Actelis Networks Q3 revenue rises on higher federal orders; net loss narrows

Overview

• U.S. networking solutions provider's Q3 revenue rose 68% yr/yr, third straight quarter of growth

• Gross margin improved to 40% from 28%, while net loss narrowed by 37%

• Growth driven by federal and broadband orders, including U.S. Marine Corps and Alaska carriers

Outlook

• Company did not provide specific financial guidance for future periods in its press release

Result Drivers

• FEDERAL AND TRANSPORTATION ORDERS - Revenue growth driven by increased deliveries to U.S. federal and intelligent transportation customers

• COST REDUCTIONS - Lower operating expenses, including sales and marketing and general administrative costs, contributed to narrower losses

• GROSS MARGIN IMPROVEMENT - Higher gross margin attributed to increased sales and software revenue mix

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Actelis Networks Inc is $3.00, about 7,784.4% above its November 9 closing price of $0.04

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)