Telos Registers 10% Revenue Decline In Q1; Reaffirms FY22 Guidance - Telos (NASDAQ:TLS)

Telos Corp TLS reported a first-quarter FY22 revenue decline of 10% year-on-year to $50.2 million. Services revenue declined 7.6% Y/Y to $48.1 million.
The gross margin expanded by 1,160 bps to 37.6%. Adjusted EPS loss was $(0.01).
Telos generated $0.25 million in operating cash flow in the quarter and held $120.2 million in cash and equivalents.
Telos reported several key new wins and renewals, including the U.S. Air Force, the U.S. State Department, EY, Amazon.com Inc AMZN Amazon Web Services, the National Geospatial-Intelligence Agency, and the National Security Agency. Additionally, the company began a new relationship with a foreign government customer to implement and utilize Xacta.
Outlook: Telos sees Q2 revenue of $50 million - $54 million, representing (7%) - 1% change Y/Y.
Telos reiterated FY22 revenue of $226 million - $257 million, representing (7%) - 6% change Y/Y.
Price Action: TLS shares traded lower by 3.14% at $6.78 on the last check Tuesday.