NEW YORK, NY / ACCESSWIRE / April 16, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Comtech Telecommunications Corp. ("Comtech") (NASDAQ:CMTL) concerning possible violations of federal securities laws.
On December 7, 2023, Comtech released its earnings report for the quarter ended October 31, 2023. The report contained an "going concern" qualification due to worries about Comtech's continued compliance with its financial covenants. The Company further revealed it had drawn down most of its credit facility and was engaged in protracted negotiations to renew that facility, set to expire in October 2024.
Analysts raised alarm about Comtech's "unbilled receivables," an accounting practice used to recognize revenue prior to a company actually receiving those funds. One analyst described the practices as "Aggressive Accounting".
On March 18, 2024, the Company released its quarterly earnings report, days after dismissing its CEO for alleged ethics violations. The Company missed revenue projections and indicated ongoing uncertainty about its debt negotiations. Analysts also noted Comtech's continued use of "unbilled receivables" and its impact on the Company's financial statements.
Following the release of the earnings report, CMTL shares fell $4.63, or 37%, overnight.
To obtain additional information, go to:
https://zlk.com/pslra-1/comtech-lawsuit-submission-form?prid=75818&wire=1
or contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212)363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
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New York, NY 10004
[email protected]
Tel: (212)363-7500
Fax: (212)363-7171
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SOURCE: Levi & Korsinsky, LLP