Telos Tops Q1 As Metrics Exceed Guidance; Registers 30% Topline Decline Due To Lower Revenue From Large Programs - Telos (NASDAQ:TLS)

Telos Corp (NASDAQ: TLS) reported a first-quarter FY23 revenue decline of 29.8% year-on-year to $35.2 million, beating the consensus of $31.4 million. Services revenue decreased 34.5% Y/Y to $31.5 million.
Gross margin expanded by 66 bps to 38.3%. Adjusted EPS loss of $(0.04) beat the consensus loss of $(0.13).
Telos used $(4.1) million in free cash flow and held $112.5 million in cash and equivalents.
"All metrics exceeded the high end of our guidance range," said John B. Wood, chairman and CEO, Telos. "As expected, our first quarter results reflect lower revenues on large programs."
Outlook: Telos sees Q2 revenue of $28 million - $32 million (consensus $30.49 million), representing a 50% - 43% decline Y/Y.
Telos reiterates FY23 revenue of $115 million - $140 million versus the consensus of $127.15 million.
Price Action: TLS shares traded higher by 16.57% at $2.11 on the last check Wednesday.