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16 Jan 25. Prescient Edge Corporation (PEC) announced its acquisition of Edge Analytic Solutions (EAS), significantly enhancing the company’s portfolio of intelligence analytics solutions it offers its current and future Government customers. The acquisition combines EAS’s breakthrough analytics technology with PEC’s mature RD&E and C5ISR practice.

“EAS was born out of a need for advanced intelligence tools that focus on the vast amounts of data available today,” said Alexander Granados, Prescient Edge CEO. “We are proud to have helped develop this enterprise into a trusted instrument that aids our nation’s top defenders in making informed decisions, and we are excited to expand our technology solutions as it joins us as a full member of the PEC family.”

Since its establishment in 2019 as a Small Business Administration-approved Mentor-Protégé joint venture, EAS has specialized in advancing the practice of intelligence analysis and creating advanced analytic tools that improve data quality and increase efficient use of data. In today’s world where threats continuously evolve, EAS’s specialties have revolutionized how defense decision-makers access and utilize critical intelligence data.

Within months of its formation, EAS won a prime contract award in the restricted pool of the SIA 3 IDIQ as well as its first task order under that IDIQ. In its five years of existence, it has won 14 task orders with a total contract value of nearly $1bn, supporting vital missions at Space Command (SPACECOM), Army Intelligence (INSCOM) and the Defense Intelligence Agency (DIA), among others. EAS will continue to compete for SIA 3 task orders in the unrestricted pool and for other contract awards across the Defense Intelligence Enterprise (DIE).

The acquisition strengthens PEC’s position in defense intelligence, expanding its capabilities in data science, systems integration, and C5ISR services. PEC also offers intelligence analysis and operational support, including geospatial, scientific, and technical analysis, counterintelligence support, and special mission training.

About Prescient Edge

Prescient Edge Corporation (PEC) is a veteran-owned C5ISR technology and intelligence solutions business dedicated to developing / deploying innovative, AI-driven tools to advance critical national security missions. PEC’s team of experts specializes in full-spectrum intelligence analysis, operational support, and unmanned systems coordination to enhance U.S. government initiatives across land, air, sea, and space. (Source: PR Newswire)

16 Jan 25. Micross Components, Inc. (“Micross” or the “Company”), a leading provider of high-reliability microelectronic product and service solutions for aerospace, defense, space, medical and industrial applications and a portfolio company of Behrman Capital, today closed the acquisition of Integra Technologies (“Integra”). Integra is an Outsourced Semiconductor Assembly and Test (OSAT) post-processing provider focused on high-reliability applications and end markets, headquartered in Wichita, Kansas. The acquisition of Integra further positions Micross as a leader in United States-based OSAT services and further broadens Micross’ portfolio of high-reliability microelectronic services and products.

Integra Technologies is a leading U.S.-based provider of comprehensive semiconductor assembly, testing, and qualification services. With over 40 years of industry expertise, the company specializes in delivering end-to-end solutions that help customers streamline their production processes while ensuring high-quality, cost-effective products. Integra Technologies’ services include die preparation, packaging and assembly, electrical testing, reliability and qualification, and counterfeit detection, all performed in their state-of-the-art facilities located in Wichita, KS and Milpitas, CA. Their commitment to U.S.-based operations ensures faster time-to-market, greater IP security, and reduced complexities compared to offshore suppliers.

Focused on industries such as communications, military, medical, and automotive, Integra Technologies serves clients with highly specialized needs, offering customized solutions for complex semiconductor requirements. The company’s reputation for reliability and expertise has made it a leading OSAT service provider in the U.S., trusted by hundreds of customers looking to bring innovative, high-performance products to market.

Micross’ acquisition – the tenth under Behrman Capital’s ownership and sixth since consummating a continuation fund transaction in February of 2022 – continues to build on the strategic priorities for the Company, namely enhancing Micross’ semiconductor assembly, test and services capabilities. The acquisition also expands Micross’ geographic footprint in the U.S., and broadens the Company’s presence in medical and other high-reliability end markets, better positioning the Company for future growth opportunities.

Vince Buffa, Chairman and CEO of Micross, said, “We are excited to welcome Integra Technologies to the Micross family, as their proven expertise in semiconductor assembly and testing will augment our capabilities and accelerate our ability to deliver cutting-edge solutions to our customers. This acquisition aligns perfectly with our commitment to providing high-quality U.S.-based services and advancing innovation in the semiconductor industry. Together, we look forward to pursuing new business opportunities and expanding our reach in high-growth markets.”

Brett Robinson, CEO and President of Integra Technologies, said, “This is an exciting day for Integra, and we are pleased to join the Micross team because of their high-quality reputation and broad technology portfolio. This strategic development will provide additional opportunities for innovation and advancement.”

Simon Lonergan, Managing Partner of Behrman Capital, said, “Micross’ acquisition of Integra Technologies enhances the combined company’s strategic position in the high-reliability microelectronics market. Together with Integra, the Micross platform will continue to offer a growing and market-leading portfolio of solutions to customers with constantly evolving needs. With Integra’s expertise and U.S.-based capabilities, Micross can deliver even greater value through faster turnaround times, continued high quality, and more reliable solutions. We look forward to continuing to work with management to identify additional opportunities to drive growth at Micross.”

About Micross

Micross is a provider of advanced, high-reliability microelectronic products and services. With broad authorized access to die & wafer suppliers, an extensive portfolio of hi-rel power, RF, optoelectronics, memory, data bus, logic, and SMD/5962 qualified products, and comprehensive advanced packaging, assembly, modification, upscreening, and test capabilities, Micross is uniquely positioned to provide differentiated high-reliability solutions, from bare die, to fully packaged devices including hermetic ICs/MCMs, PEMs, ASICs, FPGAs, and PCBs, to complete program lifecycle sustainment. For more than 45 years, Micross has been a trusted source for the aerospace, defense, space, medical, energy, communications, and industrial markets. For more information about Micross, please visit www.micross.com and follow us on LinkedIn.

About Behrman Capital

Based in New York City, Behrman Capital was founded in 1991 by Grant G. and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The company’s investments are focused in three industries: Defense and Aerospace, Healthcare, and Specialty Industrials. The firm has raised $4.1 billion since inception and is currently investing out of its seventh fund. For more information, please visit www.behrmancap.com.

About Integra

Integra Technologies is the largest U.S. OSAT company providing semiconductor back-end services to companies worldwide. For 40 years, Integra has provided packaging, assembly, and test services to more than 500 customers with complex requirements, such as aerospace, medical, and defense. The employee-owned company’s headquarters is in Wichita, with operations in Wichita and Silicon Valley. www.integra-tech.com

(Source: PR Newswire)

16 Jan 25. SRT – A technology stock gaining momentum.

A global leader in technology used to track maritime vessels has returned to profit and should see earnings surge as a bumper £334m order book is delivered. First-half revenue up from £5.5mn to £25.5m

Pre-tax profit of £2.5m, up from a loss of £4.6m
Four new contracts signed worth £182m
£334m active order book
£1.2bn pipeline of contract opportunities

Aim-traded SRT Marine Systems (SRT:48.5p), a global leader in technology used to track maritime vessels, has announced a return to profit and released a strong trading outlook.

In the six months to 31 December 2024, SRT’s systems business, which provides a sophisticated marine domain awareness (MDA) integrated AI-driven maritime surveillance system to sovereign agencies such as coast guards and fishing agencies, generated revenue of £21mn. This was derived from follow-on and recurring projects with three existing customers, as well as initial milestones on a significant £170mn contract signed in October 2024 that is delivering an integrated maritime surveillance system for the Kuwait government (‘A marine technology company building momentum’, 7 October 2024).

The contract momentum continues to build, too. After the period end, SRT has been awarded a follow-on contract worth $15mn (£12.3mn) for the second phase of a three-phase $40mn project with a Middle East Border Agency. It is expected to start this month. In addition, significant progress is being made towards finalising the inter-governmental project financing for a £140m contract with Indonesian maritime security agency Bakamla. Implementation is expected to commence in the first six months of 2025.

This means that the systems business will have £334mn of active system projects (including £21m delivered in the latest results), all of which are scheduled for implementation over the coming two years. Moreover, some of the contracts have subsequent ongoing support contract periods of between five and 10 years. In addition, chief executive Simon Tucker flags up a £1.2bn pipeline of contract opportunities that should significantly improve revenue and earnings visibility in future years.

It’s worth noting that the group’s transceivers division contributed first-half revenue of £4.5m. This business provides marine navigation safety devices to a global network of more than 5,000 distribution partners who target the commercial and leisure vessel markets, as well as port and waterway authorities. Divisional revenue in the first six months of 2025 could be 50 per cent higher given seasonal demand from the US boating market, as well as the first deliveries of the group’s recently launched NEXUS VHF communications transceiver. Digitisation of waterway navigation, national automatic identification system (AIS) mandates and greater regulation are key drivers of demand.

Last autumn, SRT raised £8.5mn at 35p a share in an oversubscribed equity raise which I advised participating in. At the same time, the group entered into an arrangement with major shareholder Ocean Infinity, a marine technology company specialising in the development and deployment of robotics for large-scale, subsea data acquisition.

Specifically, Ocean Infinity provided SRT with a $21.4m guarantee to enable the group to issue a contract performance bond in support of the $213mn Kuwait contract. SRT expects to replace the guarantee through a combination of its own resources and the UKEF export guarantee programme in due course. Excluding the $21.4m cash held in escrow in support of that contract, SRT held gross cash of £4.5mn at the half-year-end and had £12.3mn outstanding on a three-year secured loan note facility which carries an interest rate of 8-12 per cent, and an equipment loan of £4mn, which has an interest rate of 4 per cent.

Although house broker Cavendish has yet to release earnings forecasts, SRT should be on course to deliver more than £100mn of revenue in the 2025-26 financial year when the Kuwait and Indonesian contracts are both up and running.

Of course, overheads will rise, too, as these huge contracts are implemented. However, a gross profit of £36n-£38m on that level of revenue seems achievable to underpin an operating profit of around £20mn. SRT has a market capitalisation of £121mn, so my financial models indicate that the group is being valued on less than seven times my operating profit estimate to enterprise valuation for the 2025-26 financial year. That’s a modest multiple for a high-growth business and one that suggests my 75p target price could prove conservative. Buy.

(Source: Investors Chronicle)

16 Jan 25. Rcapital sells Trac Precision Solutions following highly successful return to growth and profitability. Private investor, Rcapital, has sold Crewe-based Trac Precision Solutions Ltd (TRAC), which designs and manufactures precision engineered engine parts that maximise engine performance, efficiency and reliability for the defence and aerospace sectors, to PTC Industries Ltd, a leading player in the engineering sector based in India. This follows a highly successful return to profitability and growth for Trac.

Rcapital acquired Trac in 2022 from its previous US corporate and private equity owners following a period of underperformance and established it as an independent entity. Rcapital worked closely with the existing management team led by Liam Bevington, Managing Director, to undertake a comprehensive reconfiguration of all aspects of its operations and introduce a new corporate identity to underline its newfound independence.

Rcapital also facilitated significant investment in innovation with major machinery upgrades. Over the past two years, Trac has continued to serve its blue-chip client base thanks to operational excellence and best in class engineering and has secured significant new orders. As a result, the business has delivered sustainable revenue growth and profitability.

Ashley Reek, Partner at Rcapital, commented: “This has been a fantastic success story for both Trac and Rcapital. It is also a prime example of our growing track record in successful corporate carve-outs. We saw the potential in Trac – not just in untangling the complexities of separating it from its previous owner, but in its long-term future.

“Central to this success was recognising Liam Bevington’s leadership potential within the senior team. His vision and drive to grow the business stood out, and we supported him with expert operators to navigate the challenges and deliver transformation. Today, Trac is thriving, with a clear path ahead for sustained growth.”

Liam Bevington, Managing Director of Trac Precision Solutions, said: “We are proud of what we have accomplished under Rcapital’s two-year stewardship. The team is extremely skilled at what they do and worked with us in a collaborative way to help us turn the business around, trusting our industry expertise and knowledge. Rcapital empowered us to make decisions that would help drive the business forward.”

“Now Trac is extremely well-placed for the future. It is a robust, agile and sustainable business which has the full support of its new owner, PTC Industries, who are committed to taking it to the next level.”

Rcapital has a strong track record in the aerospace, defence and precision engineering sectors with its investments in FGP, Bromford Precision Solutions, Nasmyth Group and Surface Technology International.

Rcapital was advised by Browne Jacobson LLP (Legal) and Kroll (Corporate Finance).

15 Jan 25. Hive Systems, a leader in cybersecurity innovation, announced today the launch of its newest business line, Hive Systems Defense Solutions. This team will focus on providing expert guidance and services around Cybersecurity Maturity Model Certification (CMMC) including readiness and remediation, and upon authorization by the Cyber-AB, will conduct CMMC certification assessments as a Certified Third-Party Assessment Organization (C3PAO). To lead this strategic expansion, Hive Systems is proud to promote Katie Dodson to President of Hive Systems Defense Solutions.

This new business line demonstrates Hive Systems’ commitment to addressing the critical cybersecurity compliance needs of defense contractors and organizations working with the U.S. Department of Defense (DoD). Hive Systems Defense Solutions will empower clients to meet CMMC requirements by offering tailored services, including comprehensive readiness assessments, remediation planning, and official CMMC assessments.

Hive Systems launches Hive Systems Defense Solutions led by Katie Dodson to deliver expert CMMC services and assessments

Katie Dodson’s appointment as President brings over a decade of cybersecurity expertise to the forefront of Hive Systems Defense Solutions. Katie’s impressive career includes contributions to both the public and private sectors, including Fortune 500 companies, the Department of the Air Force, the Department of Health and Human Services (HHS), and four years of distinguished service with the Defense Cyber Crime Center (DC3) under the DoD. Through her extensive experience with cybersecurity risk assessments and compliance frameworks, as well as threat intelligence analysis for the DoD, Katie brings a unique understanding of the threats to defense contractor networks hosting government data and the cybersecurity controls implemented to protect them.

Katie holds a Master of Science in Cybersecurity from the University of Maryland Global Campus and a Bachelor of Science in Accounting from the University of Maryland. She also holds numerous certifications including Certified Information System Security Professional (CISSP), Certified Information Systems Auditor (CISA), Certified CMMC Professional (CCP), and Lead Certified CMMC Assessor (Lead CCA).

Meeting the Needs of the United States

Hive Systems Defense Solutions will provide a comprehensive suite of services aimed at ensuring defense contractors achieve and maintain compliance with CMMC standards. Once authorized as a C3PAO, the team will conduct official CMMC certification assessments, ensuring defense contractors can secure and retain valuable DoD contracts. This strategic focus complements Hive Systems’ broader mission to provide smarter cybersecurity solutions for complex industries.

“Expanding Our Impact”

“We are thrilled to launch Hive Systems Defense Solutions and have Katie at the helm of this vital initiative,” said Alex Nette, CEO and Co-Founder of Hive Systems. “The growing demand for CMMC compliance in the defense sector aligns with the expertise of Hive Systems and Katie’s unparalleled leadership in cybersecurity. This new division solidifies our position as a trusted partner for defense organizations navigating compliance challenges.”

Katie Dodson added, “I’m honored to lead Hive Systems Defense Solutions. Our mission to deliver exceptional CMMC preparation and assessment services empowers defense contractors to succeed in a highly regulated and competitive environment. I’m excited to lead our talented team to ensure our clients achieve compliance and remain resilient to evolving threats.”

More information can be found at www.hivesystems.com/cmmc

About Hive Systems

Hive Systems provides smarter cybersecurity services with their trusted experts while delivering leading cybersecurity products with Audora, Derive, and QryptoCyber. Since 2018, Hive Systems has partnered with businesses to design tailored cybersecurity strategies that enhance existing investments and mitigate risks effectively. Through Hive Helps, the company extends pro bono services to qualified non-profit organizations and communities to ensure that limited resources don’t stand in the way of social progress. Hive Systems is headquartered in Richmond, Virginia and serves clients across the globe. (Source: PR Newswire)

16 Jan 25. SRT MARINE SYSTEMS PLC (AIM: SRT) (“SRT” or the “Company”) Trading Update – H1 FY25.

SRT Marine Systems plc (‘SRT’), a global provider of maritime domain awareness systems and technologies for security, safety and environmental protection is pleased to provide a trading update for the 6 month financial period ending 31st December 2024 (“H1 FY25”).

* H1 FY24 refers to the six month period ending 30 September 2023

Highlights

Four new systems contracts signed worth £182m, three from existing customers, one from a new customer
Post-period end, formal notice to proceed on further systems contract worth £12m
New NEXUS transceiver launched to dealers in November 2024
Over-subscribed placing of £8.5m completed to bolster balance sheet

H1 Financial and Operational performance

Unaudited group revenues for the first half are expected to be £25.5m, generating a profit before tax of approximately £2.5m. Gross cash balances as at 31st December 2024 were approximately £4.5m, excluding $21.4m held in escrow to support the provision of a systems project performance guarantee.

Our transceivers business which provides marine navigation safety devices generated revenues of approximately £4.5m. Sales were generated from our global network of over 5,000 distribution partners who target commercial and leisure vessel markets as well as port and waterway authorities with our specialist DAS product range. In November 2024 we officially launched our new NEXUS VHF communications transceiver to our distribution network and expect to commence shipments during the second half of this financial year.

In H2 FY25 we expect increased seasonal driven demand from the retro-fit and new-build delivery leisure boat market and to commence shipments of the new NEXUS radio systems. In the commercial vessel market, existing and new regulations that require vessels to fit and operate AIS transceivers will continue to drive demand, alongside several new national scale vessel fit mandates that are expected to commence during 2025. And the growing trend to digitise waterway navigation will see the continued purchase of our DAS systems.

Our systems business which provides the sophisticated SRT-MDA integrated Ai driven C5iSR maritime surveillance system to sovereign agencies such as Coast Guards and Fishing Agencies generated revenues of approximately £21m. This was derived from four separate customers, three of which are existing customers and came from follow on and recurring projects and the fourth was a new customer for which a system project worth £170m was signed in October 2024. During the period our systems business signed a total of four new system contracts worth approximately £182m, and post-period end received a formal notice of award for a further follow on contract worth £12m which is expected to commence this month upon completion of contract formalities. This is in addition to significant progress being made towards finalising the inter-government project financing for our £140m contract with Bakamla in Indonesia, with implementation now expected to commence in H2 FY25. As such going into H2 FY25 our systems business will have £334m of active system projects (of which approximately £21m worth has already been delivered in H1 FY25) all of which are scheduled for implementation over the coming 2 years, and some of which have subsequent ongoing support contract periods of between 5 and 10 years.

In addition to these contract conversions, driven by the global macro-trend of sovereigns wanting to digitise and dramatically enhance their understanding, oversight and management of their marine domains, we have a pipeline of specific new system opportunities from existing and new customers worth up to £1.2bn. We expect to continue to convert and grow this pipeline as the market for maritime domain awareness continues to develop.

Simon Tucker, SRT CEO commented; “This is a solid start to the year. The combination of our transceivers business, a £334m active contract book from multiple sovereign customers, each with long term system development plans and a £1.2bn pipeline of further prospects gives us significantly improved visibility over future financial performance. Both of our businesses are now well established and our future is underpinned by our portfolio of sophisticated technology and products, an established market position, and a global MDA market at the beginning of its growth curve.”

16 Jan 25. US defence industry braces for tech shake-up under Trump. American defence executives are braced for a Donald Trump return to the White House that could be more disruptive than his first term. (Source: Google/FT.com)

15 Jan 25. US defense contractor tells Musk panel that Pentagon bureaucracy is the problem. The CEO of one of the world’s biggest defense contractors, L3Harris Technologies, told President-elect Donald Trump’s government efficiency panel in a letter on Wednesday that the Pentagon’s huge contracting system is too slow and bureaucratic to meet threats posed by China and Iran and needs to be reformed. The letter, which was seen by Reuters, makes Melbourne, Florida-based L3Harris (LHX.N)one of the first big U.S. corporations to directly lobby Trump’s Department of Government Efficiency, calling for reforms that could boost corporate profits and speed Pentagon action. Companies normally pay lobbyists ms of dollars to advocate on their behalf. L3Harris ranks as the 10th largest global defense firm by revenue, with more than $15bn in annual defense sales. Trump created the efficiency panel, dubbed DOGE, following his November election, naming bnaire entrepreneur and Tesla CEO Elon Musk and former Republican presidential candidate Vivek Ramaswamy as its co-heads, with the aim to dismantle bureaucracy, cut regulations and restructure agencies. (Source: Reuters)

14 Jan 25. Dutch VC firm Keen raising 125 m euros for European defence fund. Keen Venture Partners said on Tuesday it was raising 125 m euros ($128m) for a fund focused on providing additional capital for growth to European defence startups.

“The changed geopolitical landscape has created a crucial need for Europe to become more self-sufficient at defence and safety,” partner Alexander Ribbink of the Amsterdam-based venture capital firm said in a statement.

The new fund will offer Series B funding – larger rounds of funding typically led by venture capitalists or growth equity investors – to firms in European NATO member countries, with a focus on drone and radar technology. Keen is an investor in Avalor AI, which makes software used to oversee complex military missions involving drones and is working with the Netherlands’ Ministry of Defence. Other Keen investments include cyber-threat intelligence firm EcleticIQ and radar perception firm PercivAI. ($1 = 0.9750 euros) (Source: Reuters)

14 Jan 25. Fincantieri has completed the acquisition of Leonardo’s Underwater Armaments and Systems (UAS) business line, finalised through the purchase of WASS Submarine Systems S.r.l. This strategic transaction enhances Fincantieri’s leadership in the naval defence sector and underwater domain. As outlined in the preliminary agreement with Leonardo signed on May 9, 2024, and in accordance with the disclosed terms, Fincantieri has today paid 287 m euros, representing the fixed portion of the acquisition price. The total Enterprise Value of UAS, including the fixed component already paid, could reach up to 415m euros, subject to standard price adjustment mechanisms. The acquisition integrates advanced expertise in underwater acoustic technologies and weapon systems. It strengthens Fincantieri’s capabilities in both military and civilian applications, particularly in critical infrastructure protection and cutting-edge maritime solutions.

Pierroberto Folgiero, Fincantieri’s CEO, commented, “The acquisition of WASS Submarine Systems represents a decisive step for Fincantieri in strengthening its technological leadership in the underwater domain, a crucial sector for the future of maritime security and technology. By integrating advanced expertise in acoustic and underwater weaponry systems, we have expanded our ability to develop innovative solutions for naval defence while ensuring the protection of critical underwater infrastructure, such as submarine cables and offshore energy facilities. This confirms our goal to lead the evolution of advanced ship technologies, responding to global challenges with entrepreneurship and strategic vision.”

13 Jan 25. Sentient Digital, Inc. (SDi), a leading provider of defense technology and engineering services, has acquired Maritime Surveillance Associates, Inc. (MSA), a developer of signal processing and mission reconstruction software for the U.S. Navy. The acquisition enhances SDi’s capabilities in SONAR and acoustics products for the U.S. Navy and partner nations, adding to its expertise in digital signal processing, mathematical modeling, and mission-critical software for undersea warfare (USW), anti-submarine warfare (ASW), and security operations.

The acquisition positions SDi to focus on key growth areas, including cloud-based advanced analytics, maritime security, and Foreign Military Sales (FMS). “We are excited about the opportunities this acquisition brings,” said Chris Mobley, President of SDi. “MSA’s technology perfectly complements our existing capabilities, strengthening our ability to deliver innovative solutions to the U.S. government and its allies. The evolution of our applications to leverage cloud architectures marks a significant step forward in supporting next-generation platforms and providing advanced data services for downstream customers.”

About Sentient Digital, Inc. (SDi):

Sentient Digital, Inc. (SDi) is a trusted prime contractor for the U.S. Department of Defense, specializing in cutting-edge systems engineering, integration, and R&D for the U.S. and partner nations. SDi’s expertise spans C4ISR, Air ASW, acoustics, and advanced processing systems. Its mission is to contribute to a safer tomorrow by strengthening defense and security capabilities across multiple domains. Learn more at www.sdi.ai or follow us on LinkedIn.

About Maritime Surveillance Associates, Inc. (MSA):

Maritime Surveillance Associates, Inc. (MSA) is a leader in signal processing and mission reconstruction software, providing specialized acoustics processing and advanced mission capabilities to the U.S. government. (Source: PR Newswire)

13 Jan 25. 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 $115.8m;
Net bookings of $127.9m, representing a book-to-bill ratio of 1.10x;
Gross margin of 12.5%;
Operating loss of $129.2m, net loss of $148.4m and Adjusted EBITDA loss (a Non-GAAP measure) of $19.4m;
Funded backlog of $811.0m; and
Revenue visibility of approximately $1.6bn.

Business Highlights

Awarded a sole source contract valued at over $50.0m by the U.S. Navy Information Warfare Systems Command;
Awarded a contract renewal valued at over $30.0m 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 $19.0m 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 $115.8m 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 $127.9m 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 $14.5m, or 12.5% of consolidated net sales, as compared to $47.9m, 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 $11.4m 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 $129.2m, as compared to operating income of $2.1m for the prior year period, and net loss in the first fiscal quarter was $148.4m, as compared to $1.4m in the prior year period. This was primarily due to a non-cash goodwill impairment charge of $79.6m in the S&S segment; $17.9m of restructuring costs (including the aforementioned inventory write down); and a non-cash charge of $17.4 m 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 $19.4m in the first fiscal quarter, compared to Adjusted EBITDA income of $18.4m in the prior year period.

Backlog was $811.0m as of October 31, 2024, compared to $798.9m 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 $1.6bn at the end of the quarter.

Satellite and Space Communications Segment Commentary

Net sales in the S&S segment were $58.9m 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 $58.4m 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 $16.0m of funded orders from the U.S. Army calling for the supply of VSAT equipment and related services;
Receiving more than $8.5m in incremental funding related to the Company’s U.S. Army EDIM contract;
Awarded over $6.0m in funded orders from a new international customer for certain frequency-type power amplifiers;
Awarded a production order, valued in excess of $5.0 m, 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 m, 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 $2.0m);
Awarded approximately $2.0m 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 $118.8m in the first fiscal quarter, compared to operating income of $10.1m in the prior year period, and net loss in the first fiscal quarter was $119.4m, as compared to net income of $9.3 m for the prior year period. This was driven by a non-cash goodwill impairment charge of $79.6m; a non-cash charge of $17.4m to fully reserve for an unbilled receivable contract asset related to an international customer and reseller of the Company’s troposcatter solutions; $13.8m of restructuring costs (including the aforementioned non-cash charge related to inventory write-downs); $3.0m of amortization of intangibles; and lower net sales and gross profit in this segment.

Adjusted EBITDA loss in the S&S segment was $21.1m in the first fiscal quarter, compared to Adjusted EBITDA of $15.1m 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 $17.4m 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 $278.4m 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 $56.9m 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 $69.4m 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 $30.0m, for critical enhanced 911 call routing services;
Awarded a large, multi-year contract, valued at over $19.0m, 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 $2.0m, for an NG-911 Guardian call handling solution;
Awarded over $1.0m in funding to continue servicing certain PSAPs in a New England state; and
Awarded over $1.0m of funding related to an NG-911 deployment in South Carolina.

The T&W segment recorded operating income of $5.3m in the first fiscal quarter, an increase of 31.6% compared to the prior year period, and net income of $5.3m in the first quarter, an increase of 28.9% compared to the prior year period. Adjusted EBITDA was $11.0m, 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 $532.6m 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 $32.3m, $8.2m and $9.9m, 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 $26m in annualized labor costs. Severance associated with such actions approximated $2.8m, of which $1.1 m will be expensed in the second quarter of fiscal 2025.

Liquidity

Comtech’s cash and cash equivalents were approximately $30m as of both October 31, 2024 and January 10, 2025. As previously disclosed, on June 17, 2024, the Company entered into a new $222.0m 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 $25.0m subordinated credit facility.

As of quarter end, aggregated outstanding debt under these two credit facilities was approximately $225m, 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.

13 Jan 25. 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 business will 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. The Comtech 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 m 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.

“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.

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.

10 Jan 25. XTI Aerospace, Inc. (Nasdaq: XTIA), (“XTI” or the “Company”), a pioneer in advanced aircraft design, today announced the closing of its previously announced best-efforts offering of 1,454,546 shares of common stock, priced at-the-market under Nasdaq rules at an offering price of $13.75 per share, on a post 1-for-250 reverse stock split basis. Gross proceeds from the offering were approximately $20,000,000, before deducting the placement agent’s fees and other offering expenses. All the shares in the offering were offered by the Company.

The Company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.

ThinkEquity acted as sole placement agent for the offering.

The securities were offered and sold pursuant to the Company’s currently effective shelf registration statement on Form S-3 (File No. 333-279901), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 31, 2024 and declared effective on June 18, 2024. The offering was made by means of a prospectus supplement and prospectus which have been filed with the SEC and available on the SEC’s website at www.sec.gov. You should read the applicable prospectus supplement and prospectus for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting the SEC website at www.sec.gov. Alternatively, you may obtain copies by contacting ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004. (Source: PR Newswire)

13 Jan 25. Filtronic plc Trading Ahead of Expectations. Filtronic plc (AIM: FTC), the designer and manufacturer of products for the aerospace, defence, space and telecoms infrastructure markets, is pleased to announce that order intake for delivery in the current financial year is at a higher rate than anticipated. Consequently, the Board now expects to deliver stronger results for the full year than the recently upgraded market expectations.

07 Jan 25. Gilat acquires Stellar Blu—$9m in SkyEdge orders—$18+m in IFC orders. Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT) has closed their acquisition of Stellar Blu Solutions LLC, a U.S.-based provider of next-generation SATCOM terminal solution such as the Sidewinder terminal. Gilat expects the firm’s annual revenues from Stellar Blu to range from between $120 and $150m in 2025, based on Stellar Blu’s robust backlog. In addition, the acquisition is expected to be accretive on non-GAAP results for 2025. Furthermore, the Company estimates that, once Stellar Blu reaches its target manufacturing capacity, which Gilat expects will occur during the second half of 2025, Stellar Blu’s EBITDA margin is expected to be above 10%.

The acquisition’s consideration at closing was $98m in cash, as adjusted. Although the Company had over $115m in Net Cash at the end of 2024, the Company used a new secured credit line of $100m from HSBC Bank USA and Bank Hapoalim to fund $60m of the consideration paid at closing. The remaining $40m, from the secured credit line, along with the Company’s resources, is expected to be called upon and cover potential earn-out payments. The three year loan will bear interest at a rate of SOFR plus 2.6% to 3.35%.

Funding this acquisition through a combination of the Company’s resources and a secured credit line will provide Gilat with additional flexibility given the opportunities in the market.

The consideration payment in connection with the acquisition may increase by up to an additional $147m in cash, conditioned upon the acquired business achieving operational and strategic business milestones, during the first two years that follow the signing of the agreement.

“This acquisition is a pivotal step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market,” said Adi Sfadia, Gilat’s CEO. “We expect Stellar Blu’s cutting-edge technologies, combined with Gilat’s advanced IFC solutions to position us as a market leader for both commercial and business aviation, as well as adjacent high-end mobility markets that are ideal for Electronically Steered Antenna (ESA) applications. With the increasing demand for free, seamless, high-quality in-flight Wi-Fi and Stellar Blu’s pioneering expertise in multi-orbit LEO and GEO IFC solutions, this acquisition enhances Gilat’s ability to meet the most demanding service level agreements in the industry, opening up new growth opportunities in aviation and beyond. We expect to ship hundreds of Stellar Blu’s Sidewinder terminals during the upcoming quarters.” (Source: Satnews)

11 Jan 25. Hadean to cut ties with blacklisted Chinese tech giant, urgently seeks new investors after Pentagon blocks US officials from dealings with Tencent.

A leading British defence start-up is scrambling to cut ties with a Chinese investor that was last week blacklisted by the Pentagon.

Hadean, which makes artificial intelligence (AI) and simulation tools used by the Ministry of Defence and Nato, is urgently seeking new investors to replace Tencent.

The Chinese technology giant was last week placed on a Pentagon blacklist by US defence officials, which labels Tencent a “military” company.

The US said the designation was aimed at “highlighting and countering the People’s Republic of China’s military-civil fusion strategy”.

It blocks US officials from having dealings with Tencent from next year.

Hadean said it was “in the process of replacing Tencent as a shareholder” given “the geopolitical-situation has changed since their investment”.

Tencent holds a roughly 5pc stake in the business, according to Companies House documents.

Hadean previously raised $30m (£24m) from investors including Tencent, the government’s Future Fund and In-Q-Tel, an investment firm backed by America’s CIA. (Source: Daily Telegraph)

10 Jan 25. Astronics Corporation Announces Preliminary Unaudited Revenue for Fourth Quarter 2024 and Initiates Revenue Guidance for 2025.

Preliminary unaudited fourth quarter revenue was $208m to $210m
Full year 2024 preliminary unaudited revenue was approximately $796m, an increase of 15.5% over 2023
Initial 2025 revenue guidance established at $820m to $860m

Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense and other mission critical industries, announced its fourth quarter 2024 preliminary unaudited revenue was approximately $208m to $210m which was the upper end of the Company’s guidance range. At the midpoint of this announced range, preliminary revenue was up 7.0% over the prior-year period and up 2.6% over the trailing third quarter. Full year preliminary unaudited revenue for 2024 was approximately $796m, up 15.5% over the prior year.

Preliminary bookings in the quarter were $199m, bringing orders for the full year to approximately $811m.

The Company also provided preliminary revenue expectations for 2025 of $820m to $860m representing an increase of approximately 6% over 2024 at the mid-point of the range.

Peter J. Gundermann, Chairman, President and CEO, commented, “We ended the year on a strong note despite sluggish OEM production rates and the Boeing strike. We have achieved average annual revenue growth of over 20% the last three years and have finally returned to pre-Covid revenue levels. We expect 2025 will be another year of solid growth, though more modest, which will allow us to focus on expanding margins through the year and strengthening cash flow.”

The preliminary unaudited revenue result for the fourth quarter and full year 2024 presented herein are based on information available to management as of the date of this release. These preliminary unaudited results are subject to changes, that may be material, in connection with completion of the Company’s standard year-end closing procedures and the completion of our independent registered public accounting firm’s year-end audit.

Other Updates

The damages trial judgment against the Company related to the ongoing patent infringement case in the U.K. has not yet been issued. The Company expects the judgment to be issued early this year, but does not have specific information regarding timing. In addition, depending upon the outcome, the Company expects to appeal if permitted by the U.K. High Court of Justice.

Deliveries to Boeing following the end of the strike have been slowly resuming at a relatively low rate. (Source: BUSINESS WIRE)

10 Jan 25. Anduril Acquires Radar and Command-and-Control Businesses of Numerica Corporation. Acquisition Brings Radar Development in House; Bolsters Anduril’s Air & Missile Defense Solutions. Anduril is acquiring the Radar and Command and Control businesses of Numerica Corporation. This transaction expands Anduril’s mission systems solutions to include advanced signal processing and tracking algorithms and software as well as advanced radar systems to bolster Anduril’s suite of air and missile defense capabilities. By integrating Numerica’s radar and battlespace awareness systems into the Anduril Lattice platform — a unified system connecting sensors, effectors, and systems — Anduril will deliver solutions designed to operate effective full force combat operations. Founded in 1996, Numerica Corporation specializes in ballistic missile defense systems, air defense sensors like compact radars, and advanced battlespace awareness and command and control software. These capabilities will now become part of Anduril’s suite of mission systems and advanced command and control solutions. Numerica’s proprietary radar technology, including its Spyglass and Spark radars, is designed for short-range air defense and vehicle protection missions and is actively deployed by the U.S. Department of Defense. Numerica’s Spyglass and Spark radars will join Anduril’s existing family of automated active and passive sensing solutions — including Wisp, Pulsar and Iris — providing warfighters with low-cost, mass-producible, autonomous sensing, imaging, and targeting capabilities for a variety of critical missions, including air defense, missile warning, and counter-intrusion. Anduril will continue to invest in radar development efforts and plans to manufacture Spyglass, Spark, and future radar products at its Arsenal-1 hyperscale factory as production scales up. Numerica’s flagship Mimir command and control enabling software will also be incorporated into Anduril’s portfolio of mission-centric software capabilities. Mimir introduces advanced tracking, track correlation and theater-wide fusion capabilities, complementing Anduril’s Lattice AI-powered platform to deliver real-time solutions that improve situational awareness, decision-making, and fire control for warfighters. Numerica’s sensor fusion software is a critical component of priority U.S. air defense programs, and Anduril will continue to deliver those mission-critical capabilities on behalf of our warfighters and our industry partners. The Numerica team brings expertise in advanced mathematical algorithms, scientific computing, and hardware engineering, which will strengthen Anduril’s focus on air defense, missile defense, and vehicle protection. This acquisition reflects the shared goal of providing warfighters with effective tools to ensure mission success in complex and dynamic environments. (Source: ASD Network)

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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR).

For more information visit www.tcibr.com and www.enterprisecontrol.co.uk

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