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.
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.