DALLAS, April 22, 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 issued the following business update
from Dan Hodges, Chairman and
CEO:
To Our Fellow COMSovereign Stakeholders:
Over the last several months many notable developments have
occurred at COMSovereign, and I am writing to you now to update you
on the business. Supported by the raise of over $43 million completed in January and February, we
are now entering the next growth phase of our strategic plan – the
ramp up of commercial production – a stage for which our team has
spent the past 18 months preparing.
For nearly a year and half, our energies were focused on
assembling and integrating the operations of our various business
units, conducting critical testing and evaluation of our advanced
technologies, and, most importantly, building a world-class
leadership team. Together, we worked to lay the foundation for a
business that can capitalize on the opportunities we see in the
market for a true, end-to-end domestic provider of key 4G LTE and
5G NR enabling technology. I am proud to say that we are now
beginning to see the fruits of this labor.
In this update, I want to share developments underway in
production that we are confident will help us to realize the
tremendous unrealized value that exists in what we have built.
- Just 18 months ago, our principal operating unit,
DragonWave, was operating with insufficient funds to invest
in R&D and production. During this period, we were experiencing
rising demands from our installed base of over 700+
telecommunications network customers for new and upgraded radios
required to meet the surging demand for wireless connectivity in
their networks. However, we could not support those customers that
were looking to invest in the modernization of their networks as
they made their initial moves towards 5G. Without robust production
lines repositioned and operating, we made the decision not to
accept any P.O.s that we were not able to fill within 45 days. Now,
our manufacturing lines at Benchmark, which produces our DragonWave
Harmony Enhanced and Harmony MC radios, are up and running with
increasing capacity monthly. This should allow us to accept a
steadily increasing number of P.O.s from customers, which should
directly contribute to steady revenue growth going forward.
Although we anticipated significant customer interest once
production resumed, during the first quarter, we were not yet
equipped for the response we received. Radio hardware demand is
high, and we are in the process of bringing our production
capabilities online to meet the needs of our customers over the
course of the year. This demand is coming from large existing and
new domestic customers such as Windstream, other WISPs ("Wireless
Internet Service Providers") and Tier 1 network operators in the US
and in international markets such as Mexico.
- At Fastback, production at the contract manufacturer
where its radios are currently manufactured, is also ramping up as
production runs are being completed and product has been, and
continues to be, shipped. Incremental increases in capacity over
the next 60-90 days will enable us to meet increased demand we are
seeing in this segment of our business. Here too, increasing
production capabilities will directly contribute to our revenue
growth going forward.
- We believe the initial radio orders we secured over the past 30
days and the increasing number of sales inquiries and pricing
requests we are receiving almost daily, clearly indicate a steep
demand curve for both our DragonWave backhaul products and Fastback
5.8 MHz microwave radios. This demand is especially evident in
large market segments, such as with WISPs, where customers require
superior wireless performance and reliability. Sales to end-use
customers over the past 30 days include ABC, 123 Net, CommTel,
Execulink Telecom, the FAA, General Dynamics, Motorola, Nextera,
Rogers Media, Saab, T-Mobile and Wavecom among others.
- The first run of our advanced Polaris line of advanced
radios is expected for release to commercial customers in late
3rd quarter (slightly ahead of schedule). Polaris radios
are expected to deliver significantly higher performance due to the
doubling of capacity as a result of our Lextrum subsidiary's
In-Band-Full-Duplex feature, and another 30-50% increase due to our
ability to transmit a simultaneous, discrete, and transparent data
path within a wireless signal utilizing Transpositional Modulation
waveforms. We believe Polaris' performance advantages in the market
will be enhanced further through our proposed Innovation
Digital acquisition, which is expected to provide us with
significant new technical capabilities once reserved only for
military and government customers. We believe these technologies
and valuable, legally defensible IP, gives us an even clearer
advantage over potential competitors.
- One important investment we made following our raise of growth
capital earlier this year was the purchase of a 140,000 sq. ft.
manufacturing facility in Tucson,
Arizona. This facility will serve as the main production
center for our advanced DragonWave and VNC radios, InduraPower's
intelligent power supplies and our aerial platform products. The
Tucson manufacturing facility and
lines are progressing ahead of schedule, with the space for
InduraPower fully renovated. Production is online for the current
generation of battery units with an expectation to launch
production of our next-gen power supplies in the 3rd
quarter.
- The renovation of space in our Tucson facility for our drone operations is
underway with Sky Sapience HoverMast unit production slated
to begin in late May which should allow us to meet domestic demand
from both commercial and governmental customers. Until then, sales
will be filled by our factory in Israel. Sky Sapience's Israel-based facility is still producing and
advancing new features and disruptive technologies via their
dedicated research and development arm. We believe these features
are of high interest to government customers.
In addition, we believe the communications platform capability
established through integration of an entire LTE network system
sourced completely from within COMSovereign's product portfolio
and engineering ranks, deployed on our Drone Aviation and Sky
Sapience aerial platform products, is finding acceptance by both
mobile network operators and governmental agencies.
Domestic production capability is one of the foundational
elements of our long-term plan and directly supports our corporate
growth strategy and mission to be the recognized leader in
US-sourced telecom network equipment. To achieve our mission, we
have a two-pronged approach: 1) organically build from within, or
2) acquire existing solutions. Our strategic approach to
acquisitions demands that each potential acquisition must not only
deliver incremental revenue, existing customers, and talent, but
must also add technical capabilities that we could not otherwise
realize. We are disciplined in our approach to growth, and we are
committed to continuing to follow this strategy. It is important to
note that in all our prior acquisitions, the talented founders and
staff have not only made long-term investments in our future
through compensation in restricted shares, but most have become
integral members of our team, overseeing key facets of our
business. This commitment is a strong testament to a shared vision
of the many opportunities we have ahead of us.
In closing, over the coming weeks and months, we intend to
continue our efforts to communicate our progress on our growth
path, including sales, production, and material news developments.
We intend to host investor conference calls and continue engagement
with the investment community and look forward to providing further
updates and to sharing our progress as we realize the vision of
American Made 5G.
Sincerely,
Daniel Hodges
Chairman and CEO
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.
Forward-Looking Statements
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.
Contacts:
Steve Gersten, Director of
Investor Relations
COMSovereign Holding Corp.
813-334-9745
investors@comsovereign.com
External Investor Relations:
Chris Tyson, Executive Vice
President
MZ Group - MZ North America
949-491-8235
COMS@mzgroup.us
www.mzgroup.us
and
Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
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SOURCE COMSovereign Holding Corp.