Comtech Names Ken Peterman Chairman of the Board

Research, News, and Market Data on Comtech Telecommunications

Fred Kornberg to retire following 50 years of
service

MELVILLE, N.Y.
–(BUSINESS WIRE)–Jul. 25, 2022– 
Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today that it has elected current independent director  Ken Peterman  as Chairman of the Board, effective 
July 22, 2022.  Mr. Peterman will succeed  Fred Kornberg , who is retiring as Chairman.  Mr. Kornberg  will also not stand for re-election to the Board and will step down as a director immediately preceding the next annual shareholder meeting.

“As Comtech gets ready to start its fiscal 2023, the full Board is delighted that Ken will step into the Chairman role,” said  Judy Chambers , Chairperson of Comtech’s 
Nominating and Governance Committee of the Board. “Ken has shown himself to be a highly capable successor, who can help guide the Company as it continues to transform itself and build upon its leadership positions in key areas of the 
Failsafe Communications
 market.”

“It’s an honor to have been elected Chairman by this Board,” noted  Ken Peterman . “I’m extremely excited about Comtech’s potential, and genuinely appreciate the legacy of hard work, innovation and customer focus that Fred established. I look forward to helping President and CEO  Mike Porcelain  and the rest of the Board build on Comtech’s strong foundation to create long-term shareholder value.”

“It’s been a true privilege to have led 
Comtech through so many different eras,” said  Mr. Kornberg . “I know I leave the Company in excellent hands, with both Mike and Ken at the helm, as 
Comtech enters its next chapter of growth and success.”

Mike Porcelain  added, “It goes without saying that we’re all deeply grateful for Fred Kornberg’s contributions to the Company. With over 50 years of service to 
Comtech, Fred’s retirement is well-earned, and I speak for both the Board and everyone at 
Comtech when I say we wish him well.”

In connection with Mr. Kornberg’s full retirement, 
Comtech is announcing that it will reduce the size of its Board to eight members, seven of whom will be independent. This reduction will take place immediately preceding the next annual shareholder meeting.

Mr. Peterman  joined the Comtech Board in 
May 2022
, following an accomplished career that spanned over forty years in the defense sector, earning credentials across a wide array of markets and both commercial and government satellite systems at companies, including Viasat, ITT/
Exelis, 
Collins Aerospace
, 
Raytheon and SpyGlass Group.

Mr. Kornberg  was CEO and President of 
Comtech from 1976 to 2021 and has been a director of the company since 1971. He was the Executive Vice President of the company from 1971 to 1976 and the General Manager of the telecommunications transmission segment.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless 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 could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

PCMTL

View source version on businesswire.com: https://www.businesswire.com/news/home/20220724005035/en/

Investor Relations

Robert Samuels
robert.samuels@comtech.com
(631) 962-7102

Source: 
Comtech Telecommunications Corp.

Image Credit: fdecomite (Flickr)

Was MicroStrategy Trying to Cause Bitcoin’s Price to Change Direction?

With Bitcoin trading at $19,000, is it a buy? This is the big question crypto-traders and crypto-investors are asking themselves. While others are staring at their screens wondering, software company MicroStrategy (MSTR), the company that stared down a possible margin call on its $3.97 billion bitcoin stake a few weeks back, just put an additional 480 bitcoin (BTC.X) on the company books. 

The CEO, with board approval, holds an inordinate amount of bitcoins. The analytics software company with a $1.93 billion market cap owns so many that its stock trades in tandem with the price of the cryptocurrency.

On Wednesday (June 29), the company reported that it had purchased an additional 480 bitcoins for about $10 million at an average price of $20,817 per coin from early May to June 28. The updated position brings the company holdings to 129,699 bitcoins (BTC.X). Its average cost is $30,664 for a total acquisition cost of $3.98 billion. At $19,100. Per coin, the company holdings are worth approximately $2.477 billion.

During bitcoin’s latest leg down to the $18,000-$21,000 range, there was a lot of talk about whether MicroStrategy may begin to face margin calls. The company CEO Michael Saylor dismissed the chatter and indicated the company would purchase additional bitcoins as cash flow allowed.

In a recent Channelchek article titled, Cowboys
and Cryptocurrency the question was asked, is the founder of this successful company a “cowboy” willing to take risks for the thrill of the ride. The new addition of even more bitcoin after the challenges his company was rumored to have faced a few weeks back, coupled with the overall dark clouds over crypto, might cause one to answer “yes,” he may have a penchant for risk-taking. But perennial “Gold Bug” Peter Schiff offers a different theory surrounding Saylor’s more recent $10 million bitcoin purchase.

Peter Schiff is a well-known critic of bitcoin. He has suggested that the MicroStrategy purchase was an attempt to cause a rally on the news. After the widespread rumors of MicroStrategy’s potential margin call, a strong show of support for the cryptocurrency, even if only $10 million, by Saylor, could have served as the push bitcoin needed to trade higher.

Bitcoin is down 60% year-to-date. This is double the losses in the tech-heavy Nasdaq which is down 29%. A sign of support from a big advocate and large holder had the potential to get something going, except the headwinds for many assets are strong.

Take Away

It would seem MicroStrategy and its founder are unrelenting in believing in the potential of bitcoin as sound money, and despite its loss of close to $10,000 per BTC on its total holdings, the firm is optimistic that the currency will prove itself superior. Once proven, it will pave the way for a bullish run. Or they could be wrong, and the company may eventually trade on other fundamentals.

Paul Hoffman

Managing Editor, Channelchek

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The Metaverse, Panel Presentation – NobleCon18

Sources

https://www.youtube.com/watch?v=v7_DJKkijLo

https://twitter.com/PeterSchiff/status/1542164209995337734

https://mises.org/power-market/3-common-criticisms-crypto-and-why-theyre-wrong

https://www.coindesk.com/podcasts/coindesks-money-reimagined/terraform-labs-ust-stablecoin-broke-the-buck/#:~:text=How%20the%20naysayers%20were%20right,why%20it%20matters%20for%20investors.

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Digerati Technologies Reports 118% Revenue Growth to $8.163 Million for Third Quarter FY2022, Highest Quarterly Revenue in Company History

Research, News, and Market Data on Digerati Technologies

– Non-GAAP Operating EBITDA of $0.969 Million –
– Gross Profit of $5.002 Million –
– Strong Gross Margin Improvement to 61.3% –

SAN ANTONIO,
TX (GlobeNewswire) – June 21, 2022 – Digerati Technologies, Inc. (OTCQB: DTGI), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, announced today financial results for the three months ended April 30, 2022, the Company’s third quarter for its Fiscal Year 2022.

Key Financial
Highlights for the Third Quarter Fiscal Year 2022 (Ended April 30, 2022)

• Revenue increased by 118% to $8.163 million compared to $3.751 million for Q3 FY2021.
• Gross profit increased 125% to $5.002 million compared to $2.225 million for Q3 FY2021.
• Gross margin increased to 61.3% compared to 59.3% for Q3 FY2021.
• Non-GAAP Adjusted EBITDA income was $0.557 million, excluding all non-cash items and one-time transactional expenses, compared to Adjusted EBITDA income of $0.321 million for Q3 FY2021.
• Non-GAAP operating EBITDA (OPCO EBITDA) improved to income of $0.969 million, excluding corporate expenses, all non-cash items and one-time transactional expenses, compared to a non-GAAP operating EBITDA of $0.619 million for Q3 FY2022.

Arthur L. Smith, CEO of Digerati, commented, “We are extremely pleased with the operating and financial results for our third quarter fiscal year 2022, which include our recent acquisitions of SkyNet Telecom and NextLevel Internet. Our cloud communications and broadband solutions have an expanded footprint in Texas and are now on the west coast in California, serving our target market of small to medium-sized businesses.” 

Smith continued, “As we build scale and increase our footprint through the continued implementation of our acquisition strategy, our team delivers on outstanding execution in identifying redundancies and cost savings and integrating operations to improve our efficiencies. Our 3rd quarter financial results do not yet reflect most of the cost synergies from our integration playbook for our most recent acquisitions of Skynet Telecom and NextLevel Internet.  We anticipate realizing these synergies in subsequent quarters that we expect will result in improved operating profitability.  We continue to prove out our business model year over year and quarter over quarter.”

Antonio Estrada, CFO of Digerati, stated, “All of our financial metrics continue to improve and are trending in the right direction. These are highlighted by our improved revenue, gross margin, adjusted EBITDA and operating EBITDA that have all been boosted by our acquisitions and the subsequent financial improvement due to successful integration.  We continue to have our sights set on and remain on a track towards an uplisting to Nasdaq or NYSE American.”

Three Months ended April 30, 2022 Compared to Three Months ended April 30, 2021

Revenue for the three months ended April 30, 2022 was $8.163 million, an increase of $4.412 million or 118% compared to $3.751 million for the three months ended April 30, 2022. The increase in revenue is primarily attributed to the increase in total customers between periods due to the acquisitions of Skynet Telecom in December 2021 and NextLevel Internet in February 2022. Our total number of customers increased from 2,612 for the three months ended April 30, 2021, to 3,963 customers for the three months ended April 30, 2022. 

Gross profit for the three months ended April 30, 2022 was $5.002 million, resulting in a gross margin of 61.3%, compared to $2.225 million and 59.3% for the three months ended April 30, 2021. 

Selling, General and Administrative expenses (excluding legal and professional fees) for the three months ended April 30, 2022 increased by $2.303 million, or 116%, to $4.296 million compared to $1.993 million for the three months ended April 30, 2021. The increase in SG&A is attributed to the acquisitions of Skynet Telecom in December 2021 and NextLevel Internet in February 2022.  As part of the consolidations, the Company absorbed all of the employees responsible for managing the customer base, technical support, sales, customer service, and administration.   

Operating loss for the three months ended April 30, 2022 was $1.626 million, an increase of $1.038 million or 177%, compared to $0.588 million for the three months ended April 30, 2021. The increase in operating loss between periods is primarily due to the increase in legal and audit fees of $589,000 associated with the acquisition of NextLevel Internet in February 2022.

Adjusted EBITDA income for the three months ended April 30, 2022 was $0.557 million, compared to an adjusted EBITDA income of $0.321 million for the three months ended April 30, 2021. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

Of note were the following non-cash expenses associated with the three months ended April 30, 2022. Company recognition of stock-based compensation and warrant expense of $0.028 million and depreciation and amortization expense of $1.540 million. Gain on derivative instruments was $6.827 million for the three months ended April 30, 2022.

Non-GAAP operating EBITDA (OPCO EBITDA) for the three months ended April 30, 2022 improved to income of $0.969 million, excluding corporate expenses, and all non-cash items and one-time transactional expenses, compared to a Non-GAAP operating EBITDA (OPCO EBITDA) income of $0.619 million for the three months ended April 30, 2021.

Net income for the three months ended April 30, 2022 was $3.902 million, an improvement of $16.705 million, as compared to a net loss of $12.803 million for the three months ended April 30, 2021. The resulting EPS profit for the three months ended April 30, 2022 was $0.03, as compared to a loss of ($0.09) for the three months ended April 30, 2021. The increase in net income between periods is primarily due to the gain on derivative instruments of $6.827 million.

On April 30, 2022 Digerati had $2.384 million of cash.

Use of Non-GAAP Financial Measurements

The Company believes that EBITDA (earnings before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used in the cloud communications industry to evaluate companies on the basis of operating performance and leverage. Adjusted EBITDA provides an adjusted view of EBITDA that takes into account certain significant non-recurring transactions, if any, such as impairment losses and expenses associated with pending acquisitions, which vary significantly between periods and are not recurring in nature, as well as certain recurring non-cash charges such as changes in fair value of the Company’s derivative liabilities and stock-based compensation. The Company also believes that Adjusted EBITDA provides investors with a measure of the Company’s operational and financial progress that corresponds with the measurements used by management as a basis for allocating resources and making other operating decisions. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. Non-GAAP operating EBITDA (OPCO EBITDA) is useful to investors because it reflects EBITDA for the core operation of the business excluding corporate expenses, non-cash expenses and transactional expenses. EBITDA, Adjusted EBITDA, and Non-GAAP operating EBITDA are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).   In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

About Digerati Technologies, Inc.

Digerati Technologies, Inc. (OTCQB: DTGI)is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries T3 Communications (T3com.com), Nexogy (Nexogy.com), SkyNet Telecom (Skynettelecom.net) and NextLevel Internet 
(nextlevelinternet.com), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™. 

Forward-Looking Statements

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements such as realizing cost synergies in subsequent quarters that we expect will result in improved operating profitability, remaining on a track towards an uplisting to Nasdaq or NYSE American, and we continue  to prove out our business model year over year and quarter over quarter, are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, our inability to source suitable acquisition targets, failure to execute growth strategies, lack of product development and related market acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.

Investors

The Eversull Group

Jack Eversull 

jack@theeversullgroup.com
(972) 571-1624

ClearThink
Brian Loper

bloper@clearthink.capital
(347) 413-4234

Monday, June 13, 2022

Comtech Telecommunications (CMTL)
Favorable Risk/Reward Opportunity, Upgrading to Outperform with a $12 PT

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.

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

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

3Q22 Results. Revenue of $122.1 million, down 12.4% y-o-y, but was up 1.4% sequentially. We had forecast $122 million. Adjusted EBITDA was $11.2 million, or an 9.2% margin, down from $17.7 million and 12.7% last year, although up from $9.9 million in 2Q22. GAAP loss was $1.68 million, or $0.06 per share versus net income of $792,000, or $0.03 per share in 3Q21. Non GAAP EPS was $0.06 versus Non-GAAP EPS of $0.21 last year. We had forecast a GAAP loss of $4.4 million, or $0.17 per share.

Tough Market Conditions. Comtech is working through one of the most difficult operating environments in memory. Global economic struggles, the COVID pandemic, geopolitical conflict, surging inflation, and ongoing supply chain challenges. We expect these conditions to persist into fiscal 2023….

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.