TLS Stock Price Increased Over 28% Intraday: Why It Happened

By Amit Chowdhry ● Mar 26, 2021
  • The stock price of Telos Corp (NASDAQ: TLS) increased by over 28% during intraday trading today. This is why it happened.

The stock price of Telos Corp (NASDAQ: TLS) – a leading provider of cyber, cloud, and enterprise security solutions for the world’s most security-conscious organizations – has increased by over 28% during intraday trading. This is why it happened.

The stock price of Telos Corp (NASDAQ: TLS) has increased by over 28% during intraday trading. Investors appear to be responding to the company announcing its Q4 and FY 2020 results.

Q4 2020 Financial Highlights

– Revenue: Total revenue was $44.9 million, compared to $46.5 million in the fourth quarter of 2019. And the expected decline in revenue was due to the ramping down of the U.S. Census contract during the fourth quarter of 2020.

– Gross Profit: Gross profit was $16 million, compared to $17.0 million in the fourth quarter of 2019.

– Net Income (Loss): Net income (loss) was $3.9 million, compared to $(3.5) million in the fourth quarter of 2019.

– Enterprise EBITDA: Enterprise EBITDA was $5.4 million, compared to $2.5 million in the fourth quarter of 2019.

– Adjusted EBITDA: Adjusted EBITDA was $(2.6) million, compared to $2.5 million in the fourth quarter of 2019.

– Net earnings per share attributable to Telos Corporation, diluted: $0.08.

– Weighted-average shares of common stock outstanding: 51.3 million (which reflects reverse stock split and the IPO).

FY 2020 Financial Highlights

– Revenue: Total revenue increased 13% to $179.9 million, compared to $159.2 million in 2019.

– Gross Profit: Gross profit increased 19% to $62.4 million, compared to $52.3 million in 2019.

– Net Income (Loss): Net income was $1.7 million, compared to net loss of $(6.4) million in 2019.

– Enterprise EBITDA: Enterprise EBITDA was $19.4 million, compared to $10.0 million in 2019.

– Adjusted EBITDA: Adjusted EBITDA was $11.4 million, compared to $10.0 million in 2019.

– Cash and Cash Equivalents: Cash and cash equivalents were $106.0 million as of December 31, 2020, compared to $6.8 million as of December 31, 2019.

KEY QUOTES:

“2020 was a momentous year for the Company – we delivered strong revenue growth, continued to expand our customer relationships, and closed our public offering in November. We are a leading cybersecurity company with a 25-year history of providing innovative security solutions to the most security-conscious customers, and we have accelerated our efforts since the pandemic started. Our results are being driven by strong demand for our advanced security solutions, recent long-term contract wins and our growing sales channel. We believe the future is bright for the cybersecurity and enterprise security market and we are well-positioned to continue to capitalize on this robust opportunity.”

“2021 is off to a strong start, as we continue to execute on our growth strategy and significantly expand our sales and marketing capabilities with an emphasis on establishing a world-class channel organization. We have already been able to attract a team of seasoned channel professionals to lead the effort. We recently announced our partnership with Zscaler, a leading cloud security provider, to integrate our enterprise risk management solution, Xacta, into their offering. We also announced two important new partnerships involving the integration of our Telos Ghost virtual obfuscation solution, one into Johnson Controls’ OpenBlue Cloudvue Gateway used for IP cameras to be sold to customers around the world, and the second into Omnilert Gun Detect, the industry’s first AI-powered visual gun detection solution to be sold for use on campuses. In addition, we are partnering with a number of leading cloud and cybersecurity companies to integrate our combined offerings and solutions.”

“We have also been successful in securing over $75 million of orders from new and existing customers so far in 2021. This includes a recently awarded one-year contract with a customer that is using both our Security Solutions and Secure Networks capabilities with a value of up to $34 million. If this overall solution is proven successful, this could be repeated in several other locations around the United States. We also launched a Supply Chain Risk Management (SCRM) offering to help organizations thwart future SolarWinds-like attacks.”

— John B. Wood, CEO and chairman, Telos

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.