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Company Overview We are a leading global provider of communications technology to service providers and enterprises. We provide a broad range of software and high-performance hardware products, network solutions, and services that enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity for residential consumers and for small, medium, and large…
The business is unprofitable at the operating level (-0.39% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue growth slowed to 1.3%, essentially flat. Margins also contracted 2.4pp. This is a business that needs a catalyst.
Net debt of $309M represents 11.8x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$826M
▲ +1.3% YoY
Net Income (TTM)
$31M
▲ +173.1% YoY
Op. Margin
-1.87%
▼ -2.4pp YoY
ROIC
-1.51%
▼ -1.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$17M
▼ -6.4% YoY
Op. Cash Flow (TTM)
$33M
▲ +2.3% YoY
Net Debt
$333M
Cash & Equiv.
$68M
5Y CAGR: +0.0%
5Y CAGR: -19.0%
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