Category: Technology

Supreme Court Upholds TikTok Ban Law, Putting App’s Future in Trump’s Hands

Posted on by slightbourne@noblecapitalmarkets.com

In a landmark decision, the Supreme Court has upheld a law that would effectively ban TikTok in the United States by January 19 unless the social media platform is sold to an owner not controlled by a foreign adversary. The ruling places the fate of the app, used by 170 million Americans, in the hands of President-elect Donald Trump, who takes office on January 20.

The Court sided with the government’s position that ByteDance’s ties to China pose national security concerns, rejecting TikTok’s First Amendment arguments. While acknowledging the platform’s significance, the Court emphasized Congress’s authority to address national security threats. “There is no doubt that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community,” the Court stated, but concluded that the security concerns outweighed these considerations.

Trump, who previously promised to “save TikTok,” now holds significant influence over the app’s future. “It ultimately goes up to me, so you’re going to see what I’m going to do,” Trump told CNN following the Court’s decision. He has reportedly discussed the matter with Chinese President Xi Jinping and is considering various options, including an executive order that would delay the ban’s enforcement by 60 to 90 days.

The implementation of the ban would have far-reaching consequences for the tech industry. Major companies like Apple and Google would be prohibited from offering TikTok in their app stores, while cloud providers such as Microsoft, Amazon, and Oracle would be barred from hosting the service. Violations could result in penalties of up to $5,000 for each instance of US user access.

Several potential solutions have emerged as stakeholders scramble to prevent a shutdown. Chinese officials have reportedly discussed selling TikTok’s US operations to Elon Musk, owner of X, although their preference is to maintain ByteDance’s ownership. Additionally, a consortium led by billionaire Frank McCourt Jr. and including “Shark Tank” star Kevin O’Leary has expressed interest in acquiring the platform for up to $20 billion. “There’s a deal to be made here so that US TikTok can stay in business,” McCourt stated recently.

The ruling’s impact extends beyond TikTok itself, potentially reshaping the competitive landscape of social media. Industry analysts predict significant benefits for established platforms if TikTok exits the US market. William Blair research analyst Ralph Schackart estimates that Meta’s Instagram could capture 60-70% of TikTok’s advertising revenue, noting that Instagram “monetizes at around 3x the rate of TikTok.” Similarly, Morgan Stanley projects that YouTube’s Shorts platform could gain $400-750 million in ad revenue for every 10% of former TikTok user time it captures.

As the situation develops, legislative solutions are also being explored. Senator Ed Markey has introduced a bill that would extend the divestiture deadline by 270 days, potentially providing crucial additional time for negotiations. Trump’s incoming administration has multiple options, including pushing Congress to overturn the law, encouraging an extension of the deadline, or facilitating a sale of the US operations.

As the January 19 deadline approaches, the tech industry, millions of users, and the advertising market await clarity on whether Trump’s administration will enforce the ban, negotiate a sale, or find another solution to keep the popular platform operating in the United States. The outcome of this high-stakes situation will likely set important precedents for foreign-owned technology companies operating in the US market.

Electric Revolution: EVs and Hybrids Hit Historic 20% Market Share in US Auto Sales

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Over 3.2 million electrified vehicles sold in 2024
– Tesla maintains EV leadership despite market share drop to 49%
– Traditional combustion engine sales fall below 80% for first time

The U.S. automotive industry achieved a significant milestone in 2024, with electric and hybrid vehicles reaching 20% of the total market share for the first time, according to new data from Motor Intelligence. This marks a turning point in the evolution of consumer preferences, signaling a transition toward sustainable transportation options. While the shift to electrified vehicles has been slower than expected by some industry analysts, the data confirms that the momentum behind electrification is undeniable.

A total of more than 3.2 million electrified vehicles were sold last year, with hybrid vehicles—including plug-in models—accounting for 1.9 million units, and pure electric vehicles (EVs) making up 1.3 million sales. This surge has driven traditional internal combustion engine vehicles below the 80% market share threshold for the first time in modern automotive history, further emphasizing the growing importance of electrification in the U.S. automotive sector.

Tesla remains the dominant force in the EV market, despite a slight decline in its market share from 55% in 2023 to around 49% in 2024. While this drop may raise some eyebrows, it highlights the expanding competitiveness in the EV space rather than a downturn in Tesla’s performance. In fact, Tesla’s Model Y and Model 3 retained their positions as the bestselling electric vehicles in the U.S., continuing to set the pace for the industry.

The shift in Tesla’s market share also reflects an influx of new competitors entering the EV market. Hyundai Motor Group, including Kia, secured second place with 9.3% of the market, followed by General Motors at 8.7%, Ford at 7.5%, and BMW at 4.1%. This competition is reshaping the investment landscape, with traditional automakers like Ford and GM making aggressive pushes into the EV market, while luxury brands like BMW tap into the demand for high-end electrified models.

The evolving EV market is creating both opportunities and challenges for investors. The increasing competition, driven by both established automakers and new entrants, is a key factor reshaping the investment dynamics within the electric vehicle sector. Companies that are able to secure significant market share in the EV space, such as Tesla, GM, and Hyundai, are well-positioned to capitalize on the ongoing transition. At the same time, investors must remain vigilant to the competitive pressures that could impact individual companies’ performance, especially as the market continues to mature.

The 2024 data shows that the pace of electrification is accelerating, with over 68 mainstream EV models tracked by Cox’s Kelley Blue Book, and 24 of them showing year-over-year sales growth. The number of new models entering the market (17 in 2024) reflects the increasing commitment of manufacturers to the electric vehicle sector. Yet, it also underscores the need for companies to innovate and differentiate themselves in a crowded marketplace.

Looking ahead, the outlook for 2025 is promising. With projections for EV sales to potentially hit 10% of all new vehicle sales, and electrified vehicles (EVs and hybrids) possibly making up 25% of all new cars sold, the industry is poised for continued growth. However, the investment landscape could be impacted by policy changes, such as the potential reconsideration of the $7,500 federal tax credit for EVs under a new administration. Any changes to such incentives could influence future adoption rates and, in turn, investor sentiment in the electric vehicle market.

In conclusion, the electric vehicle market is undergoing a profound transformation, reshaping the U.S. automotive industry and the broader investment landscape. As more consumers make the switch to electrified vehicles and new players enter the market, investors will need to stay informed and strategically assess the opportunities and risks associated with this rapidly evolving sector.

Release – SKYX Announces that it Will Begin Supplying its Products to 140 Commercial Units in January 2025

Posted on by aweinsoff@channelchek.com

Research News and Market Data on SKYX

As SKYX Continues to Grow its Market Penetration, it is Expected to Supply Developer Jeremiah Baron Companies Products to a Total of 1000 Mixed-Use Residential and Commercial Units

The Products that are Expected to be Supplied to the Mixed-Use Project will include Ceiling Outlet Receptacles, Smart Plug & Play Platform Products including Lighting, Ceiling Fans, Recessed Lights, EXIT Signs, Emergency Lights, Down Lights, and Indoor and Outdoor Wall Lights

MIAMI, Jan. 15, 2025 (GLOBE NEWSWIRE) — SKYX Platforms Corp. (NASDAQ: SKYX) (d/b/a SKYX Technologies) (the “Company” or “SKYX”), a highly disruptive smart platform technology company with more than 97 issued and pending patents globally and over 60 lighting and home décor websites, announces that it will start supplying its products to developer Jeremiah Baron Companies for 140 commercial units representing the initial rollout of overall projects.

During the course of the projects, SKYX is expected to deliver tens of thousands of its products, representing a variety of its advanced and smart platform technology plug & play products. Delivery is expected to start in January 2025 and to continue throughout the construction of the developments in the state of Florida.

Rani Kohen, Founder/Inventor and Executive Chairman, of SKYX Platforms, said: “This is another step towards our goal of making homes and buildings become advanced, safe, and smart as the new standard. We are eager to continue to demonstrate our advanced smart platform technology’s ability to instantly make homes and buildings become advanced, safe, and smart.”

Jeremiah Baron, CEO and Founder of Jeremiah Baron Companies, said: “We are looking forward to developing and providing safe, smart, and advanced residential and commercial projects utilizing SKYX’s game changing technologies. This enables us to create substantial added value to our homes and buildings as well as for our customers, while realizing significant cost and time savings.” About Jeremiah Baron, click here: https://jeremiahbaroncompanies.com

About SKYX Platforms Corp.

As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the new standard. SKYX has a series of highly disruptive advanced-safe-smart platform technologies, with over 97 U.S. and global patents and patent pending applications. Additionally, the Company owns over 60 lighting and home decor websites for both retail and commercial segments. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at https://skyplug.com/ or follow us on LinkedIn.

Forward-Looking Statements

Certain statements made in this press release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “can,” “could,” “continue,” “estimate,” “expect,” “evaluate,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “target” “view,” “will,” or “would,” or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company’s ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its products and technologies and integrate its products and technologies with third-party platforms or technologies; the Company’s efforts and ability to drive the adoption of its products and technologies as a standard feature, including their use in homes, hotels, offices and cruise ships; the Company’s ability to capture market share; the Company’s estimates of its potential addressable market and demand for its products and technologies; the Company’s ability to raise additional capital to support its operations as needed, which may not be available on acceptable terms or at all; the Company’s ability to continue as a going concern; the Company’s ability to execute on any sales and licensing or other strategic opportunities; the possibility that any of the Company’s products will become National Electrical Code (NEC)-code or otherwise code mandatory in any jurisdiction, or that any of the Company’s current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all; risks arising from mergers, acquisitions, joint ventures and other collaborations; the Company’s ability to attract and retain key executives and qualified personnel; guidance provided by management, which may differ from the Company’s actual operating results; the potential impact of unstable market and economic conditions on the Company’s business, financial condition, and stock price; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There can be no assurance as to any of the foregoing matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws.

Investor Relations Contact:

Jeff Ramson

PCG Advisory

jramson@pcgadvisory.com

Release – Alaska Awards $92 Million Contract to Conduent to Enhance Medicaid Program Delivery Systems

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CNDT

January 15, 2025

Healthcare Services Government

Company to continue to partner on the state’s Medicaid Management Information System to better serve providers and residents

FLORHAM PARK, N.J. — Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, today announced a $92 million contract with the Alaska Department of Health, Division of Health Care Services (HCS). Under this agreement, Conduent will operate and manage the state’s Medicaid Management Information System (MMIS) as well as modernize the system.

Conduent has been a trusted partner to HCS since 2007 when it was first selected to deliver Medicaid Enterprise Systems technology solutions to the state of Alaska. The company will continue to manage essential services to support the state’s MMIS modernization goals, streamline business processes, enhance efficiency and create better access to health services for over 260,000 Medicaid-eligible residents.

Conduent will also provide technological innovations that enhance the state’s ability to improve the quality of health care, including enabling the system to process behavioral health claims to ensure recipients receive holistic healthcare and providers are paid timely and accurately.

“We are honored to continue our partnership with the Alaska Division of Health Care Services, and we share in their commitment to improving the health and well-being of its residents,” said Anna Sever, President, Government Solutions at Conduent. “Our top priority is to implement modern technology that enables the state’s Medicaid program operations to support high-quality payments to providers and seamless access for residents.”

Conduent supports approximately 100 million U.S. residents across various government health programs, helping state and federal agencies deliver critical services while reducing costs, increasing program participation and improving compliance.

For more than 42 years, Conduent has provided a range of government solutions, including Medicaid Enterprise Systems technology and services, as well as eligibility, critical payment disbursement and child support solutions. Visit Conduent Government Solutions to learn more.

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.

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

Comtech Telecommunications (CMTL) – Reports First Quarter Results

Posted on by cpereira@noblefcm.com


Tuesday, January 14, 2025

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

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

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

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

1Q25 Results. Revenue came in at $115.8 million, down 23.8% y-o-y. Revenue was below our estimate, consensus estimate, and management’s 4Q24 commentary. Adjusted EBITDA loss totaled $19.4 million, again below our estimate, consensus estimate, and management’s 4Q24 commentary. Comtech reported a GAAP net loss of $5.29/sh versus a loss of $0.11/sh in 1Q24. Adjusted net loss was $1.27/sh compared to EPS of $0.26/sh last year.

Segments. Terrestrial &Wireless revenue of $56.9 million rose 14.9% y-o-y. Adjusted EBITDA was $11 million, up 14% y-o-y. Book-to-bill was 1.22x. Satellite & Space segment revenue of $58.9 million declined 42.5% y-o-y, driven by a combination of divestitures and suboptimal performance. Segment adjusted EBITDA was a negative $21.1 million, while book-to-bill was 0.99x.


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Clearwater’s Enfusion Acquisition Bridges Front-to-Back Office Gap

Posted on by slightbourne@noblecapitalmarkets.com

Clearwater Analytics (NYSE: CWAN) announced today its agreement to acquire Enfusion, Inc. (NYSE: ENFN) for $1.5 billion, marking a significant move to create an integrated front-to-back investment management platform. The deal, announced January 13, 2025, will see Clearwater pay $11.25 per share in a mixed cash-and-stock transaction, along with $30 million to terminate Enfusion’s tax receivable agreement.

The acquisition brings together two complementary SaaS providers in the investment management space. Clearwater, known for its middle and back-office solutions, will integrate Enfusion’s front-office capabilities, including investment book of record (IBOR) and portfolio management systems, to create a unified cloud-native platform serving institutional investors.

“Today’s announcement is about creating a future where our clients benefit from the synergy of two highly complementary, innovative software leaders,” said Sandeep Sahai, CEO of Clearwater Analytics. The combination aims to eliminate the error-prone data handoffs that typically occur between front, middle, and back offices in investment operations.

The strategic merger significantly expands Clearwater’s market presence, particularly in the hedge fund sector where Enfusion has established itself as a leading platform provider. The deal is expected to increase Clearwater’s total addressable market by $1.9 billion and strengthen its international footprint, leveraging Enfusion’s strong presence in Europe and Asia, where it generates 38% of its revenue.

Clearwater expects to achieve substantial operational synergies, targeting $20 million in cost savings within the first two and a half years post-closing. The company also projects significant improvements in Enfusion’s adjusted EBITDA margins, anticipating a 400 basis point expansion in the first year and an additional 400 basis points in the second year after closing.

The transaction terms offer Enfusion shareholders $5.85 per share in cash and $5.40 per share in Clearwater Class A Common Stock, representing a 13% premium over Enfusion’s January 10 closing price and a 32% premium over its September 19, 2024 price, before market speculation about a potential sale began.

Enfusion’s CEO Oleg Movchan expressed enthusiasm about the merger, stating, “Together with Clearwater, our shared passion for building innovative technologies and enriching every aspect of the client journey will now accelerate and enhance our combined ability to support our clients’ evolving needs.”

The deal has received unanimous approval from both companies’ boards of directors and a special committee of independent Enfusion directors. Major Enfusion shareholders, including FTV, ICONIQ, and Mr. Movchan, who collectively hold approximately 45% of voting power, have agreed to support the transaction.

Clearwater has secured $800 million in committed financing through a Term Loan B, along with a $200 million revolving credit line to support the transaction. The company expects to close the deal in the second quarter of 2025, subject to regulatory approvals and customary closing conditions. Upon completion, the combined entity will be positioned to offer a comprehensive, cloud-native investment management solution that serves clients across the entire investment lifecycle.

Release – Comtech Announces Financial Results for the First Quarter of Fiscal 2025

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

CHANDLER, Ariz. – January 13, 2025– Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”), a global communications technology leader, today reported financial results for its first fiscal quarter ended October 31, 2024. In addition, Comtech separately announced today that its Board of Directors (the “Board”) has named Ken Traub as President and Chief Executive Officer, effective immediately, in addition to his current role as Chairman, and that the Board and management team are undertaking a series of prompt and decisive actions to address the Company’s current challenges and build a stronger company for long-term. That press release can be found on the Company’s investor relations website.

Consolidated Financial Results

  • Net sales of $115.8 million;
  • Net bookings of $127.9 million, representing a book-to-bill ratio of 1.10x;
  • Gross margin of 12.5%;
  • Operating loss of $129.2 million, net loss of $148.4 million and Adjusted EBITDA loss (a Non-GAAP measure) of $19.4 million;
  • Funded backlog of $811.0 million; and
  • Revenue visibility of approximately $1.6 billion.

Business Highlights

  • Awarded a sole source contract valued at over $50.0 million by the U.S. Navy Information Warfare Systems Command;
  • Awarded a contract renewal valued at over $30.0 million for critical enhanced 911 call routing services for one of the largest U.S. wireless carriers;
  • Awarded a large, multi-year location-based services maintenance and support contract valued at over $19.0 million for one of the largest U.S. wireless carriers;
  • Launched a new Digital Common Ground (“DCG”) portfolio of modems for U.S. government and commercial customers; and
  • Subsequent to quarter end, appointed Daniel Gizinski as President of the Satellite & Space Communications (“S&S”) segment, adding deep leadership expertise in satellite communications engineering, operations and product strategy.

Mr. Traub commented, “While Comtech’s recent historical performance has been unsatisfactory, the Company has great assets, including its people, technologies, reputation, customers and relationships. Since I joined the Company as Executive Chairman about six weeks ago, I have learned a lot, which gives me confidence that we can overcome the challenges and create new opportunities to strengthen the business and drive value. We are implementing a comprehensive set of initiatives to better position Comtech for the future including improving operational discipline, streamlining operations, supporting profitable growth initiatives, undertaking a broad review of strategic alternatives and strengthening the capital structure. I am honored to expand my role as President and CEO today, and look forward to leading the Company into a stronger and brighter future.”

Consolidated Results Commentary

Consolidated net sales of $115.8 million in the first fiscal quarter declined 23.8% compared to the prior year period, primarily due to the performance of the S&S segment and partially offset by growth in the Terrestrial & Wireless Networks (“T&W”) segment.

Consolidated net bookings were $127.9 million in the first fiscal quarter, a decrease of 31.1% compared to the prior year period. The book-to-bill ratio in the quarter was 1.10x, as compared to 1.22x in the prior year period. This was driven by several large awards in the prior year period, including funding from the U.S. Army related to the GFSR and EDIM contracts and an order from an international customer and reseller of the Company’s troposcatter solutions.

The first fiscal quarter results also reflect Comtech’s prior decisions to divest of its high-power solid-state amplifier (“PST”) and steerable antenna (“CGC”) product lines in fiscal 2024.

Gross profit was $14.5 million, or 12.5% of consolidated net sales, as compared to $47.9 million, or 31.5% of consolidated net sales, in the prior year period. This was driven by a large, high-margin troposcatter sale in the prior year period; higher-than-expected costs at completion for certain nonrecurring engineering-related projects in the satellite ground infrastructure product line; and late delivery penalties related to an international MTTS troposcatter solutions order. Gross profit in the more recent period was also impacted by a non-cash charge of $11.4 million related to the write-down of certain inventories in the S&S segment resulting from the Company’s review of its product portfolio, which is expected to improve the Company’s profitability in future periods.

Operating loss in the first fiscal quarter was $129.2 million, as compared to operating income of $2.1 million for the prior year period, and net loss in the first fiscal quarter was $148.4 million, as compared to $1.4 million in the prior year period. This was primarily due to a non-cash goodwill impairment charge of $79.6 million in the S&S segment; $17.9 million of restructuring costs (including the aforementioned inventory write down); and a non-cash charge of $17.4 million to fully reserve for an unbilled receivable contract asset related to an international customer and reseller of the Company’s troposcatter solutions, among other things.

Adjusted EBITDA loss (a non-GAAP measure) was $19.4 million in the first fiscal quarter, compared to Adjusted EBITDA income of $18.4 million in the prior year period.

Backlog was $811.0 million as of October 31, 2024, compared to $798.9 million as of July 31, 2024.

Revenue visibility, measured as the sum of funded backlog and the total unfunded value of certain multi-year contracts, was approximately $1.6 billion at the end of the quarter.

Satellite and Space Communications Segment Commentary

Net sales in the S&S segment were $58.9 million in the first fiscal quarter, a decrease of 42.5% compared to the prior year period. This was driven by a decline in sales of troposcatter and SATCOM solutions; the impact of the PST divestiture completed in November 2023; and the impact of the CGC divestiture initiated in the fourth quarter of fiscal 2024. The decrease also reflects the impact of late delivery penalties related to an international MTTS troposcatter solutions order.

Net bookings in the S&S segment were $58.4 million in the first fiscal quarter, a decrease of 57.4% compared to the prior year period. The book-to-bill ratio in the quarter was 0.99x, as compared to 1.34x in the prior year period.

Key S&S contract awards and product launches during the first fiscal quarter included:

  • Securing in excess of $16.0 million of funded orders from the U.S. Army calling for the supply of VSAT equipment and related services;
  • Receiving more than $8.5 million in incremental funding related to the Company’s U.S. Army EDIM contract;
  • Awarded over $6.0 million in funded orders from a new international customer for certain frequency-type power amplifiers;
  • Awarded a production order, valued in excess of $5.0 million, by an existing customer deploying a new LEO constellation (deliveries are anticipated to begin in the mid-2025 timeframe);
  • Awarded a sole source contract, valued in excess of $50.0 million, by the U.S. Navy Information Warfare Systems Command (the contract has a four-year period of performance, and funded orders received to date are valued at approximately $2.0 million);
  • Awarded approximately $2.0 million in funded orders from a new international customer of the Company’s ELEVATE™ networking platform; and
  • Launched the DCG platform, based on the proven success of the Company’s previous software-defined modem platforms.

S&S segment operating loss was $118.8 million in the first fiscal quarter, compared to operating income of $10.1 million in the prior year period, and net loss in the first fiscal quarter was $119.4 million, as compared to net income of $9.3 million for the prior year period. This was driven by a non-cash goodwill impairment charge of $79.6 million; a non-cash charge of $17.4 million to fully reserve for an unbilled receivable contract asset related to an international customer and reseller of the Company’s troposcatter solutions; $13.8 million of restructuring costs (including the aforementioned non-cash charge related to inventory write-downs); $3.0 million of amortization of intangibles; and lower net sales and gross profit in this segment.

Adjusted EBITDA loss in the S&S segment was $21.1 million in the first fiscal quarter, compared to Adjusted EBITDA of $15.1 million in the prior year period, driven by significantly lower net sales and gross profit, and higher selling, general and administrative expenses (due to the aforementioned $17.4 million non-cash charge related to an allowance for doubtful account), offset in part by lower research and development expenses.

At quarter end, the S&S segment had $278.4 million in funded backlog.

Subsequent to quarter end, Daniel Gizinski was appointed as President of the S&S segment, bringing to Comtech over 15 years of experience in satellite communications engineering, operations, product strategy and executive management. He oversees all aspects of this segment, including product development, operations and market expansion.

Terrestrial & Wireless Networks Segment Commentary

Net sales in the T&W segment were $56.9 million in the first fiscal quarter, an increase of 14.9% as compared to the prior year. This growth was driven by higher net sales of call handling and Next Generation 911 (“NG-911”) services, partially offset by lower net sales of location-based solutions.

Net bookings in the T&W segment were $69.4 million in the first fiscal quarter, an increase of 43.4% compared to the prior year period. The book-to-bill ratio in the quarter was 1.22x, as compared to 0.98x in the prior year period.

Key T&W contract wins and renewals during the first fiscal quarter included:

  • Awarded a contract renewal by one of the largest U.S. wireless carriers, valued in excess of $30.0 million, for critical enhanced 911 call routing services;
  • Awarded a large, multi-year contract, valued at over $19.0 million, for location-based maintenance and support services for one of the largest U.S. wireless carriers;
  • Awarded a contract by a municipality located in British Columbia, Canada, valued at more than $2.0 million, for an NG-911 Guardian call handling solution;
  • Awarded over $1.0 million in funding to continue servicing certain PSAPs in a New England state; and
  • Awarded over $1.0 million of funding related to an NG-911 deployment in South Carolina.

The T&W segment recorded operating income of $5.3 million in the first fiscal quarter, an increase of 31.6% compared to the prior year period, and net income of $5.3 million in the first quarter, an increase of 28.9% compared to the prior year period. Adjusted EBITDA was $11.0 million, an increase of 14.0% compared to the prior year period. This growth reflects higher net sales, partially offset by a lower gross profit percentage in this segment.

At quarter end, the T&W segment had $532.6 million in funded backlog.

Cost-Savings and Profit Improvement Initiatives

As announced separately today, the Company is conducting a thorough review of processes, product lines, staffing levels and cost structures to identify actions that are expected to meaningfully reduce costs, enable a more efficient and effective organization and improve its cash conversion cycle. To that end, the Company notes that since July 2024, it has significantly progressed with its plans to wind down its steerable antenna operations located in the U.K. (GAAP operating losses related to this product line in fiscal 2024, 2023 and 2022 were $32.3 million, $8.2 million and $9.9 million, respectively). In addition to discontinuing approximately 70 products within the Company’s satellite ground infrastructure product line to focus on higher margin revenue opportunities, the Company has also reduced its global workforce by approximately 13% since July 31, 2024, which represents approximately $26 million in annualized labor costs. Severance associated with such actions approximated $2.8 million, of which $1.1 million will be expensed in the second quarter of fiscal 2025.

Liquidity

Comtech’s cash and cash equivalents were approximately $30 million as of both October 31, 2024 and January 10, 2025. As previously disclosed, on June 17, 2024, the Company entered into a new $222.0 million credit facility. The credit facility was subsequently amended on October 17, 2024, to, among other things, suspend financial covenant testing for the Company’s first fiscal quarter ended October 31, 2024. On October 17, 2024, the Company also entered into a $25.0 million subordinated credit facility.

As of quarter end, aggregated outstanding debt under these two credit facilities was approximately $225 million, before consideration of GAAP related adjustments to reflect offsetting deferred financing costs and discounts related to each facility. Over the next twelve months, commencing with its fiscal quarter ending January 31, 2025, when financial covenant testing resumes, the Company believes that it will not be able to comply with one or more of these covenants. As a result, such debt was presented as “current” on the Company’s condensed consolidated balance sheet as of October 31, 2024.

Strengthening the balance sheet is a top priority for the Company. This includes lowering investments in working capital, reducing debt levels and cash interest costs and regaining compliance with financial covenants. The Comtech Board is confident that Mr. Traub possesses the requisite skill set, track record and experience to oversee these initiatives.

As announced in a separate press release today, the Company’s Board is conducting a comprehensive review of strategic alternatives. This process will include evaluating capital-raising and de-levering opportunities.

Outlook

Comtech is not providing guidance.

Conference Call and Webcast Information

Comtech will host a conference call with investors and analysts today at 8:30 am Eastern Time. Mr. Traub will lead the call, joined by Michael Bondi, Chief Financial Officer; Daniel Gizinski, President of the Satellite and Space Communications segment; and Jeff Robertson, President of the Terrestrial & Wireless Networks segment. A live webcast of the conference call will be accessible on the Investor Relations section of Comtech’s website at www.comtech.com/investors. Alternatively, investors can access the conference call by dialing (800) 579-2543 (domestic), or (785) 424-1789 (international) and using the conference I.D. “Comtech.” A replay will be available for seven days by dialing (800) 839-9557 (domestic), or (402) 220-6089 (international).

About Comtech

Comtech Telecommunications Corp. is a leading provider of satellite and space communications technologies; terrestrial and wireless network solutions; Next Generation 911 (“NG911”) and emergency services; and cloud native capabilities to commercial and government customers around the world. Through its culture of innovation and employee empowerment, Comtech leverages its global presence and decades of technology leadership and experience to create some of the world’s most innovative solutions for mission-critical communications. For more information, please visit www.comtech.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release contains, and oral statements made by the Company’s representatives from time to time may contain, forward-looking statements. Forward-looking statements can be identified by words such as: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “goal,” “outlook,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would,” and similar references to future periods. Forward-looking statements include, among others, statements regarding its expectations for its strategic alternatives process, expectations for further portfolio-shaping opportunities, expectations for other operational initiatives, the intended use of proceeds from the Credit Facility and Subordinated Credit Facility, expectations for completing further financing initiatives, future performance and financial condition, plans to address its ability to continue as a going concern, the plans and objectives of management and 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 its control which may cause actual results, future performance and financial condition, and achievement of plans and objectives of management to be materially different from the results, performance or other expectations implied by these forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things: the outcome and effectiveness of the aforementioned strategic alternatives process, further portfolio-shaping opportunities, other operational initiatives, and the completion of further financing activities; its ability to access capital and liquidity so that the Company is able to continue as a going concern; its ability to implement changes in executive leadership; the possibility that the expected synergies and benefits from 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 activist stockholders; the possibility of disruption from acquisitions or dispositions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that the Company will be unsuccessful in implementing a tactical shift in its Satellite and Space Communications segment away from bidding on large commodity service contracts and toward pursuing contracts for niche products and solutions with higher margins; the nature and timing of receipt of, and performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements; changing customer demands and/or procurement strategies and ability to scale opportunities and deliver solutions to current and prospective customers; changes in prevailing economic and political conditions, including as a result of Russia’s military incursion into Ukraine, the Israel-Hamas war and attacks in the Red Sea region; changes in the price of oil in global markets; changes in prevailing interest rates and foreign currency exchange rates; risks associated with legal proceedings, customer claims for indemnification, and other similar matters; risks associated with obligations under its credit facilities; risks associated with large contracts; risks associated with supply chain disruptions; and other factors described in this and other Company filings with the Securities and Exchange Commission.

Appendix:

  • Condensed Consolidated Statements of Operations (Unaudited)
  • Condensed Consolidated Balance Sheets (Unaudited)
  • Use of Non-GAAP Financial Measures

Release – Comtech Announces CEO Transition and Comprehensive Transformation Initiatives

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

Appoints Kenneth H. Traub as President and Chief Executive Officer, Effective Immediately

Commences Comprehensive Transformation to Immediately Strengthen Company

CHANDLER, Ariz. – Jan. 13, 2025– Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”), a global communications technology leader, today announced that its Board of Directors (the “Board”) has named Ken Traub as President and Chief Executive Officer, replacing John Ratigan effective immediately. Mr. Traub joined the Comtech Board on October 31, 2024 and became Executive Chairman on November 27, 2024.

Mr. Traub is leading a comprehensive transformation of Comtech. Some highlights of this transformation include:

  • Operational Discipline and Rightsizing. Comtech is taking decisive action to improve processes, streamline product lines, optimize staffing and sharpen its organizational focus. These actions are expected to result in significant cost savings and working capital efficiencies, particularly in the Company’s Satellite & Space Communications (“S&S”) segment, and position Comtech to generate sustainable positive cash flow.
  • Support and Grow Successful Business Units. The Company’s Terrestrial & Wireless Networks (“T&W”) segment is poised for continued strong growth, driven by the need for nontraditional methods to request emergency help from new devices and the segment’s new initiatives in public safety technologies. The growth of the Company’s carrier businesswill be supported by its latest cloud-agnostic 5G passive and emergency location, messaging and alerting services. In the S&S segment, Comtech is strong in designing, manufacturing and supporting sophisticated communications equipment for both defense and commercial users that rely on the Company to provide mission-critical communications infrastructure. Comtech will prudently invest in and support these successful businesses and capitalize on opportunities to build and monetize these valuable assets.
  • Strategic Alternatives Process. TheComtech Board, under Mr. Traub’s leadership, will conduct a comprehensive review of strategic alternatives and explore a range of potential transactions to enhance Comtech’s strategic focus and strengthen the Company’s balance sheet. This process is a broadening of the previously announced review of strategic alternatives for the T&W segment and will include various alternatives for the S&S segment.
  • Strengthening the Capital Structure. Comtech had available liquidity of approximately $30 million of cash and equivalents as of both October 31, 2024 and January 10, 2025. The Company is positioned to generate positive cash flow over the coming months through implementation of the initiatives described above and will consider opportunities to strengthen its capital structure.

Mr. Traub commented, “While Comtech’s recent historical performance has been unsatisfactory, the Company has great assets, including its people, technologies, reputation, customers and relationships. Since I joined the Company as Executive Chairman about six weeks ago, I have learned a lot, which gives me confidence that we can overcome the challenges and create new opportunities to strengthen the business and drive value. We are implementing a comprehensive set of initiatives to better position Comtech for the future including improving operational discipline, streamlining operations, supporting profitable growth initiatives, undertaking a broad review of strategic alternatives and strengthening the capital structure. I am honored to expand my role as President and CEO today, and look forward to leading the Company into a stronger and brighter future.”

“The Board is fully supportive of Ken’s leadership and committed to his strategy that will deliver immediate and necessary improvements for Comtech,” said former Army Chief Information Officer, Lieutenant General (Retired) Bruce T. Crawford, Lead Independent Director of the Comtech Board.

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

First Quarter Fiscal 2025 Financial Results: Conference Call and Webcast Information

In a separate press release issued today, Comtech announced its financial results for the first quarter of fiscal 2025. That press release can be found on the Investor Relations section of the Company’s website at www.comtech.com/investors.

Comtech will host a conference call with investors and analysts today at 8:30 am Eastern Time. Mr. Traub will lead the call, joined by Michael Bondi, Chief Financial Officer; Daniel Gizinski, President of the Satellite and Space Communications segment; and Jeff Robertson, President of the Terrestrial & Wireless Networks segment. A live webcast of the conference call will also be accessible at www.comtech.com/investors. Alternatively, investors can access the conference call by dialing (800) 579-2543 (domestic), or (785) 424-1789 (international) and using the conference I.D. “Comtech.” A replay will be available for seven days by dialing (800) 839-9557 (domestic), or (402) 220-6089 (international).

About Kenneth H. Traub

Mr. Traub has served as a director on Comtech’s Board since October 2024 and was named as Executive Chairman in November 2024. He is a visionary and transformational corporate leader with a successful track record of building sustainable shareholder value. Mr. Traub has over 30 years of experience as a Chairman, CEO, director and active investor with a demonstrated record of accomplishment in driving strategic, financial, operational and governance improvements. Mr. Traub is adept at managing business challenges, executing turnarounds, optimizing capital allocation, driving operational improvements, implementing M&A and other strategic initiatives and capitalizing on strategic growth opportunities. Mr. Traub received a BA from Emory College in 1983 and an MBA from Harvard Business School in 1988.

About Comtech

Comtech Telecommunications Corp. is a leading provider of satellite and space communications technologies; terrestrial and wireless network solutions; Next Generation 911 (NG911) and emergency services; and cloud native capabilities to commercial and government customers around the world. Through its culture of innovation and employee empowerment, Comtech leverages its global presence and decades of technology leadership and experience to create some of the world’s most innovative solutions for mission-critical communications. For more information, please visit www.comtech.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release contains, and oral statements made by our representative from time to time may contain, forward-looking statements. Forward-looking statements can be identified by words such as: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “goal,” “outlook,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would,” and similar references to future periods. Forward-looking statements include, among others, statements regarding our expectations for our strategic alternatives process, our expectations for further portfolio-shaping opportunities, our expectations for other 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 are described in our filings with the Securities and Exchange Commission. 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. 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.

Investor Relations Contact

Maria Ceriello

631-962-7102

investors@comtech.com

Media Contact

Jamie Clegg

480-532-2523

jamie.clegg@comtech.com

Release – Comtech to Report First Quarter Fiscal 2025 Results on January 13, 2025

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

CHANDLER, Ariz. – Jan. 10, 2025– Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”) today announced that it plans to release its first quarter fiscal 2025 results before the market opens on Monday, January 13, 2025.

At 8:30 a.m. ET that day, Comtech’s leadership team will hold a conference call to discuss the Company’s first quarter fiscal 2025 results, operations, and business trends. A real-time webcast of the call will be available to the public at the investor relations section of the Comtech web site at www.comtech.com. Alternatively, investors can access the conference call by dialing (800) 579-2543 (primary) or (785) 424-1789 (alternate) and using the conference I.D. of “Comtech.” A replay of the call will also be available by dialing (800) 839-9557 or (402) 220-6089 through Monday, January 27, 2025.

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.

Investor Relations

Maria Ceriello

631-962-7115

Maria.Ceriello@comtech.com

Bitcoin Depot (BTM) – Scores Another Retail Partnership

Posted on by slightbourne@noblecapitalmarkets.com


Friday, January 10, 2025

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

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

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

Adding 50 kiosks. On December 8, the company announced the deployment of 50 additional kiosks through a new partnership with a convenience store operator. The newly deployed kiosks are in the Texas Panhandle and surrounding region, including multiple states.

Executing its kiosk expansion strategy. In our view, the recent development illustrates the company’s favorable execution of its kiosk expansion strategy. Importantly, the company owns over 10,000 kiosks, of which roughly 8,300 were deployed as of September 30, 2024. As such, we believe the company is well positioned to aggressively deploy additional kiosks and seed future revenue growth.


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*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. 

Release – Perfect Corp. Completes Acquisition of Wannaby, Strengthening Its Market Position in Luxury Fashion Tech

Posted on by aweinsoff@channelchek.com

Research News and Market Data on PERF

January 8, 2025

NEW YORK–(BUSINESS WIRE)– Perfect Corp. (NYSE: PERF), a global leader in beauty and fashion tech solutions, today announced the successful closing of its acquisition of Wannaby Inc., initially announced last month. This strategic transaction further solidifies Perfect Corp.’s position as a beauty and fashion tech leader and expands the company’s capabilities, product offerings, and customer reach.

“We’re thrilled to finalize this acquisition and welcome the talented Wannaby team into the Perfect Corp. family,” said Alice Chang, CEO of Perfect Corp. “By combining our strengths and resources, we can deliver even greater value to our customers and accelerate our long-term growth strategy.”

The integration of Wannaby into Perfect Corp. will begin immediately, ensuring a seamless transition for existing customers and employees. Through combined expertise and complementary resources, Perfect Corp. looks forward to continuing its commitment to quality, innovation, and superior customer service.

About Perfect Corp.

Perfect Corp. is a leading provider of AI and AR technology solutions for the beauty and fashion industries. The company is known for its cutting-edge virtual try-on solutions and beauty diagnostics to millions of users worldwide. Perfect Corp.’s technology powers the digital transformation of global beauty brands, offering innovative tools that enhance the online shopping experience.

About Wannaby

Wannaby is a pioneer in augmented reality and computer vision technologies, specializing in virtual try-on solutions for the fashion industry. The company’s platform enables consumers to see how products like shoes and accessories look on them in real-time, revolutionizing the online shopping experience for fashion retailers around the world.

Disclaimers and Forward-Looking Statements

This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy securities. This communication contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on beliefs and assumptions and on information currently available to Perfect. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including the expected benefits of the acquisition, are also forward-looking statements. These statements involve risks, uncertainties and other factors, including challenges related to the integration of Wannaby and changes in market conditions, that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These statements are based on Perfect’s reasonable expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Perfect’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Perfect to predict these events or how they may affect Perfect. In addition, risks and uncertainties are described in Perfect’s filings with the Securities and Exchange Commission. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Perfect cannot assure you that the forward-looking statements in this communication will prove to be accurate. There may be additional risks that Perfect presently does not know or that Perfect currently does not believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by Perfect, its directors, officers or employees or any other person that Perfect will achieve its objectives and plans in any specified time frame, or at all. Except as required by applicable law, Perfect does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date of this communication. You should, therefore, not rely on these forward-looking statements as representing the views of Perfect as of any date subsequent to the date of this communication.

Perfect Corp. Media Relations :
Tony Tsai at press@perfectcorp.com
Website: www.perfectcorp.com

Perfect Corp. Investor Relations:
Email: Investor_Relations@PerfectCorp.com

Farfetch Media Relations :
Email: press@farfetch.com
Website: www.farfetch.com

Source: Perfect Corp.

Release – Bitcoin Depot Expands BTM Network Through Partnership with Prominent Texas Convenience Store Chain

Posted on by aweinsoff@channelchek.com

Research News and Market Data on BTM

January 08, 2025 8:00 AM EST Download as PDF

Bringing Greater Access to Bitcoin for Communities Across the Texas Panhandle and Surrounding Regions

ATLANTA, Jan. 08, 2025 (GLOBE NEWSWIRE) — Bitcoin Depot Inc. (“Bitcoin Depot” or the “Company”) (NASDAQ: BTM), a U.S.-based Bitcoin ATM (“BTM”) operator and leading fintech company, today announced the deployment of 50 additional Bitcoin ATMs in partnership with a prominent convenience store operator with locations across the Texas Panhandle and nearby states. The expansion provides customers with convenient access to purchase Bitcoin and participate in the broader digital financial system.

“With this partnership, we’re not only expanding our retail footprint in the Southwestern U.S.; we’re directly addressing the growing demand for convenient crypto access,” said Brandon Mintz, CEO of Bitcoin Depot. “By working with a well-known retail partner in high-traffic locations, we’re making cryptocurrency accessible to a broader audience, particularly those who may not have had convenient access before. We’re excited to continue providing accessible and secure financial options for everyone as Bitcoin’s momentum drives new users to enter the market.”

As the largest BTM operator in North America, Bitcoin Depot has built significant momentum in the last year, marked by record-breaking industry highs and key company milestones such as expanding its BDCheckout Program to six new states and extending its reach into Australia and Puerto Rico. In July 2024, the Company also exceeded its goal of deploying over 8,000 Bitcoin ATMs five months ahead of schedule. These achievements are part of Bitcoin Depot’s broader growth strategy and mission of Bringing Bitcoin to the Masses.® 

Bitcoin Depot BTMs are designed to provide a seamless user experience, allowing customers to quickly convert cash into Bitcoin and access the broader digital financial system for payments, transfers, remittances, and investments.

About Bitcoin Depot 
Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 29 states through its BDCheckout product. The Company has the largest market share in North America with approximately 8,486 kiosk locations as of December 05, 2024. Learn more at www.bitcoindepot.com. 

Cautionary Note Regarding Forward-Looking Statements

This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, the anticipated effects of the Amendment, and the closing of the Preferred Sale. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change.

We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

Contacts: 

Investors 
Cody Slach
Gateway Group, Inc. 
949-574-3860 
BTM@gateway-grp.com 

Media 
Brenlyn Motlagh, Ryan Deloney 
Gateway Group, Inc. 
949-574-3860 
BTM@gateway-grp.com

Primary Logo

Source: Bitcoin Depot Inc.

Released January 8, 2025

Quantum Computing Stocks Plummet After Nvidia CEO’s Reality Check

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Major quantum computing stocks drop over 30% following Huang’s timeline estimate
– Nvidia CEO suggests practical quantum computing 15-30 years away
– Dramatic decline follows recent surge fueled by Alphabet’s breakthrough

The quantum computing sector faced a harsh reality check Wednesday as stocks tumbled sharply following sobering comments from Nvidia CEO Jensen Huang about the technology’s practical timeline. Leading companies in the space saw their shares plunge by more than 30% after Huang suggested that “very useful” quantum computers might still be decades away.

Huang’s assessment at Nvidia’s analyst day placed the timeline for practical quantum computing applications between 15 and 30 years out, with 20 years as a consensus estimate. “If you kind of said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it’s probably on the late side,” Huang stated during a Q&A session, adding that a 20-year timeline would align with many industry experts’ expectations.

The market reaction was swift and severe. Industry leaders saw their valuations collapse, with Quantum Computing Inc., D-Wave Quantum Inc., and Rigetti Computing Inc. all experiencing drops exceeding 30%. IonQ, another major player in the sector, fell approximately 29%. The sell-off extended globally, affecting Chinese quantum computing firms like QuantumCTek Co. Ltd and Accelink Technologies Co. Ltd.

The dramatic decline is particularly notable given the sector’s recent performance. Quantum Computing shares had skyrocketed over 1,800% in the past year, reaching $17.49 before the correction. Rigetti had surged more than 1,500% to $18.39, while D-Wave advanced nearly 1,000% to $9.55. IonQ, despite a relatively modest gain compared to its peers, had still climbed more than 300% to $49.59.

This market correction highlights the growing tension between technological optimism and practical reality in emerging technologies. While quantum computing promises revolutionary advances in fields ranging from cryptography to drug discovery, Huang’s comments underscore the significant technical challenges that remain before these possibilities can be realized.

The timing of the sell-off is particularly significant given recent developments in the field. Just last month, Alphabet Inc. announced a breakthrough in quantum computing technology, which had helped fuel the sector’s enthusiasm. However, even this positive news couldn’t shield the industry from the impact of Huang’s realistic assessment, with Alphabet’s shares declining 0.81% despite their strong December performance.

The broader implications of this market movement extend beyond immediate stock prices. Investors and industry observers are now reassessing their expectations for the commercialization of quantum technology. This reality check may lead to more measured investment approaches in the quantum computing sector, with greater emphasis on long-term development rather than speculative gains.

For the affected companies, this market correction presents both challenges and opportunities. While their market valuations have taken a significant hit, the reduced pressure of inflated expectations may allow for more focused development of their technologies. The extended timeline suggested by Huang could actually provide these companies with the space needed to solve the complex technical challenges inherent in quantum computing development.

As the dust settles on this market adjustment, the fundamental promise of quantum computing remains intact. However, investors and industry stakeholders are now faced with a more pragmatic view of the technology’s development timeline, potentially leading to more sustainable and realistic growth expectations in the sector.