DivestmentJun 15, 2026, 08:07 AM
Comtech to Sell Satellite & Space Business for $157.5M
AI Summary
Comtech Telecommunications Corp. announced the sale of most of its Satellite and Space Communications business to an affiliate of Gilat Satellite Networks Ltd. for $157.5 million in cash. This strategic divestment, which includes an advance payment of $10 million, will see 65% of net proceeds used to prepay the Credit Facility and 35% for the Subordinated Credit Facility. Concurrently, the company reported a net loss of $(3.5) million on net sales of $106.0 million for the three months ended April 30, 2026, and secured amendments to its credit facilities, suspending certain covenants through July 2027.
Key Highlights
- Comtech agreed to sell most of its Satellite and Space Communications business for $157.5 million in cash.
- Net sales for the three months ended April 30, 2026, were $106.0 million, down from $126.8 million year-over-year.
- Net loss for the three months ended April 30, 2026, was $(3.5) million, compared to net income of $33.9 million in the prior year.
- Net loss attributable to common stockholders for Q3 2026 was $(14.3) million, or $(0.47) per basic share.
- Credit Facility covenants (Net Leverage Ratio, Fixed Charge Coverage Ratio, Minimum EBITDA) suspended through July 31, 2027.
- Subordinated Credit Facility covenants also suspended; warrants issued for up to 625,000 common shares.
- 65% of sale proceeds will prepay the Credit Facility, and 35% will prepay the Subordinated Credit Facility.
- Cash and cash equivalents totaled $28.5 million as of April 30, 2026.