- Foundational Year Focused on Building Infrastructure to Support Significant Growth in 2021 -
DALLAS, March 30, 2021 /PRNewswire/ -- COMSovereign Holding Corp. (NASDAQ: COMS) ("COMSovereign" or "Company"), a U.S.-based developer of 4G LTE Advanced and 5G Communication Systems and Solutions, today reported financial results for the fiscal year ended December 31, 2020.
- Full year 2020 revenues were $9,426,836 driven by sales of DragonWave mobile network backhaul products, the acquisition of Sovereign Plastics and Virtual NetCom, initial test-market sale of certain high-performance after-market models of the Company's intelligent batteries, and a full year of revenue for aerostat products and accessories.
- Gross profit for the year ended December 31, 2020 was $4,830,875, with a gross profit margin of 51%. Gross profit reflects an increased gross profit margin for DragonWave during the year and the inclusion of a full year of operating results for Drone Aviation and most of the year for Sovereign Plastics, which were acquired on November 27, 2019 and March 6, 2020, respectively.
- The Company ended the year with $730,502 in cash. Subsequent to the close of the year, the Company secured approximately $45 million in gross proceeds from capital raised in January and February 2021 and utilized a portion of the proceeds of these offerings to pay off maturing debt and accrued interest which totaled $20.4 million including debt converted to equity.
- Investors can view the complete 10-K filing at www.sec.gov or on the Company's website at https://investors.comsovereign.com/SEC-Filings
"Our fiscal year ended 2020 was focused on readying the business to capitalize on the opportunity of American-made 4G and 5G by integrating and streamlining our existing operations and expanding our capabilities through the additions of Virtual NetCom and Sovereign Plastics," said Dan Hodges, Chairman and CEO of COMSovereign Holding Corp. "Against the many challenges brought on by COVID-19, operationally, we were able to achieve a number of important milestones in 2020 which have laid the foundation for significant growth expected this year. These milestones include opening our new HQ in Dallas, expanding our management teams, advancing development of our unique and patented radio technologies, preparing for our up-listing on Nasdaq and the raising of capital which the Company secured early in the first quarter of 2021."
Looking ahead in 2021:
- Supported by over $43 million in new equity capital raised in the first quarter of 2021, the Company has begun to ramp up production of products including standing-up manufacturing operations at its new 140,000 sq. ft. facility in Tucson, AZ. which will enable to produce its full range of next-gen products internally.
- Starting in the second quarter of 2021, revenues will begin to reflect increasing production and sale of backhaul radio products from DragonWave produced at its contract manufacturing partner, Benchmark Electronics, Inc. There will also be contributions from InduraPower and recent acquisitions including FastBack Networks and Sky Sapience which will be produced in-house in Tucson as well.
- The Company expects a steady production increase of its radio, drone and battery products which will drive increased revenue throughout the second half of 2021, further accelerating into 2022 as in-house manufacturing ramps up as well.
- The Company continues to seek accretive acquisitions that will complement its solution set, further establishing the Company as one of the only U.S.-based telecom hardware and software provider able to deliver end-to-end products and services supporting 4G LTE and 5G networks now being deployed by operators around the world.
- An updated corporate presentation on COMSovereign can be viewed on the Company's website at https://investors.comsovereign.com/Presentations
"My top priorities as CFO are to make sure that the business is supported by an effective and efficient financial organization and to ensure we provide the markets with timely transparency into our operational results. This includes a commitment for scheduled releases of quarterly financial results and investor conference calls commencing with the filing of our fiscal first quarter 2021 10-Q. As we move through the first and second quarters of 2021 where our business and revenues will begin to accelerate, we are dedicated to supporting the needs of our shareholders, customers and partners," added Marty Wade, Chief Financial Officer of COMSovereign Holding Corp.
For more information about COMSovereign, please visit www.COMSovereign.com and connect with us on Facebook and Twitter.
About COMSovereign Holding Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications technology companies that enhance connectivity across the entire data transmission spectrum. Through strategic acquisitions and organic research and development efforts, COMSovereign has become a U.S.-based communications provider able to provide 4G LTE Advanced and 5G-NR telecom solutions to network operators and enterprises. For more information about COMSovereign, please visit www.COMSovereign.com.
Certain statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. Moreover, forward-looking statements in this release include, but are not limited to, the impact of the current COVID-19 pandemic, which may limit access to the Company's facilities, customers, management, support staff, and professional advisors, and to develop and deliver advanced voice and data communications systems, demand for the Company's products and services, economic conditions in the U.S. and worldwide, and the Company's ability to recruit and retain management, technical, and sales personnel. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Steve Gersten, Director of Investor Relations
COMSovereign Holding Corp.
External Investor Relations:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
Media Relations for COMSovereign Holding Corp.:
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SOURCE COMSovereign Holding Corp.