Category: Tech

Wednesday, April 22, 2020

One Stop Systems Inc. (OSS)

Completes $6 Million Convertible Note Raise

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

Raise. As expected, One Stop completed the previously announced $6 million senior secured convertible note raise. The raise provides OSS with additional flexibility in these challenging times. In addition to this raise, the Company has applied for government assistance under both the PPP and the Disaster Recovery programs.

Terms. At initial close, OSS will issues $3 million of Notes to the buyers at a 10% OID. The notes do not bear interest, unless the Company goes into default, at which time the interest rate would be 18%. The notes have a fixed conversion price of $2.50 for the first six months, a premium above the closing price of the Company’s common stock on Monday, April 20, 2020, after which time the fixed conversion price may reset to…






Click here to get the full report.

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. 

Tuesday, April 14, 2020

One Stop Systems Inc. (OSS)

Initiates Expense Reduction and Reorganization Plan

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

Moves to Strengthen Company: Near and Long-Term. Yesterday, OSS announced it has initiated a structural change and expense reduction plan designed to align the company’s operations and goals with current market uncertainty while positioning OSS for future growth. The company expects the program to be substantially complete in the current quarter and realize savings of $2.5 million to $3 million on an annual basis.

Reorg Plan. The major part of the reorg plan is an intensified focus on product marketing development, with the product marketing team now the hub for cross functional coordination with sales, engineering, operations, and finance. This team now will be responsible for creating additional value and customer stickiness, as well as improving margins by…






Click here to get the full report.

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. 

Tuesday, April 14, 2020

One Stop Systems Inc. (OSS)

Initiates Expense Reduction and Reorganization Plan

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

Moves to Strengthen Company: Near and Long-Term. Yesterday, OSS announced it has initiated a structural change and expense reduction plan designed to align the company’s operations and goals with current market uncertainty while positioning OSS for future growth. The company expects the program to be substantially complete in the current quarter and realize savings of $2.5 million to $3 million on an annual basis.

Reorg Plan. The major part of the reorg plan is an intensified focus on product marketing development, with the product marketing team now the hub for cross functional coordination with sales, engineering, operations, and finance. This team now will be responsible for creating additional value and customer stickiness, as well as improving margins by…






Click here to get the full report.

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. 

Friday, March 27, 2020

One Stop Systems Inc. (OSS)

Can the Good Times Continue in 2020?

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

Solid 4Q19. As advertised, OSS reported a solid 4Q with revenue up 28% to a record $18.4 million. EPS came in at $0.06 versus a loss of $0.01 in 4Q18. Adjusted EPS totaled $0.07 versus $0.09. FY19 revenue came in at $58.3 million, with organic revenue rising 12%. Gross margin improved to 33.3% from 30.6%. FY adjusted EPS was $0.14 versus $0.10 in 2018.

Coronavirus Impact. OSS’s activity and business remains solid for the most part, although the Company is monitoring some potential softening from customers, such as Disguise, that have been impacted by the virus. The government business remains a bright spot and many of the design wins from last year continue to move forward. The Company currently has 20 proposals outstanding, each valued at over…






Click here to get the full report.

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. 

Friday, March 27, 2020

One Stop Systems Inc. (OSS)

Can the Good Times Continue in 2020?

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

Solid 4Q19. As advertised, OSS reported a solid 4Q with revenue up 28% to a record $18.4 million. EPS came in at $0.06 versus a loss of $0.01 in 4Q18. Adjusted EPS totaled $0.07 versus $0.09. FY19 revenue came in at $58.3 million, with organic revenue rising 12%. Gross margin improved to 33.3% from 30.6%. FY adjusted EPS was $0.14 versus $0.10 in 2018.

Coronavirus Impact. OSS’s activity and business remains solid for the most part, although the Company is monitoring some potential softening from customers, such as Disguise, that have been impacted by the virus. The government business remains a bright spot and many of the design wins from last year continue to move forward. The Company currently has 20 proposals outstanding, each valued at over…






Click here to get the full report.

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. 

Thursday, March 12, 2020

Information Services (III)

Will the Coronavirus Impact 2020 Results?

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

Most Profitable Six Months Ever. The fourth quarter capped the most profitable six months in the Company’s history. Across the last six months of 2019, ISG generated $19.9 million of adjusted EBITDA and $9.2 million of adjusted net income, or $0.19 per diluted share.


Mix Driving Margins. 4Q adjusted EBITDA margin was nearly 15% driven by a more profitable mix of client solutions, especially digital services. RPA showed strong year-over-year growth and we expect RPA revenues to end 2020 on a…

Click to get the full report.

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. 

Thursday, March 12, 2020

Information Services (III)

Will the Coronavirus Impact 2020 Results?

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

Most Profitable Six Months Ever. The fourth quarter capped the most profitable six months in the Company’s history. Across the last six months of 2019, ISG generated $19.9 million of adjusted EBITDA and $9.2 million of adjusted net income, or $0.19 per diluted share.


Mix Driving Margins. 4Q adjusted EBITDA margin was nearly 15% driven by a more profitable mix of client solutions, especially digital services. RPA showed strong year-over-year growth and we expect RPA revenues to end 2020 on a…

Click to get the full report.

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. 

Wednesday, March 11, 2020

Information Services (III)

Solid Ending to the Year

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

4Q19 Results. Information Services reported solid 4Q19 results with revenue of $65.5 million GAAP EPS of $0.04 and adjusted EPS of $0.10 compared to $67.9 million, a GAAP loss of $0.02, and adjusted EPS of $0.05 last year. We had forecast revenue of $67 million, GAAP EPS of $0.03, and adjusted EPS of $0.08. For the full year, III had revenue of $265.7 million, GAAP EPS of $0.07, and adjusted EPS of $0.29.


Strong Cash Flow Generation. Fourth quarter CFFO was $14.6 million due to operating results and collections. This brings the full year CFFO to $20.4 million, up from $19.1 million in 2018. Adjusted EBITDA for 2019 totaled $31.5 million, down modestly from…









Get the full report on Channelchek desktop.

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. 

How Americans Research and What it Means for Your Business

Ask Google how Americans conduct research, and it will return a whopping 352 million answers. That’s more than one answer for each American.

Expensive purchases, vacation, job moves, investments, college selection, and other big decisions usually involve research.   Where do people in the U.S.  turn for advice on making their important decisions? The Pew Research Center recently performed an extensive study on this subject. Pew is highly regarded for its objective public opinion polls and data-driven social science research.

The results are then shared to help uncover trends and to help support sound decision making.  Not long ago, they concluded a study using 10,168 U.S. adults as part of a project on trust and research. The results of the study can be very useful as a basis to guide business marketing, personal branding, and sales of all types. 

It comes as no surprise that a majority of people gather information themselves without reliance on others. A full 81% say they “do their own research” as their primary source for making major life decisions. This is near twice the percentage that say they rely heavily on family and friends, 43%. The survey uncovered that only 31% turn to “professionals” or  “experts.” A small fraction totaling 15% of the survey group said they rely “a little” on their own research.

Of the combined 96% of respondents that said they rely on their own research to some degree, they were then asked to define what it is they do to gather trusted information. When answering this open-ended question, they cited many venues–  they typically started with the internet.    However, the internet was not the be-all-end-all for personal research. Overall, 46% explained they turn to online sources, while 25% said they sought advice from others they know. Fewer still relied on prior education, followed by print media, and religious or instinctive decision-making. As the overlapping statistics imply, it is common for people to use multiple means to choose a course of action.

The non-multiple choice responses included trips to the library, discussions with friends and family, and through people with meaningful experience. Some of the respondents explained that they can find experts they trust online.  Among those using online research, there were some that would not make a purchase or even go out to eat to a new restaurant without first reading a review. In fact, 98% of respondents said customer reviews and ratings made them feel “a little,” to “a lot,” more comfortable about a purchase.

Take-Aways

Understanding the power of a review or rating helps people choose your business over alternative businesses. Even companies that get an “average” review should recognize that this could open your company to a higher level of consideration by 98% of those looking. Gaining trust plays a key role in businesses and the products they sell. Management should make sure they are doing all they can to manage toward this reality.

Suggested
Reading:

Should
Online Retailers Open Neighborhood Shops?

Is
Company Sponsored Research the Future for Small-Cap Stock Investors?

 Sources:

https://www.pewresearch.org/about/

https://www.people-press.org/2019/07/22/methodology-trust-distrust-in-america/

https://www.pewresearch.org/wp-content/uploads/2020/03/research-topline.pdf

https://www.pewresearch.org/topics/research-methodology/

Wednesday, March 11, 2020

Information Services (III)

Solid Ending to the Year

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

4Q19 Results. Information Services reported solid 4Q19 results with revenue of $65.5 million GAAP EPS of $0.04 and adjusted EPS of $0.10 compared to $67.9 million, a GAAP loss of $0.02, and adjusted EPS of $0.05 last year. We had forecast revenue of $67 million, GAAP EPS of $0.03, and adjusted EPS of $0.08. For the full year, III had revenue of $265.7 million, GAAP EPS of $0.07, and adjusted EPS of $0.29.


Strong Cash Flow Generation. Fourth quarter CFFO was $14.6 million due to operating results and collections. This brings the full year CFFO to $20.4 million, up from $19.1 million in 2018. Adjusted EBITDA for 2019 totaled $31.5 million, down modestly from…









Get the full report on Channelchek desktop.

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. 

Thursday, March 5, 2020

Comtech Telecommunications Corp. (CMTL)

Our First Coronavirus Victim: What’s the Impact Going Forward?

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, Senior Research Analyst, Noble Capital Markets, Inc.

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

2Q20 Results. Revenue was $161.7 million, adjusted EBITDA totaled $21.2 million, and diluted EPS was $0.14. The revenue and EPS numbers were below our, and consensus, expectations, although if we adjusted for the higher-than-expected M&A costs, quarter EPS was in-line with our estimate.


Coronavirus Impact. The swiftness of the coronavirus impact on 2Q results was unexpected, with a revenue impact in the $4-$5 million range. The impact will be even greater in the third quarter. How quickly orders and bookings are able to rebound in 2H20 will determine if Comtech is able to salvage fiscal 2020 from…










Get the full report on Channelchek desktop.

This 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. 

Thursday, March 5, 2020

Comtech Telecommunications Corp. (CMTL)

Our First Coronavirus Victim: What’s the Impact Going Forward?

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, Senior Research Analyst, Noble Capital Markets, Inc.

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

2Q20 Results. Revenue was $161.7 million, adjusted EBITDA totaled $21.2 million, and diluted EPS was $0.14. The revenue and EPS numbers were below our, and consensus, expectations, although if we adjusted for the higher-than-expected M&A costs, quarter EPS was in-line with our estimate.


Coronavirus Impact. The swiftness of the coronavirus impact on 2Q results was unexpected, with a revenue impact in the $4-$5 million range. The impact will be even greater in the third quarter. How quickly orders and bookings are able to rebound in 2H20 will determine if Comtech is able to salvage fiscal 2020 from…










Get the full report on Channelchek desktop.

This 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. 

Wednesday, March 4, 2020

Comtech Telecommunications Corp. (CMTL)

S-4 Provides Details on Gilat Merger

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, Senior Research Analyst, Noble Capital Markets, Inc.

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

S-4 Filing. Comtech filed an S-4 with the Securities and Exchange Commission Monday evening which provides additional detail regarding the Gilat acquisition. Using info as of 2/21, the total purchase price, including option costs, is projected to be $560.1 million, broken out into $404.2 million of cash and $155.9 million in CMTL shares, or roughly 4.85 million CMTL shares.


Price Appears Reasonable. Using Gilat management’s Base case financial projections of $302.2 million of revenue and $46 million of adjusted EBITDA for 2020, the 12.1x EV/EBITDA multiple appears reasonable given that historic comp transactions have occurred at…










Get the full report on Channelchek desktop.

This 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.