Telos ( NASDAQ: TLS ) shares have tumbled around -67% after the cybersecurity company lowered its 2022 guidance despite earnings and revenue beats in Q3.
Q3 non-GAAP EPS was $0.10 on revenue of $63.59M (-7.8% Y/Y), with Telos posting $8.4M of free cash flow. Revenue included $32.4M from its Security Solutions business and $31.2M from Secure Networks.
Net loss was $7.3M and adjusted EBITDA was $8.6M, exceeding the company's expectations after a better-than-expected gross profit and cost management actions to lower operating expenses.
However, Telos lowered its revenue guidance for 2022 to $213M-$217M from the earlier range of $226M-$242M. The new guidance indicates a 10-12% decline in turnover for the year; Telos earlier expected to be in line with 2021 revenues at the high end of its outlook.
Telos has also cut its adjusted EBITDA guidance to $14M-$16M from $18M-$24M.
Chairman and CEO John Woods explained: "We are disappointed to lower our 2022 outlook primarily as a result of a shortfall in short lead-time business wins needed in Secure Networks to backfill revenues from large programs reaching completion over the course of 2022."
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Telos tanks 67% on full year guidance cut