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Release – ACCO Brands Reports Third Quarter Results

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data for ACCO

  • Reported net sales of $421 million at the mid-point of outlook
  • Earnings per share of $0.09; adjusted EPS of $0.23
  • On track to achieve over $20 million in cost savings for the full year 2024 through a multi-year cost savings program
  • Net operating cash flow improved by $25 million
  • Reduced consolidated leverage ratio to 3.5x at quarter-end
  • Maintaining 2024 outlook for sales, adjusted EPS and cash flow
  • Refinanced the credit facilities, extending the maturity date to 2029

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today reported financial results for its third quarter and nine months ended September 30, 2024.

“We are pleased to report third quarter results that were in line with our expectations, with overall sales trends improving in the third quarter compared to the first half of the year. We continue to make progress on our cost reduction and infrastructure initiatives, which allowed us to deliver another quarter of improved gross margin and cash flow. Our robust cash flow enabled us to reduce debt and return capital to shareholders through dividends and share repurchases. We ended the quarter with a lower leverage ratio than the prior year and successfully refinanced our credit facilities. We now have no significant debt maturities until 2029,” stated ACCO Brands’ President and Chief Executive Officer, Tom Tedford.

“We’re advancing our strategy as we continue to improve our innovation and new product development processes, expand into new points of distribution and extend our product offering into adjacent categories. In addition, given our improved balance sheet and strong cash flow, we are able to consider potential acquisitions. These initiatives, combined with our $60 million multi-year cost reduction program, are strengthening our competitive position,” concluded Mr. Tedford.

Third Quarter Results

Net sales were $420.9 million, down 6.0 percent from $448.0 million in 2023. Adverse foreign exchange reduced sales by $4.4 million, or 1.0 percent. Comparable sales decreased 5.0 percent. Both reported and comparable sales declines reflect softer back-to-school purchases by our customers in Latin America and North America. Additionally, global demand was weaker for certain office-related products. The exit of lower margin business in North America accounted for approximately 2.0 percent of the decline. These declines were partially offset by growth in the technology accessories categories.

Operating income was $26.3 million versus operating income of $32.2 million in 2023. Restructuring expense was $6.7 million versus $3.0 million in the prior year. Adjusted operating income was $44.7 million, down from $46.0 million in 2023. Both reported and adjusted operating income declines reflect lower sales volume, which was partially offset by cost reduction initiatives and lower incentive compensation expense.

Net income was $9.3 million, or $0.09 per share, compared with prior-year net income of $14.9 million, or $0.15 per share, in 2023. Adjusted net income was $22.5 million compared with $23.1 million in 2023, and adjusted earnings per share were $0.23 per share compared to $0.24 per share in the prior year.

Business Segment Results

ACCO Brands Americas – Third quarter segment net sales of $259.1 million decreased 8.9 percent from $284.4 million in the prior year. Adverse foreign exchange, primarily in Brazil and Mexico, reduced sales by 2.3 percent. Comparable sales were $265.5 million, down 6.6 percent versus the prior year. Both reported and comparable sales decreases were attributable to moderating demand trends in Latin America and lower replenishment for back-to-school products in North America. The exit of lower margin business accounted for approximately 3.0 percent of the decline. These declines were partially offset by growth in the technology accessories categories.

Third quarter operating income was $25.9 million versus operating income of $33.8 million a year earlier. Restructuring expense was $3.4 million in 2024. Adjusted operating income was $36.7 million, down from $40.0 million in the prior year. Both reported and adjusted operating income declines reflect lower sales volume, partially offset by cost reduction initiatives and lower incentive compensation expense.

ACCO Brands International – Third quarter segment net sales of $161.8 million decreased 1.1 percent from $163.6 million in the prior year. Favorable foreign exchange increased sales by 1.2 percent. Comparable sales were $159.8 million, down 2.3 percent versus the prior year. Both reported and comparable sales declines reflect reduced demand for certain office products, partially offset by growth in the technology accessories categories and the benefit of price increases.

Third quarter operating income was $9.5 million, an increase from $9.4 million in the prior year, with adjusted operating income of $17.1 million compared with $17.0 million in the prior year. The improvement reflects the benefit of cost reduction actions offsetting the impact of lower sales volume.

Nine Month Results

Net sales were $1,218.1 million down 9.4 percent from $1,344.2 million in 2023. Adverse foreign exchange reduced sales by $7.4 million, or 0.6 percent. Comparable sales decreased 8.8 percent. Both reported and comparable sales declines reflect softer global consumer and business demand for certain product categories, and our exit of lower margin business in North America, which accounted for approximately 3.0 percent of the decline.

Operating loss was $79.0 million versus operating income of $97.5 million in 2023, primarily due to non-cash impairment charges of $165.2 million related to goodwill and intangible assets within the Americas segment. Adjusted operating income was $125.5 million, down from $136.5 million in 2023. Both reported and adjusted operating income (loss) declines reflect lower sales volume, partially offset by improved product mix, cost reduction initiatives and lower incentive compensation expense.

Net loss was $122.2 million, or $(1.27) per share, compared with a net income of $37.6 million, or $0.39 per share, in 2023, primarily due to the non-cash impairment charges of $165.2 million related to goodwill and intangible assets and changes in discrete tax items. Adjusted net income was $61.7 million compared with $68.1 million in 2023, and adjusted earnings per share were $0.63 per share compared with $0.70 per share in 2023.

Capital Allocation

Year to date, the Company improved its operating cash flow to $95.5 million versus a cash flow of $70.7 million in the prior year, driven primarily by working capital management. The Company’s consolidated leverage ratio as of September 30, 2024 was 3.5x down from 3.8x at the end of the prior-year third quarter.

In the third quarter, the Company repurchased 2.4 million shares for $12.5 million

On October 25, 2024, ACCO Brands announced that its board of directors declared a regular quarterly cash dividend of $0.075 per share. The dividend will be paid on December 11, 2024 to stockholders of record at the close of business on November 15, 2024. At the current stock price, on an annualized basis, our shareholders are receiving an approximate 6 percent yield on their investment.

Bank Refinancing

Effective October 30, 2024, the Company extended the maturity of its credit facilities to 2029.

Full Year 2024 Outlook

The Company is reaffirming its full year 2024 outlook. For the full year, the Company expects reported sales to be down in the range of 8.0% to 9.0%. Full year adjusted EPS is expected to be within a range of $1.04 to $1.09. The Company expects 2024 free cash flow of approximately $130 million with a consolidated leverage ratio decreasing to approximately 3.2x at year-end.

“As we approach year-end and look ahead to next year, our cost reduction actions should allow us the ability to maintain our solid margins, contain expenses and generate strong cash flow. I remain confident in our team’s ability to continue to successfully execute on our $60 million multi-year cost reduction program. The progress we have made reducing debt will enable us to invest in the future,” concluded Mr. Tedford.

Webcast

At 8:30 a.m. ET on November 1, 2024, ACCO Brands Corporation will host a conference call to discuss the Company’s third quarter 2024 results. The call will be broadcast live via webcast. The webcast can be accessed through the Investor Relations section of www.accobrands.com. The webcast will be in listen-only mode and will be available for replay following the event.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, and play. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Non-GAAP Financial Measures

In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this earnings release to aid investors in understanding the Company’s performance. Each non-GAAP financial measure is defined and reconciled to its most directly comparable GAAP financial measure in the “About Non-GAAP Financial Measures” section of this earnings release.

Forward-Looking Statements

Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, and those relating to cost reductions and anticipated pre-tax savings and restructuring costs are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Forward-looking statements are subject to the occurrence of events outside the Company’s control and actual results and the timing of events may differ materially from those suggested or implied by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements when deciding whether to buy, sell or hold the Company’s securities.

Our outlook is based on certain assumptions which we believe to be reasonable under the circumstances. These include, without limitation, assumptions regarding the impact of inflation and global geopolitical and economic uncertainties and fluctuations in foreign currency exchange rates; and the other factors described below.

Among the factors that could cause our actual results to differ materially from our forward-looking statements are: a limited number of large customers account for a significant percentage of our sales; sales of our products are affected by general economic and business conditions globally and in the countries in which we operate; risks associated with foreign currency exchange rate fluctuations; challenges related to the highly competitive business environment in which we operate; our ability to develop and market innovative products that meet consumer demands and to expand into new and adjacent product categories that are experiencing higher growth rates; the long-term impacts of the COVID-19 pandemic; our ability to successfully expand our business in emerging markets and the exposure to greater financial, operational, regulatory, compliance and other risks in such markets; the continued decline in the use of certain of our products; risks associated with seasonality, the sufficiency of investment returns on pension assets, risks related to actuarial assumptions, changes in government regulations and changes in the unfunded liabilities of a multi-employer pension plan; any impairment of our intangible assets; our ability to secure, protect and maintain our intellectual property rights, and our ability to license rights from major gaming console makers and video game publishers to support our gaming accessories business; our ability to successfully execute our multi-year restructuring and cost savings program and realize the anticipated benefits; continued disruptions in the global supply chain; risks associated with inflation and other changes in the cost or availability of raw materials, transportation, labor, and other necessary supplies and services and the cost of finished goods; risks associated with outsourcing production of certain of our products, information technology systems and other administrative functions; the failure, inadequacy or interruption of our information technology systems or its supporting infrastructure; risks associated with a cybersecurity incident or information security breach, including that related to a disclosure of personally identifiable information; our ability to grow profitably through acquisitions, and successfully integrate them; risks associated with our indebtedness, including limitations imposed by restrictive covenants, our debt service obligations, and our ability to comply with financial ratios and tests; a change in or discontinuance of our stock repurchase program or the payment of dividends; product liability claims, recalls or regulatory actions; the impact of litigation or other legal proceedings; the impact of additional tax liabilities stemming from our global operations and changes in tax laws, regulations and tax rates; our failure to comply with applicable laws, rules and regulations and self-regulatory requirements, the costs of compliance and the impact of changes in such laws; our ability to attract and retain qualified personnel; the volatility of our stock price; risks associated with circumstances outside our control, including those caused by telecommunication failures, labor strikes, power and/or water shortages, public health crises, such as the occurrence of contagious diseases, severe weather events, war, terrorism and other geopolitical incidents; and other risks and uncertainties described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and in other reports we file with the Securities and Exchange Commission.

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NN, Inc. (NNBR) – Accelerating on its Transformation

Posted on by cpereira@noblefcm.com


Friday, November 01, 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.

Adjusted Results. Adjusted net loss during the quarter was $2.5 million, or $0.05 per share compared to adjusted net income of $0.1 million or $0.01 last year. Adjusted EBITDA was $11.6 million, or a margin of 10.2%, compared to last year’s $14.5 million or 11.6%. Both items were impacted by the Company’s rationalization of plants undergoing turnarounds and the sale of the Lubbock plastic plant operations.

Accelerated Transformation. Management has been accelerating its transformation initiatives, as the Company continues to win business, nearing the lower end of guidance for the year, and is continuously undergoing cost reduction, including $2 million in annualized cost savings enacted in the third quarter. New business wins bring over higher margins for NN at over 20% compared to the legacy business at around 11%, providing higher gross margins overtime as legacy contracts become more offset.


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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. 

Haynes International (HAYN) – Lowering Estimates to Reflect Anticipated Negative Revenue Impact of Boeing Strike

Posted on by cpereira@noblefcm.com


Friday, November 01, 2024

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Boeing strike. In fiscal year 2023 and for the first nine months of fiscal 2024, aerospace represented 49% and 51% of Haynes’ net revenue. A significant portion of the company’s aerospace sales are dependent on the number of aircraft built by The Boeing Company and Airbus. On September 13, Boeing union members went on strike after rejecting a contract proposal from the company. Boeing has extended a pause on component shipments for several of its programs. While we are hopeful that the strike will be resolved soon, we expect it to have a negative impact on Haynes’ fourth quarter of fiscal year 2024 which ended September 30 and the first quarter of fiscal year 2025 which ends on December 31, 2024. Seasonally, the first quarter of the fiscal year is generally the company’s weakest.

Updating estimates. We have lowered our 2024 EBITDA and EPS estimates to $67.4 million and $2.46, respectively, from $68.5 million and $2.52. The revisions reflect weaker demand in the aerospace segment and lower sales expectations for the fourth quarter. Our expectations for weaker demand extend into fiscal year 2025, and we have lowered our EBITDA and EPS estimates to $82.5 million and $3.35, respectively, from $99.5 million and $4.15. Our revisions reflect lower shipment, revenue, and margin expectations, particularly during the first half of the year.


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. 

Eledon Pharmaceuticals (ELDN) – Islet Cell Transplant Results Are A Breakthrough For Diabetes

Posted on by cpereira@noblefcm.com


Friday, November 01, 2024

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.

Islet Cell Transplant Patients Achieve Insulin Independence. A clinical study using tegoprubart as an immunosuppressant in islet cell transplantation was presented at a medical meeting on Tuesday, October 29, 2024. The first two subjects receiving islet cell transplants with tegoprubart as an immunosuppressant were able to regulate their blood glucose and achieve insulin independence. We see this as a significant advance that could enable islet cell transplantation to become a treatment for diabetes.

Tegoprubart Prevented The Toxicities That Have Led To Failure. Previous attempts to transplant healthy islet cells to restore insulin production have been unsuccessful. This is partly due to side effects of tacrolimus, the immunosuppression drug that is effective but toxic to the kidney and islet cells. This trial used tegoprubart instead of tacrolimus, resulting in islet cells surviving, engrafting, and producing insulin at effective levels.


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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. 

ACCO Brands (ACCO) – 3Q24 First Look

Posted on by cpereira@noblefcm.com


Friday, November 01, 2024

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

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.

3Q24. ACCO is beginning to see the fruits of its cost reduction and infrastructure initiatives with 3Q24 results in line with expectations and overall sales trends improving in the third quarter compared to the first half of the year. Gross margin expanded by 20 basis points-the seventh consecutive quarter of improvement-and SG&A costs were down 7% y-o-y. 

Details. Revenue of $420.9 million was down 6% on a reported basis y-o-y, with comp sales off 5%, reflecting softer back-to-school demand as well as for certain office products, although technology accessories saw growth. We had projected revenue of $418 million. Reported operating income was $26.3 million. Adjusted operating income was $44.7 million, down from $46 million in 3Q23. GAAP net income was $9.3 million, or $0.09/sh, with adjusted net income of $22.5 million, or $0.23/sh. In 3Q23, ACCO reported net income of $14.9 million, or $0.15/sh, and adjusted net income of $23.1 million, or $0.24/sh. We were at $0.15/sh and $0.24/sh, respectively. 


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. 

October Jobs Report Reveals Sharp Slowdown Amid Strikes and Weather Impacts

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– October saw a low 12,000 jobs added, largely due to strikes and weather impacts.
– Unemployment remained at 4.1%, while wage growth rose to 4.1% year-over-year.
– Fed rate cut likelihood increased to 99% following this report.

The US labor market added only 12,000 jobs in October, significantly below the anticipated 100,000, according to the Bureau of Labor Statistics (BLS). This marked a sharp slowdown from September’s revised 223,000 job gain and reflected several temporary pressures, including a Boeing worker strike and recent hurricanes. However, the unemployment rate held steady at 4.1%, as the BLS noted that different data collection methods account for the varying indicators.

Manufacturing saw the biggest impact, with a 46,000 job decline largely attributed to the strike, while weather disruptions affected employment across multiple industries. Wage growth, a critical measure for inflation, rose to 4.1% on an annual basis, up from September’s 4%. On a monthly basis, wages grew 0.4%, also slightly above expectations. Labor force participation slipped to 62.6%, down from 62.7% the previous month.

This jobs report also comes as a pivotal data point for the Federal Reserve’s upcoming decision on interest rates, scheduled for Nov. 7. Market predictions now put a 99% likelihood on a 25-basis-point rate cut, up from a 95% chance before the report’s release. However, the Fed may focus on broader trends showing the labor market’s gradual cooling beyond these temporary effects. Recent BLS data from September also indicated declining job openings and a reduced quits rate, signaling lower worker confidence and easing hiring pressures.

Economists believe the October job numbers, while unusually low, reflect temporary factors rather than underlying economic weakness. Joe Brusuelas, chief economist at RSM, suggested ignoring the low job addition figure and focusing on the consistent 4.1% unemployment rate as a more stable indicator of labor market conditions. Carson Group’s global macro strategist, Sonu Varghese, noted that this cooling labor market trend aligns with the Fed’s interest rate cut trajectory for November and December.

1·800·Flowers.com, Inc. (FLWS) – A Slow Start, But On Track Toward Growth

Posted on by cpereira@noblefcm.com


Friday, November 01, 2024

For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

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

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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

Q1 results. The company reported Q1 revenue of $242.1 million, 3% lower than our estimate of $249.7 million. Adj. EBITDA loss of $27.9 million was below our estimate of negative $23.5 million. The lackluster results were partially attributed to roughly $3 million in wholesale revenue being pushed into Q2. A bright spot in Q1 was the effective management of input costs, which contributed to a gross margin improvement of 20 basis points from the prior year period.

Positioned for revenue growth. In our view, the company is positioned to benefit from several favorable developments, including expanded product offerings, a growing same-day delivery footprint and effective cost management of input prices. We believe that revenue trends should improve in coming quarters as inflation trends moderate and the general economy improves. 


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. 

Microsoft Stock Drops as AI Spending Weighs on Profits Amid Slower Cloud Growth

Posted on by slightbourne@noblecapitalmarkets.com
Key Points
– Microsoft stock drops over 5% following a cautious Q2 forecast, marking its worst one-day fall in two years.
– Rising AI and cloud investments contribute to a 50% surge in property and equipment spending, raising profitability concerns.
– Azure’s growth slows amid supply chain delays, as Microsoft continues aggressive AI investment with OpenAI.

Microsoft’s shares plummeted over 5% on Thursday following a quarterly forecast that fell short of Wall Street’s expectations, marking its steepest drop since October 2022. Despite better-than-anticipated revenue and earnings for the recent quarter, the software giant’s guidance for the December period led investors to re-evaluate the impact of high spending on artificial intelligence (AI) and cloud infrastructure.

The tech giant reported a 16% revenue increase year-over-year, reaching $65.59 billion, beating the $64.51 billion estimate. Earnings per share also exceeded predictions, landing at $3.30 against an expected $3.10. Net income rose to $24.67 billion, up from $22.29 billion in the same quarter the previous year, indicating robust performance in core business areas, particularly in cloud services.

However, Microsoft’s forecast for its December quarter revenue—projected between $68.1 billion and $69.1 billion—fell slightly below analysts’ expectations of $69.83 billion. While these numbers imply a 10.6% growth in revenue, the miss signals potential challenges ahead as AI and cloud infrastructure investments weigh heavily on profitability. Microsoft’s Azure cloud platform saw a 33% growth this quarter, yet growth projections for the next quarter suggest a slight deceleration, expected between 31% and 32%, according to CFO Amy Hood.

In comparison, Google recently reported 35% growth in its cloud division, and Amazon, the leader in cloud services, is set to release its own earnings, with analysts keenly watching its results for further insights into the competitive cloud landscape. Microsoft has continued to ramp up spending to expand its AI capabilities, particularly through its $14 billion investment in OpenAI, valued at $157 billion. The company expects a significant $1.5 billion loss on this investment in the current quarter due to substantial operational expenses.

CEO Satya Nadella acknowledged supply chain delays in data center infrastructure from external suppliers, which are likely to affect Microsoft’s ability to meet rising demand for its services this quarter. Nadella remains optimistic that these challenges will ease later in the fiscal year as supply and demand align more closely.

Microsoft’s substantial investments in AI and infrastructure have not come without financial strain. Property and equipment expenses surged 50% year-over-year to nearly $14.92 billion, surpassing analyst expectations. This hike reflects Microsoft’s commitment to maintaining a competitive edge in AI and cloud services but also raises questions regarding the sustainability of such high spending levels.

Analysts from BofA Global Research still advise buying Microsoft stock despite the conservative outlook, suggesting that the firm’s core growth engines, like Azure and Office, remain solid. However, they note that the significant AI infrastructure spending may weigh on short-term profitability. Meanwhile, Microsoft’s shares, which were up 9% for the year, trail the Nasdaq’s 21% increase year-to-date, revealing investor caution around Microsoft’s aggressive spending strategy in AI.

As the tech sector continues to pivot towards AI and cloud solutions, Microsoft’s situation exemplifies the challenges of balancing growth with heavy investment costs. While the company’s AI ambitions signal promising long-term growth, the cautious near-term outlook on profitability could lead to further stock volatility as investors navigate the risks and rewards associated with Microsoft’s AI and cloud strategy.

Fed Poised for Rate Cut After Weak October Jobs Report and Hiring Revisions

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– The Fed is on track for a 0.25% rate cut in November, with another likely in December.
– October saw only 12,000 jobs added, with hurricanes and strikes impacting hiring.
– Downward revisions for August and September reinforce a cooling labor market.

The Federal Reserve is set to move forward with an anticipated 0.25% rate cut next week, following weaker-than-expected jobs data for October. According to the Bureau of Labor Statistics, the economy added just 12,000 nonfarm payrolls last month, a sharp decline from previous months. Hurricanes Helene and Milton, along with a significant strike at Boeing, played a role in reducing hiring across multiple industries. Additionally, revised data showed downward adjustments for August and September, signaling a cooling labor market.

The October jobs report and recent revisions provide further evidence that the labor market has slowed from the high-demand levels seen in recent years. As inflation moderates, Federal Reserve officials see this as a favorable environment to begin loosening the restrictive rates they implemented to contain rising prices. The Fed lowered its benchmark rate by 0.5% in September, and it signaled intentions to cut rates gradually through the end of the year. According to Steven Blitz, Chief U.S. Economist at TS Lombard, the Fed is likely to reduce rates by a further 0.25% in both November and December, aiming for a target range between 4% and 4.25% by year-end.

Job market indicators have continued to soften, as shown in the Fed’s Beige Book, which highlighted flat economic activity across most U.S. regions since early September. Meanwhile, job openings have been steadily decreasing, suggesting that demand for new hires is easing. Although the U.S. economy expanded at an annualized 2.8% rate in Q3, driven by robust consumer spending, Fed policymakers remain cautious. Several officials have recently voiced a preference for a measured approach to further cuts, citing the mixed signals between consumer demand and labor market pressures.

The BLS reported that October’s labor market data was affected by temporary disruptions, but it could not definitively quantify the hurricanes’ impact on job additions. Even so, most policymakers and market participants agree that this report doesn’t alter the Fed’s previous position. Vanguard senior economist Josh Hirt commented that, aside from October’s numbers, the year-to-date data reflects a healthy labor market. However, with the Fed’s rate reductions expected to provide stimulus, officials remain attentive to the broader trends in economic activity and employment stability.

The Fed’s gradual approach to rate adjustments aligns with its broader economic strategy: while inflation remains a concern, the cooling labor market and job revisions provide the flexibility needed to support growth without risking excessive inflationary pressures. The Fed’s decision on November 7, just after the U.S. presidential election, will be closely watched as it marks a pivotal point in the central bank’s policy response to evolving economic conditions.

Release – Direct Digital Holdings Unifies Orange 142 and Huddled Masses to Power Client Growth in Digital Marketing and Advertising

Posted on by aweinsoff@channelchek.com

Research News and Market Data on DRCT

October 31, 2024 9:00 am EDT

The strategic merger of its buy-side businesses combines expertise and resources to expand capabilities and better serve Mid-Market & SMBs navigating the digital landscape

HOUSTON, Oct. 31, 2024 /PRNewswire/ — Direct Digital Holdings (DDH) (Nasdaq: DRCT) today announced the unification of its buy-side businesses, Orange 142 and Huddled Masses, to better serve the surging number of small and mid-sized businesses (SMBs) learning to leverage modern digital advertising. Unifying two similar companies under the Orange 142 brand allows them to share resources and operate more efficiently, providing current and future clients with a more comprehensive and integrated approach to digital marketing.

Clients increasingly allocate their marketing budgets to digital channels, turning to digital media channels to support their business’s awareness and growth goals. Utilizing a data-driven approach to buying and selling digital ads across channels offers businesses crucial benefits such as streamlined ad-buying processes, targeted audience reach, and real-time campaign adjustments, allowing for more efficient spending and effective results.

However, as SMBs delve deeper into the many channels and tactics available, they often need help navigating the complexities and maximizing their potential. To overcome these challenges, businesses require a strategic partner to provide expert guidance, support data-driven decision-making, facilitate technology adoption, and ensure accountability. By leveraging the combined strengths of Orange 142 and Huddled Masses, clients will be better equipped to harness advertising investment to drive growth, improve efficiency, and achieve their marketing goals.

As a unified team, Orange 142 is the essential technical and marketing partner for mid-market and SMBs navigating the modern digital landscape. Clients will benefit from expanded resources that enhance its digital offerings and support across critical areas, including influencer marketing and organic social media strategies. The merger also streamlines the company’s marketing solutions and digital sales services channels—from website refreshes to CRM implementations—to deliver a comprehensive suite of tools that drive business growth. Integrating digital marketing with technical services to enhance sales channels enables Orange 142’s clients to maximize their media budgets, making them work harder and more efficiently. As clients explore opportunities in emerging channels like OTT/CTV, video, social media, and retail media, Orange 142 is dedicated to empowering their success in the evolving advertising landscape.

“Our clients are often operating with limited budgets in local or regional markets and need a partner that can maximize their ROI and support their ability to test and learn with new digital channels,” said Mark Walker, CEO, Co-Founder, & Chairman of Direct Digital Holdings. “By unifying Orange 142 and Huddled Masses, we’ve expanded our team and resources, enhancing our digital offerings and support. This combined strength enables us to deliver on key growth opportunities like CTV. We’re building a buy-side business that optimizes client investments in the digital era and levels the playing field with larger competitors.”

The newly unified Orange 142 now serves hundreds of small- [TP1] and mid-sized clients, managing over 2,000 campaigns annually. Operating across all leading demand-side platforms (DSP), the company drives increased advertising ROI and reduced client acquisition costs while helping DSPs tap into previously unattained SMB revenue.

Orange 142, acquired by DDH in 2020, offers end-to-end media solutions and marketing services. Huddled Masses, acquired in 2018, advises agencies and marketers on thriving in the digital ecosystem. DDH’s two-sided business model provides a unique advantage, offering front-end, buy-side planning alongside its proprietary Colossus SSP, curating Publishers and content to deliver higher ROI execution.

Direct Digital Holdings is one of the few publicly traded Black-owned companies on Nasdaq and the only Black-owned publicly traded advertising technology firm.

About Direct Digital Holdings

Direct Digital Holdings (Nasdaq: DRCT) brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within the general market and multicultural media properties. The Company’s buy-side platform, Orange 142, delivers significant ROI for middle-market advertisers by providing data-optimized programmatic solutions for businesses in sectors ranging from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions generate billions of impressions per month across display, CTV, in-app, and other media channels.

About Orange 142

Orange 142 is a digital marketing and advertising company with offices across the US. We service marketers and agencies. We are part of Direct Digital Holding, the ninth Black-owned company to go public.

We help marketers of all sizes grow their reach and revenue through data-driven media strategies. We also partner with agencies and execute campaigns on behalf of their clients.

Our team of experts has a deep understanding of the digital landscape and the latest advertising and marketing technologies. We work closely with our clients to develop and execute custom advertising and marketing campaigns that meet specific goals.

We are committed to providing our clients with the highest level of service and transparency. We believe that open communication and collaboration are essential to the success of every advertising and marketing initiative.

Direct Digital Holdings Logo (PRNewsfoto/Direct Digital Holdings)

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SOURCE Direct Digital Holdings

Released October 31, 2024

Release – Conduent and AshBritt Team Up to Offer Disaster Recovery Services and Emergency Relief Funds to Those in Need

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CNDT

October 31, 2024

FLORHAM PARK, N.J. & DEERFIELD BEACH, Fla. — Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, and AshBritt, the nation’s leading rapid-response emergency management, logistics and disaster-response contractor, today announced a collaboration to offer emergency services and instant payments to those in need.

The new offering combines Conduent’s expertise in managing a range of payment services for public sector clients with AshBritt’s experience with various disaster recovery efforts. The companies stand ready to quickly support government agencies or other organizations that help people and communities affected by natural disasters or other crises.

As a U.S. industry leader delivering electronic payments for government services in 37 states, Conduent offers instant or digital payment capabilities to agencies and other entities. Its Rapid Assistance solution can dramatically accelerate agencies’ and non-profits’ ability to securely deliver funds to individuals in minutes, rather than in days or weeks. Conduent can also provide chip-enabled, pre-paid debit cards – helping to ensure that those affected by disasters and crises receive aid quickly regardless of their banking status.

AshBritt is an industry leader in rapid-response logistics, such as base camps and comfort stations set up in communities. These types of facilities usually become points of distribution for those affected by a disaster, and this collaboration further expands the services that can be offered. AshBritt’s senior management and technical consultants have more than 200 years of combined experience and are intimately acquainted with all facets of disaster recovery efforts, including debris removal, management, reduction, processing, recycling and disposal, as well as emergency planning, damage mitigation and risk abatement.

“This innovative new collaboration with AshBritt is a great example of how two companies can combine their unique capabilities and expertise to meet a critical need among communities nationwide,” said Wade Fairey, General Manager, Payments and Child Support Solutions at Conduent. “Many natural disasters require mass distribution of funds as quickly as possible, and Conduent has deep experience in providing secure payment solutions that offer recipients near-immediate assistance. We’re proud to play a role in helping those who need support.”

“AshBritt is a government solutions provider always looking for new and innovative methods for delivering resources and services to communities we serve after an emergency event,” said Gerardo Castillo, President, Management and Logistics at AshBritt. “This novel collaboration with Conduent, a leader in their respective industry, allows us to continue offering the clients we serve with the most effective post-emergency solutions.”

About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 55,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com.

About AshBritt
AshBritt is a national rapid-response emergency management, turn-key logistics, and disaster debris removal contractor. Since its inception in 1992, AshBritt has conducted over 500 disaster response missions and 52 special environmental projects, successfully serving more than 600 clients across the United States. The AshBritt team has been directly involved in the recovery efforts of more than 108 federally declared disasters in over 30 states, responding to major weather events, like Hurricanes Ian, Harvey, Irma, and Michael, wildfires in northern California, historic flooding in Kentucky, and mobilizing during the COVID-19 pandemic to administer more than 1 million vaccines across 20 states. Through the AshBritt Foundation, AshBritt supports communities where our team lives and works, investing more than $15 million across the U.S. Learn more at www.ashbritt.com .

Note: To receive RSS news feeds, visit www.news.conduent.com. For open commentary, industry perspectives and views, visit http://twitter.com/Conduent, http://www.linkedin.com/company/conduent or http://www.facebook.com/Conduent.

Trademarks
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

Media Contacts

Neil Franz

Conduent

neil.franz@conduent.com

+1-240-687-0127

Giles Goodburn

Conduent

ir@conduent.com

+1-203-216-3546

Melissa Perlman

AshBritt

melissa@blueivy.co

561-310-9921

Release – Comtech To Host Fourth Quarter and Fiscal Year 2024 Earnings Conference Call

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

CHANDLER, Ariz. – Oct. 31, 2024– Comtech (NASDAQ: CMTL) today announced that it will be hosting an earnings conference call at 4:30 p.m. ET today, to discuss its fourth quarter and fiscal year 2024 operating results. Individuals can access the conference call by dialing (800) 267-6316 (primary) or (203) 518-9783 (alternate) and using the conference I.D. of “Comtech.” A replay of the conference call will be available for two weeks by dialing (888) 225-1190 or (402) 220-4971. A live webcast of the call will also be available at comtech.com/investors/.

About Comtech

Comtech Telecommunications Corp. is a leading global technology company providing terrestrial and wireless network solutions, next-generation 911 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 our 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.

Forward-Looking Statements

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

PCMTL

Investor Relations

Maria Ceriello

631-962-7115

Maria.Ceriello@comtech.com

Release – Comtech Announces Leadership Updates

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

Appoints John Ratigan, Satellite Technology Veteran with Extensive Knowledge of Comtech’s Business Operations, as President and Chief Executive Officer

Appoints Kenneth H. Traub to Board of Directors, Adding Deep Experience and Expertise in Corporate Governance, Turnarounds and Strategic Transformations

CHANDLER, Ariz. – October 30, 2024– Comtech (NASDAQ: CMTL) (the “Company”), a global technology leader, today announced that its Board of Directors has appointed John Ratigan as President, Chief Executive Officer and a member of the Board, effective October 28, 2024. Mr. Ratigan has been serving as Comtech’s interim CEO since March 2024. In addition, the Comtech Board appointed Kenneth (Ken) H. Traub as an independent director to the Board, effective October 31, 2024.

Chief Executive Officer Appointment

Mr. Ratigan is an accomplished executive with over three decades of senior leadership experience and expertise in the global satellite technology sector. He joined Comtech in November 2023 as the Company’s first Chief Corporate Development Officer. Mr. Ratigan was previously CEO and President of iDirect Government, LLC, a provider of satellite communications solutions to the U.S. government, and ran East Coast operations for Fairchild Data Corporation and EF Data Corp., in both instances overseeing substantial growth and value creation.

“Over the past several months, John has been an important voice in charting Comtech’s strategy to transform into a pure-play satellite and space communications company,” said Mark Quinlan, Chair of the Comtech Board. “Under his leadership, the Company has initiated several programs designed to improve operations, including an intensive review of Comtech’s Space & Satellite Communications product portfolio to identify the most strategic and high-margin revenue opportunities. The Board is confident that John is the right leader to oversee the execution of our new strategy as we work diligently to unlock value for shareholders.”

Mr. Ratigan’s appointment as CEO follows a comprehensive process conducted by a leading executive search firm.

Mr. Ratigan said, “I am honored to serve as CEO during this important time for Comtech. When I stepped into the interim role in March, I did so with great conviction in the possibilities ahead. I saw then – and still see – great technology, great people and a tremendous opportunity. Comtech has market-leading products, a strong customer base and a compelling path to drive profitable growth in our large and growing end markets. We are acting with urgency to build a stronger, more competitive company focused on providing best-in-class satellite and space communications solutions.”

New Independent Board Director

Mr. Traub brings deep experience as a CEO, independent director, active investor and consultant to numerous companies at times of critical business transition and transformation, with a successful track record of driving strategic, operational, financial and governance improvements to protect and enhance shareholder value.

“I am thrilled to be joining the Comtech Board of Directors at this critically important time for the Company,” said Mr. Traub. “I look forward to working with the Comtech Board of Directors and management team to address current challenges and capitalize on the significant opportunities available to the Company.”

Mr. Quinlan added, “Ken is widely regarded as an expert in overseeing business transformations and has a long history of successfully guiding companies through strategic transitions that benefit shareholders. On behalf of the full Board, we welcome Ken as our newest independent director and look forward to working closely with him as we position Comtech for the future.”

About John Ratigan

Mr. Ratigan has more than 30 years of leadership experience in satellite and space communications. He has served as Comtech’s interim CEO since March 2024 after joining the Company in November 2023 as Chief Corporate Development Officer. He previously served as CEO and President of iDirect Government, LLC and as an Executive Committee Member of ST Engineering iDirect, Inc. During his tenure, he grew iDirect Government to over $100 million in annual revenue and spearheaded the acquisition of GlowLink Communications Technologies, Inc. and its unique interference mitigation technology (CSIR), which helped the company become the largest provider of Time Division Multiple Access (TDMA) SATCOM capabilities.

Earlier in his career, Mr. Ratigan ran East Coast operations for Fairchild Data Corporation and EF Data Corp., which is now a part of Comtech. During his time at EF Data, he was instrumental in helping the company grow from $20 million to $120 million in revenue in under eight years. Prior to that, Mr. Ratigan held the position of Senior Vice President of North and South American sales for the start-up BroadLogic Network Technologies, Inc. He began his career in the United States Senate working for Senator Bill Armstrong (R-Colorado) and held multiple sales positions with the Xerox Corporation as a member of the legal sales team.

Mr. Ratigan holds a Bachelor of Science in Marketing from the University of Maryland.

About Kenneth Traub

Mr. Traub has over 30 years of experience as a CEO, chairman, director, investor and consultant in public companies, with a successful track record of driving strategic, financial, operational and governance improvements to enhance shareholder value. He has served as the Managing Partner of Delta Value Advisors, a strategic consulting and investment advisory firm specializing in corporate governance and turnarounds, since 2019. He was previously Managing Partner of Raging Capital, a registered investment firm, and served as President and CEO of Ethos Management LLC, a private investment and consulting firm. Mr. Traub served as President and Chief Executive Officer of American Bank Note Holographics, Inc., a leading global supplier of optical security devices for the protection of documents and products against counterfeiting from 1999 through 2008. In 1994, he co-founded Voxware, Inc., a pioneer in voice over Internet protocol communication technologies, and served as its Executive Vice President and Chief Financial Officer through 1998.

Mr. Traub currently serves as an independent director on the boards of Tidewater, Inc., the leading global operator of offshore vessels for the energy industry, and Edgio, Inc., a software company providing digital content delivery networks and applications. Mr. Traub previously served as an independent director on the boards of numerous public companies, including DSP Group, Inc., a manufacturer of multimedia chipsets for converged communications (acquired by Synaptics Incorporated); MRV Communications, Inc., a telecommunications company (acquired by ADVA Optical Networking SE); Vitesse Semiconductor, Inc., a fabless semiconductor developer (acquired by Microsemi Corporation); Xyratex Ltd, a data storage company (acquired by Seagate Technology plc); MIPS Technologies, Inc., a semiconductor technology company (acquired by Imagination Technologies Group plc and Allied Security Trust); Intermolecular, Inc., a semiconductor materials supplier (acquired by Merck KGaA); and Phoenix Technologies, Inc., a leading supplier of firmware for computers (acquired by Marlin Equity Partners), among others.

Mr. Traub received the NACD Directorship Certification, which is awarded to directors who meet the highest standards of corporate governance according to the National Association of Corporate Directors. Mr. Traub received a Bachelor of Arts from Emory College in 1983 and an MBA from Harvard Business School in 1988.

About Comtech

Comtech Telecommunications Corp. is a leading global technology company providing satellite and space communications technologies, terrestrial and wireless network solutions, NG911 emergency services, 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 forward-looking statements. Forward-looking statements can be identified by words such as: “expect,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “potential,” “seek,” “should,” “strategy,” “will,” “would,” and similar references to future periods. Forward-looking statements include, among others, statements regarding our expectations for our operational initiatives, future performance and financial condition, 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 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 initiatives referenced 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; and other factors described in our other filings with the Securities and Exchange Commission (“SEC”). We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements. 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 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.

Important Additional Information and Where to Find It

The Company intends to file a proxy statement on Schedule 14A, an accompanying white proxy card, and other documents with the SEC in connection with its solicitation of proxies from the Company’s stockholders for the Company’s Fiscal 2024 Annual Meeting of Stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING WHITE PROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying white proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “Governance” link in the “Investors” section of the Company’s website, https://comtech.com/investors/, or by contacting investors@comtech.com as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

Participants in the Solicitation

The Company, its directors, certain of its officers, and other employees may be deemed to be “participants” (as defined in Section 14(a) of the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from the Company’s stockholders in connection with matters to be considered at the Company’s Fiscal 2024 Annual Meeting of Stockholders.

Information about the names of the Company’s directors and officers, their respective interests in the Company by security holdings or otherwise, and their respective compensation is set forth in the sections entitled “Stockholders, Directors and Executive Officers,” “Director Compensation,” and “Executive Compensation” of the Company’s Proxy Statement on Schedule 14A in connection with the Fiscal 2023 Annual Meeting of Stockholders, filed with the SEC on November 16, 2023 (available here). To the extent the security holdings of directors and executive officers have changed since the amounts described in these filings, such changes are set forth on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC, which can be found at no charge at the SEC’s website at www.sec.gov. Updated information regarding the identity of potential participants and their direct or indirect interests, by security holdings or otherwise, in the Company will be set forth in the Company’s Proxy Statement on Schedule 14A for the Fiscal 2024 Annual Meeting of Stockholders and other relevant documents to be filed with the SEC, if and when they become available. These documents will be available free of charge as described above.

Investor Relations Contact

Maria Ceriello

631-962-7102

investors@comtech.com

Media Contacts

Jamie Clegg

480-532-2523

jamie.clegg@comtech.com

Jed Repko / Aura Reinhard

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449