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Telos (TLS)

Telos Corporation empowers and protects the world’s most security-conscious organizations with solutions for continuous security assurance of individuals, systems, and information. Telos’ offerings include cybersecurity solutions for IT risk management and information security; cloud security solutions to protect cloud-based assets and enable continuous compliance with industry and government security standards; and enterprise security solutions for identity and access management, secure mobility, organizational messaging, and network management and defense. The company serves military, intelligence and civilian agencies of the federal government, allied nations and commercial organizations around the world.

Company profile

Ticker
TLS
Exchange
Website
CEO
John B. Wood
Employees
Incorporated
Location
Fiscal year end
Former names
C3 INC
SEC CIK
Subsidiaries
Ubiquity.com, Inc. • Xacta Corporation • Teloworks, Inc. • Telos Identity Management Solutions, LLC • Teloworks Philippines, Inc. • Telos APAC Pte. Ltd. ...
IRS number
520880974

TLS stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$9.50
Low target
$9.00
High target
$10.00
BMO Capital
Maintains
Market Perform
$9.00
10 Aug 22
Needham
Maintains
Buy
$10.00
10 Aug 22

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

8 Aug 22
20 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 122.72M 122.72M 122.72M 122.72M 122.72M 122.72M
Cash burn (monthly) (no burn) 689.67K 4.08M 3.16M (no burn) (no burn)
Cash used (since last report) n/a 1.16M 6.87M 5.32M n/a n/a
Cash remaining n/a 121.56M 115.85M 117.4M n/a n/a
Runway (months of cash) n/a 176.3 28.4 37.1 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
19 Jul 22 Gary Mark Bendza Common Stock Payment of exercise Dispose F No No 7.62 32,663 248.89K 557,572
17 May 22 Bailey Bernard C Common Stock Grant Acquire A No No 0 11,453 0 16,665
17 May 22 Fredrick Schaufeld Common Stock Grant Acquire A No No 0 30,530 0 35,742
17 May 22 John W Maluda Common Stock Grant Acquire A No No 0 27,814 0 63,047
17 May 22 Derrick D. Dockery Common Stock Grant Acquire A No No 0 29,024 0 29,024
85.0% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 129 133 -3.0%
Opened positions 22 34 -35.3%
Closed positions 26 26
Increased positions 49 47 +4.3%
Reduced positions 35 32 +9.4%
13F shares Current Prev Q Change
Total value 444.92M 556.08M -20.0%
Total shares 47.09M 51.12M -7.9%
Total puts 40.9K 76K -46.2%
Total calls 17.6K 61.6K -71.4%
Total put/call ratio 2.3 1.2 +88.4%
Largest owners Shares Value Change
Corp/Panama Toxford 9.26M $142.86M 0.0%
Vanguard 4.48M $36.21M -0.9%
BLK Blackrock 3.99M $32.27M +36.9%
Hotchkis & Wiley Capital Management 2.16M $17.42M -23.0%
Masters Capital Management 2.05M $16.56M +13.9%
First Trust Advisors 1.93M $15.58M -30.5%
Victory Capital Management 1.77M $14.31M +2.3%
Needham Investment Management 1.76M $14.21M +8.2%
Pinnacle Associates 1.72M $13.91M +10.4%
FHI Federated Hermes 1.66M $13.43M NEW
Largest transactions Shares Bought/sold Change
FMR 1.2M -2.84M -70.3%
LGEN Legal & General 0 -2.27M EXIT
FHI Federated Hermes 1.66M +1.66M NEW
BLK Blackrock 3.99M +1.08M +36.9%
First Trust Advisors 1.93M -846.4K -30.5%
Whetstone Capital Advisors 0 -753.76K EXIT
Hotchkis & Wiley Capital Management 2.16M -644.5K -23.0%
BMO Bank of Montreal 437.94K +437.94K NEW
Citadel Advisors 602.41K +366.41K +155.3%
Two Sigma Investments 134.57K -337.07K -71.5%

Financial report summary

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Risks
  • We have identified certain material weaknesses in our internal control over financial reporting, and, if our remediation of these material weaknesses is not effective, or if we fail to maintain effective internal control over financial reporting in the future, our ability to produce accurate and timely consolidated financial statements could be impaired, which could adversely affect investor confidence in our company and, as a result, the value of our common stock.
  • Our actual operating results may differ significantly from our guidance.
  • Our pricing structures for our solutions and services may change from time to time.
  • We depend on computing infrastructure operated by AWS, Microsoft, and other third parties to support some of our solutions and customers, and any errors, disruption, performance problems, or failure in their or our operational infrastructure could adversely affect our business, financial condition, and results of operations.
  • We are dependent on a few key customer contracts for a significant portion of our future revenue, and a significant reduction in services or delay in implementation to one or more of these contracts would reduce or delay our future revenue and could materially affect our anticipated operating results.
  • We will face risks associated with the growth of our business in new commercial markets and with new customer verticals, and we may neither be able to continue our organic growth nor have the necessary resources to dedicate to the overall growth of our business.
  • In the future, we may seek to enter into other credit facilities to help fund our working capital needs. These credit facilities may expose us to additional risks associated with leverage and may inhibit our operating flexibility.
  • A novel strain of coronavirus, COVID-19, as well as variants of this strain, may adversely affect our future business operations, financial condition and our ability to execute on business or contract opportunities.
  • Our facilities or operations could be adversely affected by events outside of our control, such as natural disasters, wars or health epidemics or pandemics.
  • We enter into fixed-price and other contracts that could subject us to losses if we experience cost growth that cannot be billed to customers.
  • We depend on third parties in order to fully perform under our contracts and the failure of a third party to perform could have an adverse impact on our earnings.
  • Our business could be negatively affected by cyber or other security threats or other disruptions.
  • If we are unable to protect our intellectual property, our revenues may be impacted adversely by the unauthorized use of our products and services.
  • If we are unable to license third-party technology that is used in our products and services to perform key functions, the loss could have an adverse effect on our revenues.
  • Any potential future acquisitions, strategic investments, divestitures, mergers or joint ventures may subject us to significant risks, any of which could harm our business.
  • Any failure in our delivery of high-quality technical support services may adversely affect our relationships with our customers and our financial results.
  • We may lose key members of our management team, development and operations personnel, or subject matter experts, and may be unable to attract and retain employees we need to support our operations and growth.
  • If our customers do not renew their subscriptions or contracts for our solutions and services, our revenue could decline and our business may suffer.
  • If our security measures or those of our third-party data center hosting facilities, cloud computing platform providers or third-party service partners, are inadequate, or if the underlying infrastructure of the internet is breached, or if unauthorized access to a customer’s data or our data or our IT systems is obtained, or if authorized access to our customer's data or our data or our IT systems is blocked or disabled, our services may be perceived as not being secure, customers may curtail or stop using our services, and we may incur significant reputational harm, legal exposure and liabilities, or a negative financial impact.
  • Our ability to deliver our services is dependent on the development and maintenance of the infrastructure of the internet by third parties.
  • Sales to customers outside the United States expose us to risks inherent in international operations.
  • We are involved in a number of legal proceedings. We cannot predict the outcome of litigation and other contingencies with certainty.
  • We are subject to the seasonality of U.S. government spending.
  • Our U.S. government contracts are subject to competitive bidding, both upon initial issuance and re-competition. If we are unable to successfully compete in the bidding process or if we fail to win re-competitions, it could adversely affect our operating performance and lead to an unexpected loss of revenue.
  • The business environment in which we operate is highly competitive and may impair our ability to achieve revenue growth.
  • Weakened global economic conditions may adversely affect our industry, business, operating results and financial condition.
  • Changes in accounting principles or their application to us could result in unfavorable accounting charges or effects, which could adversely affect our results of operations and growth prospects.
  • If our judgments or estimates relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below expectations of securities analysts and investors, resulting in a decline in our stock price.
  • Our business is subject to complex and evolving U.S. and non-U.S. laws and regulations regarding privacy, data protection and security, technology protection, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, increased cost of operations, or otherwise harm our business.
  • We are subject to governmental export and import controls that could impair our ability to compete in international markets and subject us to liability if we are not in full compliance with applicable laws.
Management Discussion
  • We generate revenue from the delivery of product and services to our customers. The discussion of material changes in our net revenue should be read in conjunction with the subsequent discussion of changes in our consolidated cost of sales and our business segment results of operations. Cost of sales, for both services and products, consists of material, labor, subcontracting costs and an allocation of indirect costs.
  • Revenue increased by 4.0% to $55.8 million for the second quarter of 2022, from $53.6 million for the same period in 2021. Services revenue increased by $1.3 million, or 2.6%, during the second quarter of 2022 compared to the same period in 2021. The increase in services revenue was primarily due to sales offerings within Secure Networks. Product revenue increased $0.9 million, or 19.0%, during the second quarter of 2022 compared to the same period in 2021. The increase in product revenue was primarily due to various product delivery within Security Solutions. Due to the various solution offerings within the business groups, sales may vary from period to period according to the solution mix and timing of deliverables for a particular period.
  • Cost of sales increased by 12.1% to $34.9 million for the second quarter of 2022, from $31.1 million for the same period in 2021, as a result of increased revenue. The change in cost of sales is directly driven by the change in mix and nature of the programs. Cost of sales for Security Solutions decreased to $14.4 million for the second quarter of 2022 from $15.0 million for the same period in 2021. While the cost of sales decreased between periods, the cost of sales as a percentage of revenue remained at 46.7%. Cost of sales for Secure Networks increased to $20.5 million for the second quarter of 2022 from $16.1 million for the same period in 2021. Likewise, cost of sales as a percentage of revenue increased to 82.0% from 75.0%.

Content analysis

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