Telos Corp (NASDAQ:TLS) reported a second-quarter FY23 revenue decline of 41% year-on-year to $32.91 million, beating the consensus of $29.97 million.
Services revenue decreased 42.4% Y/Y, and Products was down 28.2% Y/Y.
Gross margin was flat at ~37.5%, with gross profit down 40.9% Y/Y to $12.36 million.
Adjusted EPS loss was $(0.03), down from EPS of $0.04 in 2Q22, beating the consensus loss of $(0.13).
Adjusted EBITDA loss was $(29) thousand, compared to Adjusted EBITDA of $4.54 million a year ago.
Telos net cash used in operating activities for the six months ended June 30, 2023, totaled $(4.21) million, compared to cash provided $8.13 million a year ago.
“We executed effectively in the second quarter and delivered results above the high end of our guidance range,” stated John B. Wood, chairman and CEO of Telos.
“We remain focused on rebuilding and growing our backlog and core revenue base by strengthening our business development operation and pipeline, and aligning investments in our solutions portfolio to the demands of the end markets and customers we know best,” he added.
3Q23 Outlook: Telos sees revenue of $30 million – $34 million and Adjusted EBITDA of ($8) million – ($6) million.
FY23 Outlook: Telos revised its outlook for revenue to $122 million – $137 Million from $115 million – $140 million (consensus $127.54 million); and Adjusted EBITDA to ($19) million – ($14) million.
Price Action: TLS shares traded higher by 9.17% at $2.51 on the last check Wednesday.
