DALLAS, Nov. 9, 2022 /PRNewswire/ — COMSovereign Holding Corp. (NASDAQ: COMS) (“COMSovereign” or the “Company”), a U.S.-based developer of 4G LTE Advanced and 5G Communication Systems and Solutions right this moment issued the next CEO Update Letter:
To Our Fellow COMSovereign Stakeholders:
Having served as COMSovereign’s Interim CEO for simply over 8 weeks, I wished to share with you my preliminary ideas, observations, and a glimpse of our collective imaginative and prescient for the place our Company must go and what have to be accomplished to get there.
Three areas of crucial significance as I write this letter are: 1) to enhance our capability to drive income; 2) to finish and file our quarterly monetary experiences with the Securities and Exchange Commission (“SEC”) and deal with our public itemizing standing on Nasdaq; and three) to safe interim capital which may help our operations.
From a top-line potential, our wi-fi connectivity and tethered aerial platform companies signify our main sources of income. These merchandise are constructed round distinctive, proprietary differentiating applied sciences, and ship unmatched capabilities to their respective purchasers. In the wi-fi business, we are actively fulfilling customer orders through existing inventory and at Drone Aviation, we continue to make progress against its $8.4 million subcontract award. In every case, we proceed to hunt methods to maximise the worth of those merchandise.
Regarding the standing of our SEC filings, we’re working diligently to deal with our submitting delays brought on by reductions in workers and turnover in addition to the inventory price-related deficiencies which may lead to our shares being delisted from Nasdaq. We have not too long ago enlisted further help to help us in finishing our quarterly monetary experiences and have requested a listening to earlier than the Nasdaq Hearings Panel and obtained a keep of additional motion pending the issuance of the Panel’s resolution.
In phrases of capital funding, we proceed to have discussions with a number of events concerning each interim and longer-term alternatives. These potential fundings would allow the Company to extend sources in key areas akin to elevated manufacturing in addition to back-office operations and gross sales. Furthermore, we’re persevering with discussions concerning the sale of sure merchandise or non-performing belongings which may present elevated money and additional keep our give attention to the wi-fi connectivity markets.
Working carefully with the Board of Directors, I’ve met with, and listened to, our workers, clients, companions, and traders. What was made abundantly clear is a shared recognition of the numerous worth of our applied sciences and the position they may play in supporting an all the time linked wi-fi world. Whether we’re serving the massive public networks or the various vary of personal networks, the forthcoming 5G revolution calls for trusted options delivering most efficiency, resiliency, and safety. Fortunately for COMSovereign, these are simply among the defining hallmarks of our DragonWave, Fastback, and VNC radio merchandise. This linked world additionally contains an rising position for drones and different aerial platforms akin to our tethered aerostats, which may ship safe and chronic entry to altitude for each Communications and Intelligence, Surveillance and Reconnaissance purposes. It was additionally clear that whereas COMSovereign’s imaginative and prescient is compelling, higher execution was wanted in managing and integrating its portfolio of applied sciences and effectively aligning its underlying operations. To deal with these challenges, our workforce is targeted on 4 key initiatives: Streamlining the Business, Ensuring Support for Our Customers and Partners, Refining Our Technology Vision and Roadmap, and Improving Our Corporate Operations:
Streamlining the Business
Operating the business on a robust and environment friendly basis is crucial to our success. As a part of this, COMSovereign has been present process a strategic evaluate of its total operation – its merchandise, subsidiaries, inner processes, manufacturing, and product improvement efforts. Critical components right here embrace:
- Focusing our choices on connectivity for operators of wi-fi networks of all sizes, private and non-private. Key to that is our Fastback, DragonWave, VNC {hardware} and Saguna Mobile Edge Compute (“MEC”) software program.
- We have lowered our overhead prices by as a lot as 75% although headcount reductions and shutting a number of workplace places. The evaluate is ongoing, and we are going to proceed to give attention to the best approach to innovate, construct, promote, service, and help our options, however accomplish that in a fiscally prudent method.
- As I indicated earlier, we proceed to discover the sale or licensing of our expertise in addition to our vital mental property (“IP”).
Ensuring Support for Our Customers and Partners
One of elementary worth drivers of COMSovereign was its giant put in base of shoppers which numbered over 700+ together with tier one carriers, and smaller regional community operators. These clients depend on the efficiency, reliability, and ease-of-use of our DragonWave and Fastback radios to deal with the distinctive community challenges they face, even for his or her most demanding conditions. What we’ve got heard from each present and potential customers in new markets, is a need to have constant product availability and help. As such, rectifying previous points with provide chains and manufacturing has been a serious focus:
- Although provide chain challenges stay, we’re starting to see enhancements in backlogs with the circulation of key componentry now accessible and a discount in lead occasions. These enhancements will permit us to raised reply to demand we’re seeing whereas our design and engineering groups proceed deal with the remaining challenges with parts nonetheless utilized in our merchandise.
- We have reengaged with our contract manufacturing (“CM”) companions. These CMs will allow us to extra affordably deal with demand which continues to outstrip our provide capability. Central to this effort would be the availability of funding to spend money on constant and elevated manufacturing.
- We are exploring new partnerships in North America outdoors of our conventional go-to-market channels with a give attention to enterprise and authorities segments whereas rebuilding relationships with our present worldwide companions all through Asia and Europe. Having reviewed our resolution portfolio, we imagine there are further partnerships that may allow us to supply our clients with a extra full, absolutely built-in providing.
- We intend to broaden our engineering by each inner hiring and rising {our relationships} with present engineering providers companions.
Technology Vision and Roadmap
COMSovereign’s imaginative and prescient was the creation of a US-based supplier of 5G expertise that would allow service suppliers, governments, and enterprises to attach wherever and at any time when it was wanted. This imaginative and prescient was backed by a long time of field-tested expertise, distinctive expertise capabilities and strong IP. We intend to construct upon these foundational components with a solidified and achievable roadmap for the long run:
- Uniquely differentiated merchandise designed with resiliency and safety at their core, based on offering data assurance, and constructed on a trusted and clear provide chain. Our merchandise will characteristic self-optimizing networking expertise and built-in edge computing capabilities to cut back deployment occasions and prices and ship larger efficiency.
- Building upon over 20 years of wi-fi innovation, we are going to speed up improvement of a subsequent technology, standards-compliant unified platform tailor-made to the wants of the wi-fi transport and entry market right this moment, however versatile sufficient to evolve with the business of tomorrow. This unified resolution will ship the advantages of enhanced functionality and suppleness to carriers and community operators by using our present IP.
Improving Our Corporate Operations:
Underlying all our transition initiatives is the dedication to making sure we’ve got the suitable business group, operations, and personnel required to realize our objectives. The Board and I’ve already recognized and prioritized a number of areas the place funding and enhancements are essential:
- We intend to make enhancements in gross sales, accounting, engineering, and help whereas making certain that headcount is correctly aligned to help operations and income.
- We are taking steps to reinforce our accounting and finance operations which we imagine will enhance our monetary reporting processes as we search to finish our quarterly filings in a well timed method.
In conclusion, the Board, our workforce, and I imagine that the problems we face are certainly fixable. We share a dedication to realizing the worth of our expertise, IP, and expertise and have taken steps to deal with the challenges that are impeding the Company’s capability to ship on the super alternatives forward of us. While there may be quite a lot of work to do, we’ve got a transparent and centered plan, one which we imagine defines an achievable path ahead for the Company and might profit all stakeholders. I sit up for speaking our progress with you within the weeks and months forward.
Sincerely,
David Knight
Interim Chief Executive Officer
About COMSovereign Holding Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications expertise firms that improve connectivity throughout your complete knowledge transmission spectrum. Through strategic acquisitions and natural analysis and improvement efforts, COMSovereign has grow to be a U.S.-based communications supplier capable of present 4G LTE Advanced and 5G telecom options to community operators and enterprises. For extra details about COMSovereign, please go to www.COMSovereign.com.
Forward-Looking Statements
Certain statements on this press launch that aren’t historic info are forward-looking statements that replicate administration’s present expectations, assumptions, and estimates of future efficiency and financial circumstances, and contain dangers and uncertainties that would trigger precise outcomes to vary materially from these anticipated by the statements made herein. Forward-looking statements are usually identifiable by way of forward-looking terminology akin to “believe,” “expects,” “may,” “looks to,” “will,” “should,” “plan,” “intend,” “on condition,” “target,” “see,” “potential,” “estimates,” “preliminary,” or “anticipates” or the destructive thereof or comparable terminology, or by dialogue of technique or objectives or different future occasions, circumstances, or results. Moreover, forward-looking statements on this launch embrace, however usually are not restricted to the power to develop and ship superior voice and knowledge communications techniques, deal with provide chain challenges together with securing ample stock of essential parts, demand for the Company’s merchandise, the power of the Company to regain compliance with Nasdaq itemizing necessities, its capability to file its monetary experiences in a well timed method, and safe further funding. Further data referring to components that will affect the Company’s outcomes and forward-looking statements are disclosed within the Company’s filings with the SEC. The forward-looking statements contained on this press launch are made as of the date of this press launch, and the Company disclaims any intention or obligation, apart from imposed by legislation, to replace or revise any forward-looking statements, whether or not on account of new data, future occasions, or in any other case.
Contacts:
Steve Gersten, Director of Investor Relations
COMSovereign Holding Corp.
813-334-9745
[email protected]
and
Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
[email protected]
SOURCE COMSovereign Holding Corp.
