Company Reports Q4 Revenue of $227M, Below Expectations
Reports Q4 revenue $227M, consensus $241.35M. "Although our Q4 results were impacted by several customer and project delays, we generated a new record level of Product and Services bookings in the quarter including over $50M associated with new voice modernization programs for a growing number of customers across multiple regions. The delayed projects are not lost business and included deliverables already in backlog but with delayed deployment schedules. We also had several orders impacted by budget availability," stated Bruce McClelland, CEO. "As we look into 2026, we are accounting for these dynamic market conditions with a more conservative growth rate projection, particularly in the first half of the year where we expect continued lower U.S. Federal agency spending and recent industry M&A to cause timing uncertainty." CFO John Townsend remarked, "We expect to continue to improve our cost efficiency and working capital levels to drive better cash conversion. These efforts will receive a major boost from the tax benefit we recognized in the fourth quarter, which we expect will reduce our future cash tax payments by approximately $15M-$20M over the next several years, starting in 2026."
