-shaping opportunities to enhance profitability, efficiency and focus; and
  • The implementation of additional operational initiatives to align Comtech’s go-forward cost structure with a pure-play focus on satellite and space communications.

Comtech’s Board of Directors noted, “Comtech is in the midst of a transformational journey. Earlier this year, we enhanced our T&W segment with a new management team to drive growth and improved profitability. Given the strength and value we see in our T&W segment, we initiated a process to explore strategic alternatives for this business to unlock value for Comtech shareholders. We believe the best path forward for shareholders is the creation of a pure-play satellite and space communications company with a simplified capital structure, streamlined operations and strong balance sheet. This strategy is the product of months of careful evaluation conducted with the assistance of management and independent advisors. We look forward to providing an update on the strategic alternatives process and broader strategy at key milestones.”

Strategic Alternatives Process for the T&W Segment

Comtech’s T&W business is a leading provider of next-generation 911 (“NG911”) infrastructure and solutions for state and local governments and telecom carriers across North America. Enhanced by the leadership of new executive management, in fiscal 2024, the T&W segment has more than doubled its bookings of orders for next-generation solutions. Additionally, as a result of a more refined strategic focus and the achievement of certain cost-containment and operational efficiency measures, T&W is on track to delivering strong year-over-year bottom line performance.

Comtech’s recent T&W wins and milestones include a long-term competitive contract renewal for NG911 solutions in the Commonwealth of Massachusetts; the buildout of Pennsylvania’s NG911 statewide network; a mandate for the Toronto Police Service’s NG911 solution; a long-term NG911 renewal with the North Central Texas Emergency Communications District; a statewide NG911 solution in the Northeast U.S. in partnership with Consolidated Communications; and multi-province NG911 deployments in Canada. Demand for these solutions is expected to continue growing following a July 2024 ruling by the U.S. Federal Communications Commission to advance the nationwide transition to NG911.

The Board had previously retained independent financial advisors to assist in its strategic review earlier this year and, in recent months, commenced a strategic alternatives process for the T&W business.

The Board added, “Comtech deeply values its T&W customers, who put their trust in our best-in-class public safety solutions to keep their communities and people connected in their most critical moments. We expect to move forward with a partner who will focus on this attractive business and its customers, talented team members and valued service providers.”

There can be no assurance that the exploration of strategic alternatives will result in a transaction or other strategic changes or outcomes. There is no timeframe for the conclusion of the process, and the Company does not intend to comment further regarding this matter unless and until further disclosure is determined to be appropriate or necessary.

Pure-Play Satellite and Space Communications Company

Comtech’s Satellite & Space Communications (“S&S”) segment is a U.S.-based, leading provider of advanced modems and high-power amplifier technologies, and a market leader in troposcatter technologies. The S&S segment has an innovative portfolio of these mission-critical technologies and serves some of the world’s largest defense contractors and allied foreign governments, as well as multiple U.S. government agencies, including branches of the U.S. Armed Forces, U.S. Department of Defense (“DoD”) and U.S. Space Force (“USSF”), among others.

The S&S business operates in large and growing end markets that benefit from multiple tailwinds and demand-drivers, including growing global geopolitical tensions, rising global defense spending, and high barriers to entry. Further, these end markets are undergoing technology upgrade cycles and modernization initiatives that are expected to underpin demand for years to come. Fueling these cycles are the USSF’s Commercial Space Strategy and the DoD’s Joint All Domain Command and Control approach, which are expected to generate strong demand for the S&S business’ next-generation digital solutions. Today, only a limited number of companies, including Comtech, can serve the complex needs of the U.S. and other governments and meet this demand.

Proceeds from the potential divestiture of T&W would enable Comtech to substantially simplify its capital structure and strengthen its balance sheet. Paired with additional targeted portfolio optimization and a singular focus on satellite and space communications, the go-forward company would be well-positioned to capitalize on growth opportunities.

Portfolio-Shaping and Operational Initiatives

In connection with the Board’s transformative strategy, the Company has undertaken a detailed evaluation of its S&S portfolio to identify opportunities to divest, separate and/or rationalize businesses or facilities that are not core to Comtech’s go-forward focus.

Consistent with this effort, in its fourth fiscal quarter, Comtech made the decision to exit its subsidiary operations in Basingstoke, United Kingdom. The U.K. operations were established in connection with the prior management team’s 2020 acquisition of CGC Technology Limited, which primarily served customers in Europe. Following the acquisition, Comtech continued to invest in the Basingstoke facility to advance LEO constellation-based antenna technologies in anticipation of a significant production order. Taking into consideration the significant ongoing investment as well as unfavorable contract terms on prospective antenna sales, the Board concluded the U.K. business would not generate an attractive return on invested capital and made the decision to exit these operations. After anticipated restructuring charges associated with the exit of the Basingstoke operations, Comtech expects to realize approximately $10 million of annual cash savings.

In addition to its ongoing efforts to improve the cash conversion cycle and manage the balance sheet, Comtech has been working with independent advisors to identify opportunities to align the Company’s cost structure with its go-forward focus on satellite and space communications.

Furthermore, over the past several months, Comtech has conducted an intensive review of its product portfolio to focus future investment on the Company’s most strategic, high-margin revenue opportunities within its S&S portfolio. While anticipated to improve the Company’s profitability in future periods, such actions may result in near-term restructuring charges.

Amended Credit Agreement and New Subordinated Term Loan Facility

On October 16, 2024, Comtech filed a Form 12b-25 with the Securities and Exchange Commission (“SEC”) noting that it is unable to file its Annual Report on Form 10-K for the period ended July 31, 2024 within the prescribed time period without unreasonable effort or expense, and that the Company anticipates reporting significantly lower-than-expected performance, primarily in its S&S segment, in the fourth fiscal quarter.

In light of this, the Company entered into an amendment to its existing credit facility dated June 17, 2024. Among other things, the amendment waives defaults or events of default in connection with the Company’s Net Leverage Ratio and Fixed Charge Coverage Ratio covenants for the fourth fiscal quarter. To cure defaults, maintain appropriate liquidity and support the Company’s transformation initiatives, Comtech entered into a new $25.0 million subordinated unsecured term loan facility with the existing holders of the Company’s convertible preferred stock. Within the terms of the amended credit facility, this new subordinated unsecured term loan allows the Company to maintain a consistent level of borrowing capacity.

Additional information related to the Company’s credit facilities can be found in a Form 8-K that will be filed with the SEC.

Advisors

Imperial Capital, LLC is acting as financial advisor for the T&W strategic alternatives process. Sidley Austin LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel.

About Comtech

Comtech Telecommunications Corp. is a leading global technology company providing terrestrial and wireless network solutions, NG911 emergency services, satellite and space communications technologies, and cloud native capabilities to commercial and government customers around the world. Our unique culture of innovation and employee empowerment unleashes a relentless passion for customer success. With multiple facilities located in technology corridors throughout the United States and around the world, Comtech leverages its global presence, technology leadership, and decades of experience to create the world’s most innovative communications solutions. For more information, please visit www.comtech.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release contains, and oral statements made by our representatives from time to time may contain, forward-looking statements. Forward-looking statements can be identified by words such as: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “goal,” “outlook,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would,” and similar references to future periods. Forward-looking statements include, among others, statements regarding our expectations for the strategic alternatives process regarding our T&W segment, our expectations for further portfolio-shaping opportunities, our expectations for the other operational initiatives described in this press release, our expected financial results for the year and quarter ended July 31, 2024, the intended use of proceeds from the financing transactions described in this press release, our expectations for completing further financing initiatives, our future performance and financial condition, our plans to address our ability to continue as a going concern, the plans and objectives of our management and our assumptions regarding such future performance, financial condition, and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under our control which may cause our actual results, future performance and financial condition, and achievement of our plans and objectives of our management to be materially different from the results, performance or other expectations implied by these forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things: the outcome and effectiveness of the initiatives described in this press release, our ability to access capital and liquidity so that we are able to continue as a going concern; our ability to implement changes in our executive leadership; the possibility that the expected synergies and benefits from our strategic activities will not be fully realized, or will not be realized within the anticipated time periods; the risk that acquired businesses will not be integrated successfully; impacts from and uncertainties regarding future actions that may be taken by Michael Porcelain and stockholders affiliated with him in furtherance of their nominations of director candidates for election at the Company’s Fiscal 2024 Annual Meeting of Stockholders; the possibility of disruption from acquisitions or dispositions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that we will be unsuccessful in implementing a tactical shift in our Satellite and Space Communications segment away from bidding on large commodity service contracts and toward pursuing contracts for our niche products and solutions with higher margins; the nature and timing of our receipt of, and our performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements; changing customer demands and/or procurement strategies and our ability to scale opportunities and deliver solutions to current and prospective customers; changes in prevailing economic and political conditions, including as a result of Russia’s military incursion into Ukraine, the Israel-Hamas war and attacks in the Red Sea region; changes in the price of oil in global markets; changes in prevailing interest rates and foreign currency exchange rates; risks associated with our legal proceedings, customer claims for indemnification, and other similar matters; risks associated with our obligations under our credit facilities; risks associated with our large contracts; risks associated with supply chain disruptions; and other factors described in this and our other filings with the Securities and Exchange Commission (“SEC”). However, the risks described above are not the only risks that we face. Additional risks and uncertainties, not currently known to us or that do not currently appear to be material, may also materially adversely affect our business, financial condition and/or operating results in the future. We describe risks and uncertainties that could cause actual results and events to differ materially in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative Disclosures about Market Risk” sections of our SEC filings. We do not intend to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, except as required by law.

Further, the Company’s financial closing procedures for the fiscal year and quarter ended July 31, 2024 are not yet complete. The expected financial results for the fiscal year and quarter ended July 31, 2024 described herein are estimates based on information available to management as of the date of this press release, have not been audited by the Company’s independent registered accounting firm, and are subject to change. It is possible that the final results may vary from these preliminary estimates upon completion of closing procedures and finalization of the Company’s audited consolidated financial statements.

Investor Relations

Maria Ceriello

631-962-7102

investors@comtech.com

Media

Jamie Clegg

480-532-2523

jamie.clegg@comtech.com

Jed Repko / Aura Reinhard

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

Release – NN, Inc. to Hold Third Quarter 2024 Earnings Conference Call on Friday, November 1, 2024

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on NNBR

CHARLOTTE, N.C., Oct. 17, 2024 (GLOBE NEWSWIRE) — NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, announced today that it will release its third quarter 2024 financial results for the period ended September 30th, 2024, after the close of the market on Thursday, October 31st, 2024. The Company will hold a related conference call on Friday, November 1st, 2024, at 9:00 a.m. E.T. Participants on the call are asked to register five to ten minutes prior to the scheduled start time by dialing 1-877-255-4315 and from outside the U.S. at 1-412-317-6579.

The conference call will be webcast simultaneously and in its entirety through the NN, Inc. Investor Relations website. Shareholders, media representatives and others may participate in the webcast by registering through the Investor Relations section on the company’s website at https://investors.nninc.com/.

For those who are unavailable to listen to the live call, a replay will be available shortly after the call on NN’s website through November 1st, 2025.

About NN, Inc.
NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit www.nninc.com.

Investor & Media Contacts:
Joe Caminiti or Stephen Poe, Investors
Tim Peters or Emma Brandeis, Media
NNBR@alpha-ir.com 312-445-2870

Source: NN, Inc.

SelectQuote (SLQT) – Debt Reduction Strategy Becomes Tangible

Posted on by cpereira@noblefcm.com


Friday, October 18, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

De-levering effort takes a step forward. On October 15, the company completed its previously announced securitization of a portion of its commission receivables, resulting in $100 million of newly issued securitized notes. With the proceeds, the company is paying down $100 million of its existing term loans. Importantly, the company also extended the maturities of the balance of its term loans to late 2027 (previously maturing in early 2025).

Attractive financing option. The average effective interest rate on the newly issued securitized loans is roughly 8.5%, significantly better than the company’s term loan effective rate (nearly 15%). Moreover, the newly created asset backed securities are investment grade and the company could offer the product to third-party asset managers in the future. Given that it has roughly $1 billion in commission receivables, we believe securitization is a powerful debt reduction tool for the company


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Comtech Telecommunications (CMTL) – Announces Transformation into Pure Play Satellite and Space Communications Company

Posted on by cpereira@noblefcm.com


Friday, October 18, 2024

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Transformation. Last night, Comtech issued a press release announcing its Board of Directors and management team are executing a strategy to transform Comtech into a pure-play satellite and space communications company and provided a capital structure update.

Strategic Alternatives. A key element of the plan is the potential sale of the Company’s Terrestrial & Wireless Networks business. According to the Board, “given the strength and value we see in our T&W segment, we initiated a process to explore strategic alternatives for this business to unlock value for Comtech shareholders.” If T&W can fetch peer group type multiples, this business segment alone would be worth well in excess of Comtech’s current enterprise value, in our view.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Bit Digital (BTBT) – Refining Third Quarter Estimates

Posted on by cpereira@noblefcm.com


Friday, October 18, 2024

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Management Comments. We had an opportunity to speak with management to further refine our go forward projections following the Enovum acquisition announcement. Management noted the mining business continues to be impacted post halving with reduced BTC production. Bit Digital mined 165.5 BTC in 3Q24, down from 244.2 BTC in 2Q24 and 410.7 BTC in 1Q24. For its GPU Cloud Services, management provided no new update on the Boosteroids contract or on its key customer and has seen roughly steady income throughout the third quarter. We had anticipated additional deployments under the key customer contract in 2024.

New Estimates. With the comments made from management, we refined our estimates to reflect the operating environment on both the segments. The lower BTC production results in a drop in 3Q24 mining revenue to $10.3 million from a prior $13.5 million, while our GPU segment revenue falls to $12.5 from a prior $18 million. For the third quarter, we now estimate total revenue of $23.2 million from our prior model of $31.9 million. Net loss is now $2.5 million or a loss of $0.02/sh from a prior estimate of net income of $1.5 million or $0.01/sh. Adj. EBITDA is now $6.7 million down from $10.6 million. For the year, we estimate total revenue of $120.5 million, down from our prior $133.2 million, net income of $37.5 million or EPS of $0.30, down from $42.1 million or $0.33, and adj. EBITDA of $78.7 million, down from $82.8 million.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Universal Stainless & Alloy Products to Be Acquired by Aperam for $45 Per Share in All-Cash Deal

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Aperam will acquire Universal Stainless for $45.00 per share in cash.
– The deal offers a 19% premium to the 3-month average stock price.
– Universal will maintain its U.S. identity and operations post-acquisition.

Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) has announced a definitive agreement to be acquired by Aperam, a global leader in stainless and specialty steel, in an all-cash deal valued at $45.00 per share. This acquisition represents a 19% premium to the company’s three-month volume-weighted average stock price, marking a significant milestone for Universal. The total value of the deal is expected to provide liquidity to shareholders while integrating Universal into Aperam’s global footprint.

The $45.00 per share cash offer reflects a valuation of 10.6x Universal’s trailing 12-month Adjusted EBITDA as of June 30, 2024. Upon completion, Universal will become a wholly-owned subsidiary of Aperam, furthering Aperam’s expansion into the U.S. market by providing its first domestic manufacturing presence. Universal will continue to operate under its existing name and maintain its headquarters in Bridgeville, PA, ensuring a seamless transition for employees and customers.

Christopher M. Zimmer, President and CEO of Universal, expressed optimism about the acquisition: “This is an exciting opportunity to become part of a respected leader with complementary capabilities. It’s a significant step forward that will accelerate our growth and offer tangible benefits to our stakeholders, including our stockholders, employees, and customers.”

Aperam sees this acquisition as a strategic move to strengthen its position in the stainless and specialty steel sector, particularly in aerospace and industrial applications. Timoteo Di Maulo, CEO of Aperam, stated, “Universal’s capabilities and vision align with our strategy for sustainable growth and innovation. This acquisition enhances our ability to provide superior solutions to high-quality, sustainable sectors.”

The deal has been unanimously approved by the boards of both companies and is expected to close in the first quarter of 2025, pending regulatory approvals and shareholder consent. Following the close, Universal’s shares will cease trading on the Nasdaq stock exchange, and the company will continue to operate as Universal Stainless under the umbrella of Aperam.

For investors, this acquisition provides liquidity and a premium return on their investments, while Universal employees can expect to maintain their roles, with extended access to resources and innovations from Aperam’s global research centers. Customers will benefit from increased product offerings and improved manufacturing capabilities, ensuring that the combined entity continues to lead in the specialty steel market.

Release – Tonix Pharmaceuticals Receives First Contract Payment from U.S. Department of Defense for Accelerated Development of Broad-Spectrum Antivirals with the Defense Threat Reduction Agency (DTRA)

Posted on by aweinsoff@channelchek.com

Research News and Market Data on TNXP

October 17, 2024 8:00am EDT Download as PDF

First payment received under Tonix’s contract with the Defense Threat Reduction Agency (DTRA), for up to $34 million over five years

CHATHAM, N.J., Oct. 17, 2024 (GLOBE NEWSWIRE) — Tonix Pharmaceuticals Holding Corp. (Nasdaq: TNXP) (Tonix or the Company), a fully-integrated biopharmaceutical company with marketed products and a pipeline of development candidates, received its first payment from the Defense Threat Reduction Agency (DTRA), an agency within the U.S. Department of Defense (DoD), to develop small molecule broad-spectrum antiviral agents for the prevention or treatment of infections to improve the medical readiness of military personnel in biological threat environments. The previously announced award from DTRA is for up to $34 million over five years.

“This award provides important validation and substantial non-dilutive funding for our ongoing research to advance our antiviral discovery program,” said Seth Lederman, M.D., Chief Executive Officer of Tonix Pharmaceuticals “With biological adaptations and mutations happening to viruses rapidly across the globe, this research will be crucial in order to protect lives in the event biological threats are introduced onto the battlefield.”

The $34.0 million five-year contract will help fund and accelerate the development of the Company’s broad-spectrum antiviral program, which has the potential to reduce viral load and allow the adaptive immune system to alert the other arms of the immune system to mount a protective response. Tonix plans to leverage previous research on phosphatase inhibitors, specifically compounds that target CD45, to optimize lead compounds for therapeutic intervention of biothreat agents and provide the government with a complete and cost-effective solution for a broad-spectrum medical countermeasure. Tonix’s premise is that partial inhibition of CD45 will provide optimal antiviral protection while requiring lower plasma drug concentrations, a lower dose, and a better safety profile.

Tonix will utilize its state-of-the-art research laboratory capabilities, including a Biosafety Level 3 (BSL-3) lab at its research and development center (RDC) facility located in Frederick, Md., as well as experienced personnel in-house. The RDC is located in Maryland’s ‘I-270 biotech corridor’ and is close to the center of the U.S. biodefense research community.

About Defense Threat Reduction Agency (DTRA)
The Defense Threat Reduction Agency (DTRA), an agency within the United States Department of Defense (DoD) is both a Defense Agency and Combat Support Agency with two distinct yet highly integrated roles countering Weapons of Mass Destruction (WMD) and emerging threats. Its origins stretch back to World War II and the Manhattan Project, but today the agency encompasses a wide variety of strategic and operational functions that deter, prevent, and ultimately prevail against these unique threats. DTRA enables the Department of Defense (DoD), the United States Government and international partners to counter and deter weapons of mass destruction (WMD) and emerging threats. DTRA provides cross-cutting solutions to enable the Department of Defense, the United States Government, and international partners to deter strategic attack against the United States and its allies; prevent, reduce, and counter WMD and emerging threats; and prevail against WMD-armed adversaries in crisis and conflict. DTRA’s continued effort to enhance the combat support mission also advances public health services by developing innovative technologies that protect against biological threats. For more information, visit www.dtra.mil.

Tonix Pharmaceuticals Holding Corp.**
Tonix is a fully integrated biopharmaceutical company focused on transforming therapies for pain management and modernizing solutions for public health challenges. Tonix’s development portfolio is focused on central nervous system (CNS) disorders, and its priority is to progress TNX-102 SL, a product candidate for which an NDA was submitted based on two statistically significant Phase 3 studies for the management of fibromyalgia. The FDA has granted Fast Track designation to TNX-102 SL for the management of fibromyalgia. TNX-102 SL is also being developed to treat acute stress reaction and acute stress disorder under a Physician-Initiated IND at the University of North Carolina in the OASIS study funded by the U.S. Department of Defense (DoD). Tonix’s CNS portfolio includes TNX-1300 (cocaine esterase), a biologic in Phase 2 development designed to treat cocaine intoxication that has FDA Breakthrough Therapy designation and its development is supported by a grant from the U.S. National Institude of Drug Abuse and Addiction (NIDA). Tonix’s immunology development portfolio consists of biologics to address organ transplant rejection, autoimmunity and cancer, including TNX-1500, which is an Fc-modified humanized monoclonal antibody targeting CD40-ligand (CD40L or CD154) being developed for the prevention of allograft rejection and for the treatment of autoimmune diseases. Tonix also has product candidates in development in the areas of rare disease, including TNX-2900 for Prader-Willi syndrome, and infectious disease, including a vaccine for mpox, TNX-801. Tonix recently announced a contract with the U.S. DoD’s Defense Threat Reduction Agency (DTRA) for up to $34 million over five years to develop TNX-4200, small molecule broad-spectrum antiviral agents targeting CD45 for the prevention or treatment of infections to improve the medical readiness of military personnel in biological threat environments. Tonix owns and operates a state-of-the art infectious disease research facility in Frederick, MD. Tonix Medicines, our commercial subsidiary, markets Zembrace® SymTouch® (sumatriptan injection) 3 mg and Tosymra® (sumatriptan nasal spray) 10 mg for the treatment of acute migraine with or without aura in adults.

* Tonix’s product development candidates are investigational new drugs or biologics; their efficacy and safety have not been established and have not been approved for any indication.
Zembrace SymTouch and Tosymra are registered trademarks of Tonix Medicines. All other marks are property of their respective owners.

This press release and further information about Tonix can be found at www.tonixpharma.com.

Forward Looking Statements
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. These forward-looking statements are based on Tonix’s current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks related to the failure to obtain FDA clearances or approvals and noncompliance with FDA regulations; risks related to the failure to successfully market any of our products; risks related to the timing and progress of clinical development of our product candidates; our need for additional financing; uncertainties of patent protection and litigation; uncertainties of government or third party payor reimbursement; limited research and development efforts and dependence upon third parties; and substantial competition. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. Tonix does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024, and periodic reports filed with the SEC on or after the date thereof. All of Tonix’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date thereof.

Investor Contact
Jessica Morris
Tonix Pharmaceuticals
investor.relations@tonixpharma.com
(862) 904-8182

Peter Vozzo
ICR Westwicke
peter.vozzo@westwicke.com
(443) 213-0505

Media Contact
Ray Jordan
Putnam Insights
ray@putnaminsights.com
(949) 245-5432

Primary Logo

Source: Tonix Pharmaceuticals Holding Corp.

Released October 17, 2024

Release – ZyVersa Therapeutics CEO, Stephen C. Glover, Issues Letter to Shareholders Highlighting Obesity Development Plans for Inflammasome ASC Inhibitor IC 100 Over the Next Nine Months

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ZVSA

Oct 17, 2024

PDF Version

  • Lead indication for ZyVersa’s Inflammasome ASC Inhibitor IC 100 is obesity with metabolic complications.

WESTON, Fla., Oct. 17, 2024 (GLOBE NEWSWIRE) — ZyVersa Therapeutics, Inc. (Nasdaq: ZVSA, or “ZyVersa”), a clinical stage specialty biopharmaceutical company developing first-in-class drugs for treatment of inflammatory and renal diseases, announces that Stephen C. Glover, Co-Founder, Chairman, Chief Executive Officer, and President, has issued a Letter to Shareholders highlighting obesity development plans for Inflammasome ASC Inhibitor IC 100 with anticipated milestones over the next nine months. The full text of the letter follows.

A MESSAGE FROM OUR PRESIDENT AND CHIEF EXECUTIVE OFFICER

To my fellow shareholders,

As announced in late July, ZyVersa selected obesity with metabolic complications as the lead indication for Inflammasome ASC Inhibitor IC 100. Selection of this indication is consistent with our mission to restore health and transform patient lives through innovation. Although GLP-1 agonist therapy has changed the treatment paradigm for obesity with unsurpassed weight loss, significant unmet medical needs remain. A critical unmet need is for therapies to address the chronic systemic inflammation of obesity that causes life-altering metabolic comorbidities such as cardiovascular diseases, type 2 diabetes, non-alcoholic fatty liver disease, and even neurodegenerative diseases such as Parkinson’s and Alzheimer’s diseases. Based on IC 100’s highly differentiated mechanism of action, it is anticipated that IC 100 will control the chronic systemic inflammation of obesity, attenuate development and/or progression of associated metabolic comorbidities, and augment weight loss when added to GLP-1 agonist therapy.

Selection of obesity with metabolic complications as the lead indication for IC 100 is also consistent with ZyVersa’s goal to drive shareholder value. The obesity drug revolution has led to a 10-fold increase in private venture dollars flowing into the category over the last 5 years and high deal volume. This is expected to continue with investment opportunities in R&D innovation to develop GLP-1 agonist add-on therapies to address unmet needs. This is exemplified by some of the latest transactions:

  • Oct 10, 2024: Lilly announced up to $1.4 billion plus upfront payment and royalties for expanded collaboration with KeyBioscience for rights to dual amylin calcitonin receptor agonists for obesity and complications (e.g., osteoarthritis).
  • September 25, 2024: Bioage announced an upsized $198 Million IPO driven by their APJ agonist in development for muscle preservation and improved metabolism to be used in combination with GLP-1 agonist therapy.
  • September 23, 2024: Sanofi announced a $27 Million strategic investment in Ventyx Biosciences’ NLRP3 inhibitor VTX3232, which is phase 2 for obesity with cardiovascular complications and Parkinson’s disease.
  • September 4, 2024: Lilly announced a collaboration with Haya Therapeutics for up to $1 Billion for drug discovery in obesity and related metabolic conditions.
  • August 10, 2024: Novo Nordisk announced acquisition of Inversago Pharma, valued up to $1.075 Billion. Inversago develops CB1 receptor-based therapies for obesity, diabetes, and complications associated with metabolic disorders.

We are excited about the potential for Inflammasome ASC Inhibitor IC 100 as an add-on therapy to GLP-1 agonists to help restore health and transform the lives of patients living with obesity and its associated comorbidities. We recently reviewed the preclinical data supporting IC 100 with our newly formed Obesity, Metabolic, and Inflammatory Disease Scientific Advisory Board. Advisory Board members indicated that IC 100’s mechanism of action supports its rationale for use as an add-on treatment to GLP-1 agonists to address the chronic inflammation of obesity and its associated metabolic complications. They also provided excellent input on our planned DIO obesity model studies to strengthen their design and endpoints for proof-of-concept of IC 100’s potential as a treatment for obesity with metabolic complications.

Following are key IC 100 short-term obesity development milestones that we expect to achieve:

Q4-2024: Initiate IC 100 monotherapy study using semaglutide as a comparator in DIO mice.

Q1- 2025: Initiate IC 100 combination study with semaglutide in DIO mice.

Q2-2025: File IND.

Q3-2025: Initiate IC 100 phase 1 trial in healthy overweight subjects with a BMI 27 – 30.

We appreciate your current and ongoing support that enables us to progress IC 100’s development program to drive shareholder value.

About Inflammasome ASC Inhibitor IC 100

IC 100 is a novel humanized IgG4 monoclonal antibody that inhibits the inflammasome adaptor protein ASC. IC 100 was designed to attenuate both initiation and perpetuation of the inflammatory response. It does so by binding to a specific region of the ASC component of multiple types of inflammasomes, including NLRP1, NLRP2, NLRP3, NLRC4, AIM2, and Pyrin. Intracellularly, IC 100 binds to ASC monomers, inhibiting inflammasome formation, thereby blocking activation of IL-1β early in the inflammatory cascade. IC 100 also binds to ASC in ASC Specks, both intracellularly and extracellularly, further blocking activation of IL-1β and the perpetuation of the inflammatory response that is pathogenic in inflammatory diseases. Because active cytokines amplify adaptive immunity through various mechanisms, IC 100, by attenuating cytokine activation, also attenuates the adaptive immune response. The lead indication for IC 100 is obesity and its associated metabolic complications. To review a white paper summarizing the mechanism of action and preclinical data for IC 100, Click Here.

About ZyVersa Therapeutics, Inc.

ZyVersa (Nasdaq: ZVSA) is a clinical stage specialty biopharmaceutical company leveraging advanced proprietary technologies to develop first-in-class drugs for patients with inflammatory or kidney diseases with high unmet medical needs. We are well positioned in the rapidly emerging inflammasome space with a highly differentiated monoclonal antibody, Inflammasome ASC Inhibitor IC 100, and in kidney disease with phase 2 Cholesterol Efflux Mediator™ VAR 200. The lead indication for IC 100 is obesity and its associated metabolic complications, and for VAR 200, focal segmental glomerulosclerosis (FSGS). Each therapeutic area offers a “pipeline within a product,” with potential for numerous indications. The total accessible market is over $100 billion. For more information, please visit www.zyversa.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These include statements regarding management’s intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. ZyVersa Therapeutics, Inc (“ZyVersa”) uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions. Such forward-looking statements are based on ZyVersa’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors, including ZyVersa’s plans to develop and commercialize its product candidates, the timing of initiation of ZyVersa’s planned preclinical and clinical trials; the timing of the availability of data from ZyVersa’s preclinical and clinical trials; the timing of any planned investigational new drug application or new drug application; ZyVersa’s plans to research, develop, and commercialize its current and future product candidates; the clinical utility, potential benefits and market acceptance of ZyVersa’s product candidates; ZyVersa’s commercialization, marketing and manufacturing capabilities and strategy; ZyVersa’s ability to protect its intellectual property position; and ZyVersa’s estimates regarding future revenue, expenses, capital requirements and need for additional financing.

New factors emerge from time-to-time, and it is not possible for ZyVersa to predict all such factors, nor can ZyVersa assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Forward-looking statements included in this press release are based on information available to ZyVersa as of the date of this press release. ZyVersa disclaims any obligation to update such forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

Corporate, Media, and IR Contact:
Karen Cashmere
Chief Commercial Officer
kcashmere@zyversa.com
786-251-9641      

Release – Ocugen to Host Conference Call on Friday, November 8 at 8:30 A.M. ET to Discuss Business Updates and Third Quarter 2024 Financial Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on OCGN

October 17, 2024

MALVERN, Pa., Oct. 17, 2024 (GLOBE NEWSWIRE) — Ocugen, Inc. (Ocugen or the Company) (NASDAQ: OCGN), a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies, biologics, and vaccines, today announced that it will host a conference call and live webcast to discuss the Company’s third quarter 2024 financial results and provide a business update at 8:30 a.m. ET on Friday, November 8, 2024.

Ocugen will issue a pre-market earnings announcement on the same day. Attendees are invited to participate on the call using the following details:

Dial-in Numbers: (800) 715-9871 for U.S. callers and (646) 307-1963 for international callers
Conference ID: 9923172
Webcast: Available on the events section of the Ocugen investor site

A replay of the call and archived webcast will be available for approximately 45 days following the event on the Ocugen investor site.

About Ocugen, Inc.
Ocugen, Inc. is a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies, biologics, and vaccines that improve health and offer hope for patients across the globe. We are making an impact on patient’s lives through courageous innovation—forging new scientific paths that harness our unique intellectual and human capital. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with a single product, and we are advancing research in infectious diseases to support public health and orthopedic diseases to address unmet medical needs. Discover more at www.ocugen.com and follow us on X and LinkedIn.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from our current expectations. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release.

Contact:
Tiffany Hamilton
Head of Communications
Tiffany.Hamilton@ocugen.com

Zuora Agrees to $1.7 Billion Acquisition by Silver Lake and GIC, Becoming a Private Company

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Zuora will be acquired for $1.7 billion by Silver Lake and GIC.
– Zuora stockholders will receive $10.00 per share in cash.
– The acquisition will help Zuora continue its growth as a private company.

Zuora, Inc., a leading monetization platform for modern businesses, has announced that it has entered into a definitive agreement to be acquired by global investment giant Silver Lake and GIC Pte. Ltd., in a transaction valued at $1.7 billion. Under the agreement, Silver Lake and GIC will purchase all of Zuora’s outstanding shares for $10.00 per share in cash. This purchase price represents an 18% premium to Zuora’s unaffected closing stock price.

This acquisition marks a major milestone in Zuora’s growth strategy, with the company becoming a privately held organization once the deal is finalized. As Zuora transitions away from being publicly listed, the company looks forward to leveraging the support and expertise of Silver Lake and GIC to strengthen its position as a leader in monetization solutions, enabling businesses to manage and grow recurring revenue models.

Tien Tzuo, Zuora’s Founder, CEO, and Chairman of the Board, expressed his enthusiasm for the deal, stating, “As a private company, with the support of Silver Lake and GIC, our monetization suite will continue to lead in the marketplace. We look forward to entering this next phase of growth alongside Silver Lake, GIC, and our team of ZEOs.”

The acquisition follows a thorough review process led by a special committee of independent directors, who explored strategic alternatives to maximize shareholder value. Ultimately, the Silver Lake and GIC proposal stood out as the best risk-adjusted offer, leading to the unanimous approval from the Zuora Board of Directors. According to Jason Pressman, Chair of the Special Committee, “We are pleased to have reached an agreement that delivers significant, immediate, and certain value to Zuora’s stockholders.”

Silver Lake and GIC expressed their confidence in Zuora’s leadership and market position. Joe Osnoss, Managing Partner at Silver Lake, and Mike Widmann, Managing Director at Silver Lake, praised Zuora’s ability to power monetization strategies for more than 1,000 customers worldwide. They believe the investment will further enhance Zuora’s growth and innovation in enabling subscription-based business models.

Zuora has established itself as a key player in the Subscription Economy, helping companies shift to more complex revenue models. The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approvals and shareholder approval. Upon completion, Zuora’s stock will no longer be publicly traded, and Tien Tzuo will continue to lead the company in its next phase as a private entity.

Tonix Pharmaceuticals (TNXP) – NDA Filing Submission For Tonmya Beats Expected Timeframe

Posted on by cpereira@noblefcm.com


Thursday, October 17, 2024

Tonix is a clinical-stage biopharmaceutical company focused on discovering, licensing, acquiring and developing therapeutics and diagnostics to treat and prevent human disease and alleviate suffering. Tonix’s portfolio is composed of immunology, rare disease, infectious disease, and central nervous system (CNS) product candidates. Tonix’s immunology portfolio includes biologics to address organ transplant rejection, autoimmunity and cancer, including TNX-15001 which is a humanized monoclonal antibody targeting CD40-ligand being developed for the prevention of allograft and xenograft rejection and for the treatment of autoimmune diseases. A Phase 1 study of TNX-1500 is expected to be initiated in the second half of 2022. Tonix’s rare disease portfolio includes TNX-29002 for the treatment of Prader-Willi syndrome. TNX-2900 has been granted Orphan-Drug Designation by the FDA. Tonix’s infectious disease pipeline includes a vaccine in development to prevent smallpox and monkeypox called TNX-8013, next-generation vaccines to prevent COVID-19, and an antiviral to treat COVID-19. Tonix’s lead vaccine candidates for COVID-19 are TNX-1840 and TNX-18504, which are live virus vaccines based on Tonix’s recombinant pox vaccine (RPV) platform. TNX-35005 (sangivamycin, i.v. solution) is a small molecule antiviral drug to treat acute COVID-19 and is in the pre-IND stage of development. TNX-102 SL6, (cyclobenzaprine HCl sublingual tablets), is a small molecule drug being developed to treat Long COVID, a chronic post-acute COVID-19 condition. Tonix expects to initiate a Phase 2 study in Long COVID in the second quarter of 2022. The Company’s CNS portfolio includes both small molecules and biologics to treat pain, neurologic, psychiatric and addiction conditions. Tonix’s lead CNS candidate, TNX-102 SL, is in mid-Phase 3 development for the management of fibromyalgia with a new Phase 3 study launched in the second quarter of 2022. Finally, TNX-13007 is a biologic designed to treat cocaine intoxication that is expected to start a Phase 2 trial in the second quarter of 2022. TNX-1300 has been granted Breakthrough Therapy Designation by the FDA.

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

NDA Submission Starts The FDA Review Clock. Tonix announced that it has submitted the New Drug Application (NDA) for Tonmya, its proprietary formulation of cyclobenzaprine hydrochloride for treating fibromyalgia. As discussed in our Research Note on October 11, this is slightly ahead of our expected timeframe of late October.

NDA Acceptance May Be Received Before YE2024. The FDA usually conducts a preliminary evaluation to determine if an application is complete and meets requirements for its full review. An “acceptance for filing” notification is usually made within 60 days of the submission, with the FDA’s statutory date for completing the review under the Prescription Drug User Fee Act (known as the PDUFA date). The standard 10-month review would imply a PDUFA date around August 2025.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Comtech Telecommunications (CMTL) – NT 10-K, Fourth Quarter Challenged

Posted on by cpereira@noblefcm.com


Thursday, October 17, 2024

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

NT 10-K. Yesterday, after the market close, Comtech filed with the Securities & Exchange Commission a Form 12b-25 disclosing the Company will not be filing its 10-K annual statement in a timely manner. In addition, management noted it anticipates a significant change in its fiscal 2024 GAAP results, primarily due to lower-than-expected performance during its fiscal fourth quarter.

4Q24 Performance. According to the filing, the Company anticipates a significant change in its fiscal 2024 GAAP results of operations, as compared to fiscal 2023, primarily due to lower-than-expected performance during its fourth quarter of fiscal 2024 in its Satellite and Space Communications segment, including non-cash impairment charges related to goodwill associated with the segment and long-lived assets pertaining to its steerable antenna operations located in the United Kingdom. The aggregate non-cash impairment charge is estimated to range between $60.0 million and $70.0 million.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.