Telos Shares Drop On Q3 Miss, FY21 Outlook Cut - Telos (NASDAQ:TLS)

Telos Corp TLS reported third-quarter FY21 revenue growth of 48% year-on-year to $70.1 million, missing the consensus of $76 million.
Services revenue rose 44.2% Y/Y to $63.7 million.
The gross margin expanded 229 bps to 37%, aided by every business line.
EPS of $0.10 missed the consensus of $0.11.
Telos generated $12.5 million in operating cash flow and held $134.1 million in cash and equivalents.
"We saw strong third-quarter results, as we delivered 48% reported sales growth, 80% adjusted sales growth, and increased gross profit 57% to a record $26.1 million," Chair and CEO John B. Wood said.
Outlook: Telos slashed FY21 revenue outlook from $283 million - $295 million to $240 million - $245 million, below the consensus of $286.3 million.
It sees Adjusted EBITDA of $18 million - $19 million (prior view $33 million - $36 million).
Price Action: TLS shares traded lower by 20.2% at $19.45 in premarket on the last check Monday.