SAN FRANCISCO, June 21, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Comtech Telecommunications Corp. ( CMTL) investors who suffered substantial losses to take action by submitting your losses here.
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Comtech, a Melville, Long Island provider of next-generation 911 technology, faces heightened financial uncertainty after announcing another delay in filing its quarterly financial statements on June 10, 2024. This latest development adds to a string of negative events that have cast a shadow over the company’s future.
Ongoing Refinancing Efforts Cited for Delay
In its June 10 filing with the SEC, Comtech attributed the delay to its ongoing efforts to refinance its credit facility and complete reporting requirements related to goodwill and “going concern” considerations. These factors prevented the company from filing its quarterly report for the period ended Apr. 30, 2024, on time. While Comtech expects to file within a five-week grace period allowed by the SEC, the delay raises further concerns about the company's financial health.
Previous Turmoil and Investor Anxieties
This recent development follows months of turmoil for Comtech. Under former CEO Ken Peterman, the company implemented a “One Comtech” strategy that initially yielded revenue growth. But concerns emerged in Dec. 2023 when Comtech’s earnings report raised a “going concern” flag and revealed a depleted credit line nearing expiration.
Analyst worries further escalated due to Comtech’s use of “unbilled receivables,” an accounting practice that some viewed as aggressive. These anxieties led to a significant stock price decline in Dec. 2023.
The situation worsened in Mar. 2024 with the firing of Mr. Peterman and a delay in filing quarterly financial statements. The company’s second-quarter results, released under interim leadership that same month, fell short of expectations, triggering another stock plunge. These events culminated in a legal investigation by Hagens Berman into potential securities violations.
“The repeated delays in filing financial statements and the ongoing financial struggles at Comtech are deeply concerning,” said Reed Kathrein, a partner at Hagens Berman. “Our investigation into potential securities violations is ongoing, and we are committed to protecting the rights of investors who may have been harmed by misleading information.”
If you invested in Comtech Telecommunications and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Comtech Telecommunications investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
