Telos Corporation reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. Total revenue for the three months was $23.8 million, a notable decline from $36.2 million in the same period of 2023. Revenue from services also decreased, falling to $22.2 million from $34.4 million year-over-year. For the nine months ended September 30, 2024, total revenue was $81.9 million, down from $104.3 million in the prior year.
The company's gross profit for Q3 2024 was $3.1 million, sharply lower than $13.0 million in Q3 2023. This decline contributed to an operating loss of $(28.9 million), worsening from $(9.7 million) in the same quarter of the previous year. The net loss for Q3 2024 was $(28.1 million), compared to $(8.7 million) in Q3 2023, resulting in a net loss per share of $(0.39), up from $(0.12) a year earlier. For the nine-month period, the net loss increased to $(43.2 million) from $(27.4 million) in 2023.
The financial downturn was attributed to the completion and ramp-down of programs in the Secure Networks segment, which saw a staggering 66.7% revenue decrease in Q3 2024 compared to the same quarter in 2023. The Security Solutions segment also faced challenges, with a 7.4% revenue decline in Q3 2024, primarily due to reduced revenue from long-term programs.
In response to these financial pressures, Telos initiated a restructuring plan in Q3 2024, incurring $1.4 million in severance and related costs. This plan included the discontinuation of selected solutions, leading to an impairment loss of $6.4 million on capitalized software assets. The total impairment loss on intangible assets for the nine months ended September 30, 2024, was $11.7 million, a significant increase from $0.3 million in the same period of 2023.
Cash and cash equivalents as of September 30, 2024, stood at $69.8 million, down from $99.3 million at the end of 2023. The company reported a net cash used in operating activities of $(15.4 million) for the nine months, a substantial increase from $(3.4 million) in the prior year.
Telos continues to focus on its core areas of cybersecurity and secure networking solutions, with a significant portion of its revenue derived from U.S. government contracts. The company is also navigating a complex regulatory landscape and evolving market conditions, which may impact future performance.
About TELOS CORP
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.