Comtech Telecommunications (CMTL) 10-Q 13 Jan 25 2025 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Oct. 31, 2024	Jan. 09, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2024
Document Transition Report	false
Entity File Number	0-7928
Entity Registrant Name	COMTECH TELECOMMUNICATIONS CORP /DE/
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-2139466
Entity Address, Address Line One	305 N 54th Street
Entity Address, City or Town	Chandler
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	333-2200
City Area Code	(480)
Local Phone Number	333-2200
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	CMTL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,170,883
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Entity Central Index Key	0000023197

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Oct. 31, 2024	Jul. 31, 2024
Current assets:
Cash and cash equivalents	$ 29,644,000	$ 32,433,000
Accounts receivable, net	180,864,000	195,595,000
Inventories, net	81,804,000	93,136,000
Prepaid expenses and other current assets	14,244,000	15,387,000
Total current assets	306,556,000	336,551,000
Property, plant and equipment, net	46,433,000	47,328,000
Operating lease right-of-use assets, net	29,873,000	31,590,000
Goodwill	204,625,000	284,180,000
Intangibles with finite lives, net	188,235,000	194,828,000
Deferred financing costs, net	1,936,000	3,251,000
Other assets, net	15,545,000	14,706,000
Total assets	793,203,000	912,434,000
Current liabilities:
Accounts payable	43,514,000	42,477,000
Accrued expenses and other current liabilities	56,384,000	62,245,000
Current portion of credit facility, net	182,380,000	4,050,000
Subordinated debt, net	23,735,000	0
Operating lease liabilities, current	7,645,000	7,869,000
Contract liabilities	69,104,000	65,834,000
Interest payable	551,000	1,072,000
Total current liabilities	383,313,000	183,547,000
Non-current portion of credit facility, net	0	173,527,000
Operating lease liabilities, non-current	28,726,000	30,258,000
Income taxes payable, non-current	2,495,000	2,231,000
Deferred tax liability, net	6,106,000	6,193,000
Long-term contract liabilities	21,983,000	21,035,000
Other liabilities	51,516,000	9,314,000
Total liabilities	494,139,000	426,105,000
Commitments and contingencies (See Note 20)
Convertible preferred stock, par value $0.10 per share; authorized and issued 175,264 shares at October 31, 2024 (redemption value of $187,814,000 which includes accrued dividends of $655,000) and authorized and issued 171,827 shares at July 31, 2024 (redemption value of $180,076,000, which includes accrued dividends of $1,341,000)	148,700,000	180,076,000
Equity, Attributable to Parent [Abstract]
Preferred stock, par value $0.10 per share; authorized and unissued 1,824,736 and 1,828,173 shares at October 31, 2024 and July 31, 2024, respectively	0	0
Common stock, par value $0.10 per share; authorized 100,000,000 shares; issued 43,927,127 and 43,766,109 shares at October 31, 2024 and July 31, 2024, respectively	4,393,000	4,377,000
Additional paid-in capital	587,820,000	640,145,000
Retained earnings	0	103,580,000
Stockholders' equity before treasury stock	592,213,000	748,102,000
Treasury stock, at cost (15,033,317 shares at October 31, 2024 and July 31, 2024)	(441,849,000)	(441,849,000)
Total stockholders’ equity	150,364,000	306,253,000
Total liabilities, convertible preferred stock and stockholders’ equity	$ 793,203,000	$ 912,434,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	3 Months Ended
	Oct. 31, 2024	Jul. 31, 2024
Equity, Attributable to Parent [Abstract]
Convertible preferred stock, par value per share (in dollars per share)	$ 0.10	$ 0.10
Convertible preferred stock, shares authorized (in shares)	175,264	171,827
Convertible preferred stock converted to other securities	$ 187,814,000
Convertible preferred stock, par value (in shares)	175,264	171,827
Convertible preferred stock, accrued dividends	$ 655,000	$ 1,341,000
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	1,824,736	1,828,173
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	43,927,127	43,766,109
Treasury stock, shares (in shares)	15,033,317	15,033,317

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Income Statement [Abstract]
Net sales	$ 115,800,000	$ 151,911,000
Cost of sales	101,284,000	104,029,000
Gross profit	14,516,000	47,882,000
Expenses:
Selling, general and administrative	51,644,000	32,695,000
Research and development	3,713,000	7,812,000
Amortization of intangibles	6,593,000	5,289,000
Impairment of long-lived assets, including goodwill	79,555,000	0
Proxy solicitation costs	1,583,000	0
CEO transition costs	598,000	0
Total operating expenses	143,686,000	45,796,000
Operating (loss) income	(129,170,000)	2,086,000
Other expenses (income):
Interest expense	9,532,000	4,932,000
Interest (income) and other	635,000	(65,000)
Write-off of deferred financing costs	1,412,000	0
Change in fair value of warrants and derivatives	5,524,000	0
Loss before provision for (benefit from) income taxes	(146,273,000)	(2,781,000)
Provision for (benefit from) income taxes	2,134,000	(1,344,000)
Net loss	(148,407,000)	(1,437,000)
Establishment of initial convertible preferred stock purchase option liability	51,179,000	0
Dividend on convertible preferred stock	(58,634,000)	(1,823,000)
Net loss attributable to common stockholders	$ (155,862,000)	$ (3,260,000)
Net loss per common share (See Note 6):
Basic (in dollars per share)	$ (5.29)	$ (0.11)
Diluted (in dollars per share)	$ (5.29)	$ (0.11)
Weighted average number of common shares outstanding - basic (in shares)	29,446,000	28,745,000
Weighted average number of common and common equivalent shares outstanding - diluted (in shares)	29,446,000	28,745,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock
Beginning Balance (in shares) at Jul. 31, 2023	100,000
Beginning Balance at Jul. 31, 2023	$ 112,211,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends)	$ (1,823,000)
Ending Balance (in shares) at Oct. 31, 2023	100,000
Ending Balance at Oct. 31, 2023	$ 114,034,000
Beginning balance (in shares) at Jul. 31, 2023		43,096,271
Beginning balance (in shares) at Jul. 31, 2023					15,033,317
Beginning balance at Jul. 31, 2023	438,299,000	$ 4,310,000	$ 636,925,000	$ 238,913,000	$ (441,849,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-classified stock award compensation	2,645,000		2,645,000
Issuance of employee stock purchase plan shares (in shares)		12,799
Issuance of employee stock purchase plan shares	94,000	$ 1,000	93,000
Issuance of restricted stock (in shares)		13,904
Issuance of restricted stock, net of forfeiture	0	$ 2,000	(2,000)
Net settlement of stock-based awards (in shares)		145,808
Net settlement of stock-based awards	(995,000)	$ 14,000	(1,009,000)
Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends)	(1,823,000)			(1,823,000)
Reversal of dividend equivalents	23,000			23,000
Net loss	(1,437,000)			(1,437,000)
Ending balance (in shares) at Oct. 31, 2023		43,268,782
Ending balance (in shares) at Oct. 31, 2023					15,033,317
Ending balance at Oct. 31, 2023	$ 436,806,000	$ 4,327,000	638,652,000	235,676,000	$ (441,849,000)
Beginning Balance (in shares) at Jul. 31, 2024	171,827
Beginning Balance at Jul. 31, 2024	$ 180,076,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Extinguishment of convertible preferred stock (in shares)	(171,827)
Extinguishment of convertible preferred stock	$ (183,489,000)
Issuance of convertible preferred stock (at fair value), excluding embedded derivatives reported in Other liabilities	175,264
Issuance of convertible preferred stock (at fair value), excluding embedded derivatives reported in Other liabilities	$ 93,479,000
Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends)	$ 58,634,000
Ending Balance (in shares) at Oct. 31, 2024	175,264
Ending Balance at Oct. 31, 2024	$ 148,700,000
Beginning balance (in shares) at Jul. 31, 2024	43,766,109	43,766,109
Beginning balance (in shares) at Jul. 31, 2024	15,033,317				15,033,317
Beginning balance at Jul. 31, 2024	$ 306,253,000	$ 4,377,000	640,145,000	103,580,000	$ (441,849,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-classified stock award compensation	155,000		155,000
Issuance of employee stock purchase plan shares (in shares)		14,475
Issuance of employee stock purchase plan shares	38,000	$ 1,000	37,000
Issuance of restricted stock (in shares)		26,234
Issuance of restricted stock, net of forfeiture	0	$ 3,000	(3,000)
Net settlement of stock-based awards (in shares)		120,309
Net settlement of stock-based awards	(247,000)	$ 12,000	(259,000)
Extinguishment of convertible preferred stock	51,179,000
Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends)	(58,634,000)		(52,255,000)	(6,379,000)
Reversal of dividend equivalents	27,000			27,000
Net loss	$ (148,407,000)			(148,407,000)
Ending balance (in shares) at Oct. 31, 2024	43,927,127	43,927,127
Ending balance (in shares) at Oct. 31, 2024	15,033,317				15,033,317
Ending balance at Oct. 31, 2024	$ 150,364,000	$ 4,393,000	$ 587,820,000	$ 0	$ (441,849,000)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		12 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Cash flows from operating activities:
Net loss	$ (148,407,000)	$ (1,437,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property, plant and equipment	2,895,000	3,022,000
Amortization of intangible assets with finite lives	6,593,000	5,289,000
Amortization of stock-based compensation	155,000	2,645,000
Amortization of cost to fulfill assets	261,000	240,000
Paid-in-kind interest under term loan	2,082,000	0
Accretion of interest on subordinated credit facility	248,000	0
Amortization of deferred financing costs	973,000	594,000
Write-off of deferred financing costs	1,412,000	0
Change in fair value of warrants and derivatives	5,524,000	0
Changes in other liabilities	0	(1,033,000)
Loss on disposal of property, plant and equipment	0	6,000
Provision for allowance for doubtful accounts and contract assets	17,443,000	143,000
Provision for excess and obsolete inventory	12,546,000	78,000
Deferred income tax (benefit) expense	(166,000)	1,114,000
Impairment of long-lived assets, including goodwill	79,555,000	0
Changes in assets and liabilities, net of effects of divestiture:
Accounts receivable	(2,712,000)	(26,269,000)
Inventories	(1,214,000)	2,656,000
Prepaid expenses and other current assets	(995,000)	997,000
Other assets	(1,096,000)	2,802,000
Accounts payable	1,710,000	5,100,000
Accrued expenses and other current liabilities	(4,887,000)	(6,538,000)
Contract liabilities	4,218,000	(685,000)
Other liabilities, non-current	105,000	145,000
Interest payable	(521,000)	58,000
Income taxes payable	2,472,000	(3,472,000)
Net cash used in operating activities	(21,806,000)	(14,545,000)	$ (54,495,000)	$ (4,433,000)
Cash flows from investing activities:
Purchases of property, plant and equipment	(2,415,000)	(3,216,000)
Net cash used in investing activities	(2,415,000)	(3,216,000)
Cash flows from financing activities:
Proceeds from subordinated credit facility	25,000,000	0
Net borrowings under revolving loan	0	19,600,000
Repayment of term loan	0	(625,000)
Proceeds from issuance of employee stock purchase plan shares	38,000	94,000
Payment of deferred financing costs	(2,757,000)	(308,000)
Remittance of employees’ statutory tax withholding for stock awards	(666,000)	(1,682,000)
Payment of shelf registration costs	94,000	0
Cash dividends paid on common stock	(39,000)	(111,000)
Net cash provided by financing activities	21,432,000	16,968,000
Net decrease in cash and cash equivalents, including cash classified within assets of disposal group held for sale	(2,789,000)	(793,000)
Less: net increase in cash classified within assets of disposal group held for sale	0	(52,000)
Net decrease in cash and cash equivalents	(2,789,000)	(845,000)
Cash and cash equivalents at beginning of period	32,433,000	18,961,000	18,961,000
Cash and cash equivalents at end of period	29,644,000	18,116,000	$ 32,433,000	$ 18,961,000
Cash paid during the period for:
Interest	6,728,000	4,278,000
Income taxes, net	37,000	1,019,000
Non-cash investing and financing activities:
Adjustment to reflect redemption value of convertible preferred stock	58,634,000	1,823,000
Term loan amendment fee paid-in-kind	3,250,000	0
Accrued additions to property, plant and equipment	530,000	1,154,000
Accrued deferred financing costs	418,000	444,000
Accrued shelf registration costs	76,000	0
Unpaid convertible preferred stock issuance costs	26,000	0
Issuance of restricted stock	3,000	0
Accrued remittance of employees' statutory tax withholdings	0	526,000
Cash dividends declared on common stock but unpaid, including (reversal) accrual of dividend equivalents	(27,000)	(23,000)
Convertible Preferred Stock
Cash flows from financing activities:
Payment of issuance costs	$ (50,000)	$ 0

General

General	3 Months Ended
	Oct. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	General The accompanying Condensed Consolidated Financial Statements of Comtech Telecommunications Corp. and its subsidiaries ("Comtech," "we," "us," or "our") as of and for the three months ended October 31, 2024 and 2023 are unaudited. In the opinion of management, the information furnished reflects all material adjustments (which include normal recurring adjustments) necessary for a fair presentation of the results for the unaudited interim periods. Our results of operations for such periods are not necessarily indicative of the results of operations to be expected for the full fiscal year. The preparation of our Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the Condensed Consolidated Financial Statements , and the reported amounts of net sales and expenses during the reported period. Actual results may differ from those estimates. Our Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements, filed with the Securities and Exchange Commission ("SEC"), for the fiscal year ended July 31, 2024 and the notes thereto contained in our Annual Report on Form 10-K, and all of our other filings with the SEC. Liquidity and Going Concern Pursuant to the requirements of ASC Topic 205-40, " Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern ," we are required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern. This evaluation does not take into consideration the potential mitigating effect of our plans that have not been fully implemented or are not within our control as of the date the unaudited Condensed Consolidated Financial Statements are issued. When substantial doubt exists, we are required to evaluate whether the mitigating effect of our plans sufficiently alleviates substantial doubt about our ability to continue as a going concern. The mitigating effect of our plans, however, is only considered if both (i) it is probable that the plans will be effectively implemented within one year after the date that the unaudited Condensed Consolidated Financial Statements are issued, and (ii) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about our ability to continue as a going concern within one year after the date that the unaudited Condensed Consolidated Financial Statements are issued. As of the date these financial statements were issued (the "issuance date"), we evaluated whether the following conditions or events, considered in the aggregate, raise substantial doubt about our ability to continue as a going concern over the next twelve months beyond the issuance date. Over the past three fiscal years, we incurred operating losses of $79,890,000, $14,660,000 and $33,752,000 in fiscal 2024, 2023 and 2022, respectively. More recently, we recognized an operating loss of $129,170,000 in the three months ended October 31, 2024. In addition, over the past three fiscal years, net cash used in operating activities was $54,495,000 and $4,433,000 in fiscal 2024 and 2023, respectively, and net cash provided by operating activities was $1,997,000 in fiscal 2022. More recently, net cash used in operating activities was $21,806,000 in the three months ended October 31, 2024. Our ability to meet future anticipated liquidity needs over the next year beyond the issuance date will largely depend on our ability to generate positive cash inflows from operations, maximize our borrowing capacity under our Credit Facility, as discussed further below, and/or secure other sources of outside capital. While we believe we will be able to generate sufficient positive cash inflows, maximize our borrowing capacity and secure outside capital, there can be no assurance our plans will be successfully implemented and, as such, we may be unable to continue as a going concern over the next year beyond the issuance date. As discussed further in Note (10) – Credit Facility, on June 17, 2024, we entered into a $222,000,000 credit facility with a new syndicate of lenders, which replaced our prior credit facility. As further discussed below, we subsequently amended the credit facility on October 17, 2024 (the "Credit Facility"). The Credit Facility consists of a committed $162,000,000 term loan (“Term Loan”) and $60,000,000 revolving loan (“Revolver Loan”). At October 31, 2024 and January 10, 2025 (the date closest to the issuance date), total outstanding borrowings under the Credit Facility were $199,495,000. At both October 31, 2024 and January 10, 2025, $32,500,000 was drawn on the Revolver Loan. As of the issuance date, our available sources of liquidity approximate $28,500,000, consisting solely of qualified cash and cash equivalents. That is, our available sources of liquidity do not include the remaining portion of the committed Revolver Loan due to the revolving lender's and Agent's consent right, discussed below, to any borrowings that exceed $32,500,000. The Credit Facility, among other things, requires compliance with new restrictive and financial covenants, including: a maximum Net Leverage Ratio of 3.25x commencing with the fiscal quarter ending January 31, 2025; a minimum Fixed Charge Coverage Ratio of 1.20x commencing with the four fiscal quarter period ending January 31, 2025; a minimum Average Liquidity requirement at each quarter end of $20,000,000; and a minimum EBITDA of $35,000,000 for the four fiscal quarter period ending October 31, 2025. Such ratios and minimum EBITDA adjust under the Credit Facility in future periods. Over the next twelve months beyond the issuance date, commencing with our fiscal quarter ending January 31, 2025, we believe that we will not be able to comply with one or more of these covenants. The Credit Facility was amended on October 17, 2024 to waive certain defaults or events of default, including in connection with our Net Leverage Ratio and Fixed Charge Coverage Ratio covenants as of July 31, 2024. The amendment also, among other things: (i) increased the interest rate margins applicable to the loans; (ii) modified certain financial and collateral reporting requirements; (iii) provided a consent right to the revolving lender and Agent with respect to $27,500,000 of Revolver Loan borrowings above $32,500,000; (iv) permitted the incurrence of $25,000,000 of senior unsecured subordinated debt (as described below); (v) amended the maturity date to the earlier of (x) July 31, 2028 or (y) 90 days prior to the earliest date that the debt under the Subordinated Credit Agreement (as defined below) becomes due and payable; and (vi) suspended certain financial covenant testing through the end of our fiscal quarter ending January 31, 2025. In addition, we entered into a Subordinated Credit Agreement with the existing holders of our Convertible Preferred Stock (the “Subordinated Credit Agreement”) on October 17, 2024, which provides a subordinated unsecured term loan facility in the aggregate principal amount of $25,000,000 (the “Subordinated Credit Facility”). The proceeds of the Subordinated Credit Facility: (i) cured our default on certain financial covenants under the Credit Facility, as discussed above; (ii) provided additional liquidity to us; and (iii) funded our general working capital needs. Our ability to meet our current obligations as they become due may be impacted by our ability to remain compliant with the financial covenants required by the Credit Facility, or to obtain future waivers or amendments from the lenders in the event compliance is not maintained. While we believe we will be able to secure such waivers or amendments, as needed, there can be no assurance such waivers or amendments will be secured or on terms that are acceptable to us. If we are unable to secure waivers or amendments, the lenders may declare an event of default, which would cause an immediate acceleration and repayment of all outstanding principal, interest and fees due under our Credit Facility. Absent our ability to repay the forgoing amounts upon the declaration of an event of default, the lenders may exercise their rights and remedies under the Credit Facility, which may include, among others, a seizure of substantially all of our assets and/or the liquidation of our operations. If an event of default occurs that allows the lenders to exercise these rights and remedies over the next year beyond the issuance date, we will be unable to continue as a going concern. As of the issuance date, our plans to address our ability to continue as a going concern include, among other things: • executing a strategy to transform Comtech (ongoing and future actions supporting our transformation strategy include: an exploration of strategic alternatives for our various businesses and product lines; the pursuit of further portfolio-shaping opportunities to enhance profitability, efficiency and focus; and the implementation of additional operational initiatives to both achieve profitable results from operations as well as to align our go-forward cost structure with our future state business), as discussed further in Note (21) – Cost Reduction and Restructuring Related Activities; • pursuing initiatives to reduce investments in working capital, namely accounts receivable and inventory; • improving process disciplines to attain and maintain profitable operations by entering into more favorable sales or service contracts; • reevaluating our business plans to identify opportunities (e.g., within each of our segments) to focus future investment on our most strategic, high-margin revenue opportunities; • reevaluating our business plans to identify opportunities to further reduce capital expenditures; • seeking opportunities to improve liquidity through any combination of debt and/or equity financing (including possibly restructuring our Credit Facility, Convertible Preferred Stock and/or Subordinated Credit Facility); and • seeking other strategic transactions and/or measures including, but not limited to, the potential sale or divestiture of assets in addition to the wind down of our steerable antenna product line in Basingstoke, U.K. While we believe the implementation of some or all of the elements of our plans over the next year beyond the issuance date will be successful, these plans are not all solely within management’s control and, as such, we can provide no assurance our plans are probable of being effectively implemented as of the issuance date. Therefore, the adverse conditions and events described above are uncertainties that raise substantial doubt about our ability to continue as a going concern. The accompanying Condensed Consolidated Financial Statements have been prepared on the basis that we will continue to operate as a going concern, which contemplates we will be able to realize assets and settle liabilities and commitments in the normal course of business for the foreseeable future. Accordingly, the accompanying Condensed Consolidated Financial Statements do not include any adjustments that may result from the outcome of these uncertainties. CEO Transition Costs and Related On March 12, 2024, Ken Peterman's employment with the Company was terminated for cause and the Board of Directors (the "Board") appointed John Ratigan as interim CEO and Mark Quinlan as Chairman of the Board ("Chairman"). Prior to the changes, John Ratigan served as our Chief Corporate Development Officer and Mark Quinlan served as a member of our Board. Upon termination of his employment, Ken Peterman was deemed to have resigned from his position as Chairman and as a director pursuant to his employment contract. On October 28, 2024, John Ratigan became our President and CEO. Also, on November 26, 2024, existing Board members, Kenneth H. Traub and Lieutenant General (Retired) Bruce T. Crawford, were appointed Executive Chairman and Lead Independent Director, respectively, and Mark Quinlan resigned from his position as Chairman. During the three months ended October 31, 2024, CEO transition costs were $598,000 and consisted primarily of legal and related expenses in our Unallocated segment. There were no similar costs in the corresponding period of the prior year. Subsequent to quarter end, the Board has named Mr. Traub as President and CEO, effective as of January 13, 2025, in addition to his current role as Chairman, replacing Mr. Ratigan effective immediately. Pursuant to his separation agreement and release, Mr. Ratigan resigned from his position as President and CEO and as a director. Proxy Solicitation Costs On November 17, 2024, we entered into a cooperation agreement (the “Cooperation Agreement”) with Fred Kornberg, Michael Porcelain and Oleg Timoshenko (collectively the “Investor Group”). Pursuant to the Cooperation Agreement, our Board appointed Michael J. Hildebrandt to serve on the Board and agreed to nominate, support and recommend Mr. Hildebrandt for election at our Fiscal 2024 Annual Meeting of Stockholders (the "2024 Annual Meeting"). Also, we agreed not to renominate two incumbent directors for election at the 2024 Annual Meeting and the Investor Group agreed to withdraw its nomination of candidates for election to the Board at the 2024 Annual Meeting to, instead, support our slate of directors for election. Pursuant to the Cooperation Agreement, we and the Investor Group will cooperate to identify an additional candidate to be appointed to the Board at a later date as an independent director. During the three months ended October 31, 2024, we incurred $1,583,000 in proxy solicitation costs, consisting principally of legal and advisory fees. In connection with the Cooperation Agreement and Investor Group’s nomination of candidates to the Board and related matters, the Investor Group is entitled to the reimbursement of its documented out-of-pocket fees and expenses, subject to certain limitations, in an amount not to exceed $350,000. Such amount was expensed and paid in the second quarter of fiscal 2025.

Disposition

Disposition	3 Months Ended
	Oct. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
Disposition	Business Divestitures PST Divestiture - On November 7, 2023, we completed the divestiture of our solid-state RF microwave high power amplifiers and control components product line, which was included in our Satellite and Space Communications segment, pursuant to a stock sale agreement entered into on October 11, 2023 (the "PST Divestiture"). The final sales price for this divestiture was $35,459,000, of which we received $33,277,000 in cash proceeds, net of transaction costs. Based on the carrying amount of net assets related to the PST Divestiture, we recognized a GAAP pre-tax loss of $1,199,000 in fiscal 2024. CGC Divestiture - In fiscal 2024, we performed a detailed evaluation of our Satellite and Space Communications segment's product portfolio to identify opportunities to further divest, separate and/or rationalize non-core businesses or facilities. Consistent with this effort, in our fourth quarter of fiscal 2024, we made the decision to exit our operations in Basingstoke, United Kingdom. Such operations were established in connection with our fiscal 2020 acquisition of CGC Technology Limited, which primarily served customers in Europe. Following the acquisition, Comtech continued to invest in the Basingstoke facility to advance LEO constellation-based antenna technologies in anticipation of significant production orders. Net sales for this product line in fiscal 2024, 2023 and 2022 were $4,001,000, $9,969,000 and $11,188,000, respectively. Operating losses for this product line in fiscal 2024, 2023 and 2022 were $32,331,000, $8,203,000 and $9,897,000, respectively. Taking into consideration the significant ongoing investment as well as unfavorable contract terms on prospective antenna sales, we concluded such operations would not generate an attractive return on invested capital and made the decision to exit these operations (the "CGC Divestiture"). During the three months ended October 31, 2024, we reversed $4,157,000 of net sales and $1,403,000 of related accrued contract costs to account for the termination of various revenue contracts with customers, and expensed $4,925,000 in restructuring charges related to the wind-down of such operations, including a $2,948,000 write-down related to inventory no longer considered salable. While anticipated to improve our future profitability, actions related to the CGC Divestiture may result in additional near-term restructuring charges.

Adoption of Accounting Standard

Adoption of Accounting Standards and Updates	3 Months Ended
	Oct. 31, 2024
Accounting Standards Update and Change in Accounting Principle [Abstract]
Adoption of Accounting Standards and Updates	Adoption of Accounting Standards and Updates We are required to prepare our Condensed Consolidated Financial Statements in accordance with the FASB ASC, which is the source for all authoritative U.S. generally accepted accounting principles, which are commonly referred to as "GAAP." The FASB ASC is subject to updates by the FASB, which are known as Accounting Standards Updates ("ASUs"). During the three months ended October 31, 2024, the following FASB ASUs have been issued and incorporated into the FASB ASC and have not yet been adopted by us as of October 31, 2024: • FASB ASU No. 2023-07, which requires the disclosure of significant segment expenses, by reportable segment, regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. The disclosure of other segment items by reportable segment are also required and would constitute the difference between segment revenues less these significant segment expenses and reported segment profit or loss. On an annual basis, the update requires an entity to disclose the CODM's title and position, as well as describe how the CODM uses the reported measures. Additionally, all existing annual disclosures about segment profit or loss must be provided on an interim basis in addition to the disclosure of significant segment expenses and other segment items. This ASU is effective for fiscal years beginning after December 15, 2023 (our fiscal year beginning on August 1, 2024) and for interim periods within fiscal years beginning after December 15, 2024 (our interim period beginning on August 1, 2025), with early adoption permitted. The adoption of this guidance will impact our disclosures only and we do not expect it to have a material impact on our Condensed Consolidated Financial Statements . • FASB ASU No. 2023-09 enhances and establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Most notably under the new requirements is greater disaggregation of information in the effective tax rate reconciliation, including the inclusion of both percentages and amounts, specific categories, and additional information for reconciling items meeting a quantitative threshold defined by the guidance. Additionally, disclosures of income taxes paid and income tax expense must be disaggregated by federal, state and foreign taxes, with income taxes paid further disaggregated for individual jurisdictions that represent 5 percent or more of total income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 (our fiscal year beginning on August 1, 2025), with early adoption permitted. We are evaluating the impact of this ASU on our Condensed Consolidated Financial Statements and disclosures. • FASB ASU No. 2024-03, which requires more detailed disclosures of certain categories of expenses (including purchases of inventory, employee compensation, depreciation, and amortization) that are components of existing expense captions presented on the face of the income statement. All entities are required to apply the guidance prospectively with an option for retrospective application. This ASU is effective for fiscal years beginning after December 15, 2026 (our fiscal year beginning on August 1, 2027), and interim periods within fiscal years beginning after December 15, 2027 (our interim period beginning on August 1, 2028), with early adoption permitted. We are evaluating the impact of this ASU on our Condensed Consolidated Financial Statements and disclosures.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Oct. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition In accordance with FASB ASC 606, " Revenue from Contracts with Customers " ("ASC 606"), we record revenue in an amount that reflects the consideration to which we expect to be entitled in exchange for goods or services promised to customers. Under ASC 606, we follow a five-step model to: (1) identify the contract with our customer; (2) identify our performance obligations in our contract; (3) determine the transaction price for our contract; (4) allocate the transaction price to our performance obligations; and (5) recognize revenue using one of the following two methods: • Over time - We recognize revenue using the over time method when there is a continuous transfer of control to the customer over the contractual period of performance. This generally occurs when we enter into a long-term contract relating to the design, development or manufacture of complex equipment or technology platforms to a buyer’s specification (or to provide services related to the performance of such contracts) for which we have determined there is no alternative use, as defined in ASC 606. Continuous transfer of control is typically supported by contract clauses which allow our customers to unilaterally terminate a contract for convenience, pay for costs incurred plus a reasonable profit and take control of work-in-process. Revenue recognized over time is generally based on the extent of progress toward completion of the related performance obligations. The selection of the method to measure progress requires judgment and is based on the nature of the products or services provided. In certain instances, typically for firm fixed-price contracts, we use the cost-to-cost measure because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion, including warranty costs. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Costs to fulfill generally include direct labor, materials, subcontractor costs, other direct costs and an allocation of indirect costs. When these contracts are modified, the additional goods or services are generally not distinct from those already provided. As a result, these modifications form part of an existing contract and we must update the transaction price and our measure of progress for the single performance obligation and recognize a cumulative catch-up to revenue and gross profits. For over time contracts using a cost-to-cost measure of progress, we have an estimate at completion ("EAC") process in which management reviews the progress and execution of our performance obligations. This EAC process requires management judgment relative to assessing risks, estimating contract revenue and costs, and making assumptions for schedule and technical issues. Since certain contracts extend over a long period of time, the impact of revisions in revenue and/or cost estimates during the progress of work may impact current period earnings through a cumulative adjustment. Additionally, if the EAC process indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident. Contract revenue and cost estimates for significant contracts are generally reviewed and reassessed at least quarterly. The cost-to-cost method is principally used to account for contracts in our Satellite and Space Communications segment and, to a lesser extent, certain location-based and messaging infrastructure contracts in our public safety and location technologies product line within our Terrestrial and Wireless Networks segment. For service-based contracts in our Terrestrial and Wireless Networks segment, we also recognize revenue over time. These services are typically recognized as a series of services performed over the contract term using the straight-line method, or based on our customers’ actual usage of the networks and platforms which we provide. • Point in time - When a performance obligation is not satisfied over time, we must record revenue using the point in time accounting method which generally results in revenue being recognized upon shipment or delivery of a promised good or service to a customer. This generally occurs when we enter into short-term contracts or purchase orders where items are provided to customers with relatively quick turn-around times. Modifications to such contracts and/or purchase orders, which typically provide for additional quantities or services, are accounted for as a new contract because the pricing for these additional quantities or services are based on standalone selling prices. Point in time accounting is principally applied to contracts in our satellite ground infrastructure product line (which includes satellite modems and traveling wave tube amplifiers). The contracts related to these product lines do not meet the requirements for over time revenue recognition because our customers cannot utilize the equipment for its intended purpose during any phase of our manufacturing process; customers do not simultaneously receive and/or consume the benefits provided by our performance; customers do not control the asset (i.e., prior to delivery, customers cannot direct the use of the asset, sell or exchange the equipment, etc.); and, although many of our contracts have termination for convenience clauses and/or an enforceable right to payment for performance completed to date, our performance creates an asset with an alternative use through the point of delivery. In determining that our equipment has alternative use, we considered the underlying manufacturing process for our products. In the early phases of manufacturing, raw materials and work in process (including subassemblies) consist of common parts that are highly fungible among many different types of products and customer applications. Finished products are either configured to our standard configuration or based on our customers’ specifications. Finished products, whether built to our standard specification or to a customers’ specification, can be sold to a variety of customers and across many different end use applications with minimal rework, if needed, and without incurring a significant economic loss. When identifying a contract with our customer, at inception, we consider approvals and commitments from both parties, if the rights of the parties are identified, if the payment terms are identified, if it has commercial substance, the transaction price to which we are entitled and if collectability is probable. When identifying performance obligations, we consider whether there are multiple promises and how to account for them. In our contracts, multiple promises are separated if they are distinct, both individually and in the context of the contract. If multiple promises in a contract are highly interrelated or comprise a series of distinct services performed over time, they are combined into a single performance obligation. In some cases, we may also provide the customer with an additional service-type warranty, which we recognize as a separate performance obligation. Service-type warranties do not represent a significant portion of our consolidated net sales. When service-type warranties represent a separate performance obligation, the revenue is deferred and recognized ratably over the extended warranty period. Our contracts, from time-to-time, may also include options for additional goods and services. To date, these options have not represented material rights to the customer as the pricing for them reflects standalone selling prices. As a result, we do not consider options we offer to be performance obligations for which we must allocate a portion of the transaction price. In many cases, we provide assurance-type warranty coverage for some of our products for a period of at least one year from the date of delivery. When identifying the transaction price, we typically utilize the contract's stated price as a starting point. The transaction price in certain arrangements may include estimated amounts of variable consideration, including award fees, incentive fees or other provisions that can either increase or decrease the transaction price. We estimate variable consideration as the amount to which we expect to be entitled, and we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the estimation uncertainty is resolved. The estimation of this variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (e.g., historical, current and forecasted) that is reasonably available to us. When allocating the contract’s transaction price, we consider each distinct performance obligation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. We determine standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions, including geographic or regional specific factors, competitive positioning, internal costs, profit objectives and internally approved pricing guidelines related to the performance obligations. Most of our contracts with customers are denominated in U.S. dollars and typically are either firm fixed-price or cost reimbursable type contracts (including fixed-fee, incentive-fee and time-and-material type contracts). In almost all of our contracts with customers, we are the principal in the arrangement and report revenue on a gross basis. Transaction prices for contracts with U.S. domestic and international customers are usually based on specific negotiations with each customer and in the case of the U.S. government, sometimes based on estimated or actual costs of providing the goods or services in accordance with applicable regulations. Sales by geography and customer type, as a percentage of consolidated net sales, are as follows: Three months ended October 31, 2024 2023 United States U.S. government 35.4 % 35.3 % Domestic 48.4 % 40.2 % Total United States 83.8 % 75.5 % International 16.2 % 24.5 % Total 100.0 % 100.0 % Sales to U.S. government customers include sales to the U.S. Department of Defense ("DoD"), intelligence and civilian agencies, as well as sales directly to or through prime contractors. Domestic sales include sales to commercial customers, as well as to U.S. state and local governments. For the three months ended October 31, 2024 and 2023, except for the U.S. government, there were no customers that represented 10.0% or more of consolidated net sales. Except for the U.S., no individual country (including sales to U.S. domestic companies for inclusion in products that are sold to a foreign country) represented 10.0% or more of consolidated net sales for the three months ended October 31, 2024 and 2023. The following tables summarize our disaggregation of revenue consistent with information reviewed by our CODM for the three months ended October 31, 2024 and 2023. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors which impact our business: Three months ended October 31, 2024 Satellite and Space Communications Terrestrial and Wireless Networks Total Geographical region and customer type U.S. government $ 40,427,000 598,000 $ 41,025,000 Domestic 4,847,000 51,160,000 56,007,000 Total United States 45,274,000 51,758,000 97,032,000 International 13,659,000 5,109,000 18,768,000 Total $ 58,933,000 56,867,000 $ 115,800,000 Contract type Firm fixed-price $ 48,261,000 56,867,000 $ 105,128,000 Cost reimbursable 10,672,000 — 10,672,000 Total $ 58,933,000 56,867,000 $ 115,800,000 Transfer of control Point in time $ 30,174,000 722,000 $ 30,896,000 Over time 28,759,000 56,145,000 84,904,000 Total $ 58,933,000 56,867,000 $ 115,800,000 Three months ended October 31, 2023 Satellite and Space Communications Terrestrial and Wireless Networks Total Geographical region and customer type U.S. government $ 53,006,000 596,000 $ 53,602,000 Domestic 15,952,000 45,190,000 61,142,000 Total United States 68,958,000 45,786,000 114,744,000 International 33,430,000 3,737,000 37,167,000 Total $ 102,388,000 49,523,000 $ 151,911,000 Contract type Firm fixed-price $ 85,408,000 49,523,000 $ 134,931,000 Cost reimbursable 16,980,000 — 16,980,000 Total $ 102,388,000 49,523,000 $ 151,911,000 Transfer of control Point in time $ 45,741,000 647,000 $ 46,388,000 Over time 56,647,000 48,876,000 105,523,000 Total $ 102,388,000 49,523,000 $ 151,911,000 The timing of revenue recognition, billings and collections results in receivables, unbilled receivables and contract liabilities on our Condensed Consolidated Balance Sheets . Under typical payment terms for our contracts accounted for over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly) or upon achievement of contractual milestones. For certain contracts with provisions that are intended to protect customers in the event we do not satisfy our performance obligations, billings occur subsequent to revenue recognition, resulting in unbilled receivables. Under ASC 606, unbilled receivables constitute contract assets. Except for certain unbilled receivables (see Note (7) - Accounts Receivable ) and work in process inventory (see Note (8) - Inventories ), there were no other material impairment losses recognized on contract assets during the three months ended October 31, 2024 and 2023, respectively. On large long-term contracts, and for contracts with international customers that do not do business with us regularly, payment terms typically require advanced payments and deposits. Under ASC 606, payments received from customers in excess of revenue recognized to-date results in a contract liability. These contract liabilities are not considered to represent a significant financing component of the contract because we believe these cash advances and deposits are generally used to meet working capital demands which can be higher in the earlier stages of a contract. Also, advanced payments and deposits provide us with some measure of assurance that the customer will perform on its obligations under the contract. Under the typical payment terms for our contracts accounted for at a point in time, costs are accumulated in inventory until the time of billing, which generally coincides with revenue recognition. Of the current contract liability balance of $65,834,000 at July 31, 2024 and $66,351,000 at July 31, 2023, $28,764,000 and $20,737,000 was recognized as revenue during the three months ended October 31, 2024 and 2023, respectively. We recognize the incremental costs to obtain or fulfill a contract as an expense when incurred if the amortization period of the asset is one year or less; otherwise, such costs are capitalized and amortized over the estimated life of the contract. During the three months ended October 31, 2024 and 2023, incremental costs to obtain or fulfill contracts with an amortization period greater than one year were $1,165,000 and $483,000, respectively. Commissions payable to our internal sales and marketing employees or contractors that are incremental to the acquisition of long-term customer contracts are capitalized and amortized consistent with the pattern of revenue recognition through cost of sales on our Condensed Consolidated Statements of Operations . Commissions payable that are not incremental to the acquisition of long-term contracts are expensed as incurred in selling, general and administrative expenses on our Condensed Consolidated Statements of Operations . As for commissions payable to our third-party sales representatives related to large long-term contracts, we consider these types of commissions both direct and incremental costs to obtain and fulfill such contracts. Therefore, such commissions are included in total estimated costs at completion for such contracts and expensed over time through cost of sales on our Condensed Consolidated Statements of Operations . Remaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the end of a fiscal period. Remaining performance obligations, which we refer to as backlog, exclude unexercised contract options and potential orders under indefinite delivery / indefinite quantity ("IDIQ") contracts. As of October 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $810,991,000 (which represents the amount of our consolidated funded backlog). We estimate that a substantial portion of our remaining performance obligations at October 31, 2024 will be completed and recognized as revenue during the next twenty-four month period, with the rest thereafter. During the three months ended October 31, 2024, revenue recognized from performance obligations satisfied, or partially satisfied, in previous periods (for example due to changes in the transaction price) was not material.

Fair Value Measurements and Fin

Fair Value Measurements and Financial Instruments	3 Months Ended
	Oct. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements and Financial Instruments	Fair Value Measurements and Financial Instruments Using the fair value hierarchy described in FASB ASC 820 " Fair Value Measurements and Disclosures," we valued our cash and cash equivalents using Level 1 inputs that were based on quoted market prices. We believe that the carrying amounts of our other current financial assets (such as accounts receivable) and other current liabilities (including accounts payable, accrued expenses and the current portion of long-term debt) approximate their fair values due to their short-term maturities. Additionally, the carrying amounts of our debt approximate their fair values due to variable interest rates and pricing grids related to such debt, as amended or first entered into on October 17, 2024. Level 3 inputs are unobservable inputs developed using the best available information under the circumstances. Level 3 inputs are supported by little or no market activity, are significant to the fair value of the assets or liabilities and reflect our assumptions related to how market participants would use similar inputs to price the asset or liability. As further discussed in Note (10) - Credit Facility, we used Level 3 inputs to value the warrants issued to lenders in connection with our Credit Facility. As of October 31, 2024, we determined the fair value of such warrants based on the Black-Scholes option pricing model using the following estimates: exercise price of $0.10, risk free rate of 4.2%, volatility of 60.0%, and expected life of 6.6 years. We also used Level 3 inputs to value the combined embedded derivative liability associated with our Credit Facility. As of October 31, 2024, we determined the fair value of the combined embedded derivative liability using a with-and-without scenario-based discounted cash flow method, which reflected our estimates regarding the probability and timing of events that could result in additional payments of interest and/or fees to such lenders as stated in our Credit Facility. As further discussed in Note (11) - Subordinated Credit Facility, we used Level 3 inputs to value the make-whole amount and combined embedded derivative liability associated with our Subordinated Credit Facility. As of October 31, 2024, we determined the fair value of the combined embedded derivative liability using a with-and-without scenario-based discounted cash flow method, which reflected our estimates regarding the probability and timing of events that could result in additional payments of interest and/or fees to such lenders as stated in our Subordinated Credit Facility. As further discussed in Note (18) - Convertible Preferred Stock, we used Level 3 inputs to value the warrants contingently issuable and combined embedded derivative liability associated with our Convertible Preferred Stock. As of October 31, 2024, we determined the fair value of Convertible Preferred Stock warrants using the Monte Carlo simulation model with the following assumptions: expected life of 6.2 years; risk free rate of 4.2%; expected volatility of 60.0%; and dividend yield of 0%. As of October 31, 2024, we determined the fair value of the combined embedded derivative liability using a with-and-without scenario-based discounted cash flow method, which reflected our estimates regarding the probability and timing of events that could result in additional and/or accelerated payments to our preferred shareholders, or the conversion of the Convertible Preferred Stock into common stock, pursuant to the terms of our Convertible Preferred Stock. As of October 31, 2024 and July 31, 2024, other than the financial instruments discussed above, we had no other significant assets or liabilities included in our Condensed Consolidated Balance Sheets recorded at fair value, as such term is defined by FASB ASC 820.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Oct. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Our basic earnings per share ("EPS") is computed based on the weighted average number of common shares (including vested but unissued stock units, share units, performance shares and restricted stock units ("RSUs")) outstanding during each respective period. Our diluted EPS reflects the dilution from potential common stock issuable pursuant to the exercise of equity-classified stock-based awards, warrants issued to our lenders in connection with entering the Credit Facility, settlement of escrow arrangements related to our acquisition of UHP Networks Inc. ("UHP") and the assumed conversion of Convertible Preferred Stock, if dilutive, outstanding during each respective period. The warrants contingently issuable to our preferred shareholders upon a repurchase of the Series B-2 Convertible Preferred Stock are not reflected in diluted EPS. Pursuant to FASB ASC 260 " Earnings Per Share " ("ASC 260"), shares whose issuance is contingent upon the satisfaction of certain conditions are included in diluted EPS based on the number of shares, if any, that would be issuable if the end of the reporting period were the end of the contingency period. When calculating our diluted earnings per share, we consider the amount an employee must pay upon assumed exercise of stock-based awards and the amount of stock-based compensation cost attributed to future services and not yet recognized. There were no repurchases of our common stock during the three months ended October 31, 2024 and 2023. See Note (19) - Stockholders’ Equity for more information. Weighted average stock options, RSUs and restricted stock outstanding of 986,000 and 1,168,000 shares for the three months ended October 31, 2024 and 2023, respectively, were not included in our diluted EPS calculation because their effect would have been anti-dilutive. Our EPS calculations exclude 349,000 and 680,000 weighted average performance shares outstanding for the three months ended October 31, 2024 and 2023, respectively, as the performance conditions have not yet been satisfied. However, the numerator for EPS calculations for each respective period is reduced by the compensation expense related to these awards. Weighted average common shares of 1,414,000 related to warrants issued in connection with entering the Credit Facility on June 17, 2024 were not included in our diluted EPS calculation for the three months ended October 31, 2024 because their effect would have been anti-dilutive. Weighted average common shares of 162,000 for the three months ended October 31, 2023 related to our acquisition of UHP in March 2021 were not included in our diluted EPS calculation because their effect would have been anti-dilutive. As of July 31, 2024, all of the shares held in escrow related to the UHP acquisition were settled. Weighted average common shares of 23,053,000 and 4,757,000 underlying the assumed conversion of convertible preferred stock, on an if-converted basis, were not included in our diluted EPS calculation for the three months ended October 31, 2024 and 2023, respectively, because their effect would have been anti-dilutive. As a result, the numerator for our basic and diluted EPS calculation for the three months ended October 31, 2024 and 2023 is the respective net loss attributable to common stockholders. The following table reconciles the numerators and denominators used in the basic and diluted EPS calculations: Three months ended October 31, 2024 2023 Numerator: Net loss $ (148,407,000) (1,437,000) Gain on extinguishment of convertible preferred stock 51,179,000 — Dividend on convertible preferred stock (58,634,000) (1,823,000) Net loss attributable to common stockholders $ (155,862,000) (3,260,000) Denominator: Denominator for basic and diluted calculation 29,446,000 28,745,000 As discussed further in Note (18) - Convertible Preferred Stock , such shares of preferred stock represent a "participating security" as defined in ASC 260. As a result, our EPS calculations for the three months ended October 31, 2024 and 2023 were based on the two-class method. Given the net loss attributable to common stockholders for the three months ended October 31, 2024 and 2023, there was no impact of applying the two-class method to our reported basic or diluted earnings per common share.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Oct. 31, 2024
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consist of the following at: October 31, 2024 July 31, 2024 Receivables from commercial and international customers $ 56,824,000 53,108,000 Unbilled receivables from commercial and international customers 73,896,000 72,540,000 Receivables from the U.S. government and its agencies 31,747,000 20,682,000 Unbilled receivables from the U.S. government and its agencies 37,772,000 51,197,000 Total accounts receivable 200,239,000 197,527,000 Less allowance for doubtful accounts 19,375,000 1,932,000 Accounts receivable, net $ 180,864,000 195,595,000 Unbilled receivables as of October 31, 2024 relate to contracts-in-progress for which revenue has been recognized, but for which we have not yet earned the right to bill the customer for work performed to-date. Under ASC 606, unbilled receivables constitute contract assets. In the first quarter of fiscal 2025, we reversed cumulative revenues and associated contract receivables due to changes in estimates of revenue and costs for certain contracts. With respect to such changes in estimates, we: • determined that an unbilled receivable contract asset in the amount of $18,993,000, related to an international customer and reseller of our troposcatter technologies, was at risk of not being invoiced or collected, principally due to our customer's near-term ability to secure certain opportunities in its pipeline. As a result, and considering that we offered a price concession (i.e., variable consideration) to our customer in the first quarter of fiscal 2025, we reversed $1,551,000 of cumulative revenue and associated unbilled receivable contract assets related to this transaction, and recorded a non-cash charge to fully reserve for the remaining $17,442,000 unbilled receivable contract asset within our allowance for doubtful accounts; • reversed $1,004,000 of cumulative revenue and associated unbilled receivable contract assets as a result of being assessed late delivery penalties during the quarter on a separate contract to deliver Modular Transportable Transmission Systems (or "MTTS" troposcatter solutions) to the same international customer referenced above; • reversed $4,157,000 of cumulative revenue and $3,003,000 of associated unbilled receivable contract assets as a result of terminating certain customer contracts during the quarter in connection with the CGC Divestiture; and • reversed $1,360,000 of cumulative revenue and $1,281,000 of associated unbilled receivable contract assets due to higher expected costs at completion identified during the quarter, as we advanced certain nonrecurring engineering related projects in our satellite ground infrastructure product line through development and toward production. After adjusting for those amounts identified above, management estimates that a substantial portion of the remaining contract assets not yet billed at October 31, 2024 will be billed and collected within one year. Accounts receivable in the table above excludes $824,000 of long-term unbilled receivables presented within "Other assets, net" on the Condensed Consolidated Balance Sheets as of July 31, 2024. As of October 31, 2024, the U.S. government (and its agencies), an international customer and reseller of our troposcatter technologies and AT&T, represented 34.7%, 11.6% and 11.4% of total accounts receivable, respectively. There were no other customers which accounted for greater than 10% of total accounts receivable.

Inventories

Inventories	3 Months Ended
	Oct. 31, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following at: October 31, 2024 July 31, 2024 Raw materials and components $ 74,920,000 72,820,000 Work-in-process and finished goods 37,330,000 38,587,000 Total inventories 112,250,000 111,407,000 Less reserve for excess and obsolete inventories 30,446,000 18,271,000 Inventories, net $ 81,804,000 93,136,000 As of October 31, 2024 and July 31, 2024, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $3,021,000 and $2,869,000, respectively, and the amount of inventory related to contracts from third-party commercial customers who outsource their manufacturing to us was $2,098,000 and $2,204,000, respectively. As discussed in Note (1) – General – Liquidity and Going Concern, in connection with our initiatives to transform our Company (e.g., reevaluating our business plans to identify opportunities to focus future investment on our most strategic, high-margin revenue opportunities), during the three months ended October 31, 2024, we recorded a non-cash charge of $11,369,000 within Cost of Sales on our Condensed Consolidated Statement of Operations. Such non-cash charge primarily related to the write down of inventory associated with approximately 70 products within our satellite ground infrastructure product line that were either discontinued or being de-emphasized going forward. As discussed in Note (2) – Business Divestitures , such non-cash charge also included the write down of inventory associated with the CGC Divestiture, which was determined during the first quarter of fiscal 2025 to no longer be salable.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Oct. 31, 2024
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following at: October 31, 2024 July 31, 2024 Accrued wages and benefits $ 18,612,000 22,131,000 Accrued contract costs 11,498,000 17,267,000 Accrued warranty obligations 7,849,000 7,049,000 Accrued commissions and royalties 5,243,000 5,396,000 Accrued legal costs 3,491,000 3,092,000 Other 9,691,000 7,310,000 Accrued expenses and other current liabilities $ 56,384,000 62,245,000 Accrued contract costs represent direct and indirect costs on contracts as well as estimates of amounts owed for invoices not yet received from vendors or reflected in accounts payable. Accrued warranty obligations as of October 31, 2024 relate to estimated liabilities for assurance type warranty coverage that we provide to our customers. We generally provide warranty coverage for some of our products for a period of at least one year from the date of delivery. We record a liability for estimated warranty expense based on historical claims, product failure rates, consideration of contractual obligations, future costs to resolve software issues and other factors. Some of our product warranties are provided under long-term contracts, the costs of which are incorporated into our estimates of total contract costs. Changes in our accrued warranty obligations during the three months ended October 31, 2024 and 2023 were as follows: Three months ended October 31, 2024 2023 Balance at beginning of period $ 7,049,000 8,285,000 Provision for warranty obligations 1,168,000 1,694,000 Charges incurred (368,000) (311,000) PST Divestiture — (418,000) Balance at end of period $ 7,849,000 9,250,000

Credit Facility

Credit Facility	3 Months Ended
	Oct. 31, 2024
Line of Credit Facility [Abstract]
Credit Facility	Credit Facility On June 17, 2024, we entered into a $222,000,000 senior secured loan facility with a syndicate of lenders which replaced our prior credit facility and, as further discussed below, we subsequently amended the credit facility on October 17, 2024 (the “Credit Facility”). The Credit Facility consists of: (i) a $162,000,000 term loan (the "Term Loan" facility) and an asset-based revolving credit facility with revolving commitments in an aggregate principal amount of $60,000,000, subject to borrowing base limitations as described below (the "Revolving Loan" facility). At closing, $25,000,000 of the Revolving Loan was funded and, together with the Term Loan, the proceeds were used to repay the prior credit facility in full and for working capital and other general corporate purposes. The obligations under the Credit Facility are guaranteed by certain of our domestic and foreign subsidiaries (the “Guarantors), who have granted for the benefit of the lenders, a lien on, and first priority security interest in, substantially all of our tangible and intangible assets. On October 17, 2024, we entered into an amendment in order to waive certain defaults or events of default that occurred, including in connection with our Net Leverage Ratio and Fixed Charge Coverage Ratio covenants for our fourth quarter of fiscal 2024. The amendment also, among other things: (i) increased the interest rate margins applicable to the loans (as described in further detail below); (ii) modified certain financial and collateral reporting requirements; (iii) provided a consent right to the revolving lender and Agent with respect to $27,500,000 of revolver borrowings above $32,500,000, (iv) permitted the incurrence of $25,000,000 of senior unsecured subordinated debt (as described further in Note (11) – Subordinated Credit Facility ), (v) amended the maturity date to the earlier of (x) July 31, 2028 or (y) 90 days prior to the earliest date that the debt under the Subordinated Credit Agreement becomes due and payable (the “Senior Credit Facility Maturity Date”) and (vi) suspended certain financial covenant testing through the end of the fiscal quarter ending January 31, 2025. We accounted for the amendment to our Credit Facility as a modification. In connection with entering the Credit Facility, the Term Loan lenders received 1,435,884 detachable warrants ("Lender warrants") granted at an exercise price of $0.10 per common share which entitles the Term Loan lenders to purchase 1,435,884 shares of our common stock from us at any time and from time to time after the Closing Date and on or prior to June 17, 2031, subject to certain adjustments. If the Term Loan is refinanced, the Term Loan lenders have the right to sell up to 50.0% of the warrants back to us for cash, at a 10.0% discount to the 30-day volume weighted average price of our common stock, subject to certain adjustments. We determined that the Lender warrants met the definition of a freestanding financial instrument that should be accounted for as a liability. We established an initial Lender warrant liability of $3,011,000 which was allocated as a discount against the Term Loan proceeds. The Lender warrant liability is classified in "Other liabilities" on the Condensed Consolidated Balance Sheets and is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs, until the Lender warrants are exercised or expire. Changes in the estimated fair value of the Lender warrant liability are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024 and July 31, 2024, the Lender warrant liability was remeasured to $5,234,000 and $4,544,000, respectively, resulting in a non-cash expense for the three months ended October 31, 2024 of $690,000 recorded in "Other expenses (income) - Change in fair value of warrants and derivatives" on the Condensed Consolidated Statements of Operations . Additionally, we identified several embedded derivatives that require bifurcation from the Credit Facility under ASC 815-15 "Embedded Derivatives" ("ASC 815"). Certain of these embedded features include contingent event of default and going concern interest rate increases and/or fees, which qualify for accounting as one combined embedded derivative liability. We established an initial embedded derivative liability of $3,116,000, which was allocated as a discount against the Term Loan proceeds. The combined embedded derivative liability is presented with the host instrument as part of the amount outstanding under the Credit Facility on the Condensed Consolidated Balance Sheets , and is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs, until the embedded derivative features have zero probability of occurring or expire. Changes in the estimated fair value of the combined embedded derivative liability are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024 and July 31, 2024, the combined embedded derivative liability was remeasured to $4,992,000 and $3,041,000, respectively, resulting in non-cash expense for the three months ended October 31, 2024 of $1,951,000 recorded in " Other expenses (income) - Change in fair value of warrants and derivatives " on the Condensed Consolidated Statements of Operations . In connection with entering the Credit Facility, we paid fees of $15,035,000, including: (i) $9,979,000 of deferred financing fees (of which $6,626,000 and $3,353,000 was attributable to the Term Loan and Revolving Loan, respectively); and (ii) $5,056,000 of closing fees (representing approximately 3.0% of the Term Loan commitment plus certain other reimbursable expenses paid directly to the Term Loan lenders and accounted for as a discount against the Term Loan proceeds). Additionally, a $2,430,000 Term Loan exit fee, which was earned on the closing date and is payable directly to the Term Loan lenders at maturity or earlier was accounted for as a discount against the Term Loan proceeds. In connection with amending the Credit Facility on October 17, 2024, the borrowing capacity of the Revolver Loan was limited by the consent right of the revolving lender and Agent, thus a pro-rata amount of deferred financing fees totaling $1,412,000 were immediately expensed during three months ended October 31, 2024. Also, a $3,250,000 amendment fee was paid in kind and added to the outstanding Term Loan amount and accounted for as a discount against the Term Loan during the three months ended October 31, 2024. As of October 31, 2024, total net deferred financing costs related to the Credit Facility were $8,117,000. Deferred financing fees and discounts attributable to the Term Loan are amortized as interest expense over the life of the debt through the Senior Credit Facility Maturity Date and are presented as a deduction to the borrowings outstanding under the Term Loan. Deferred financing fees attributable to the Revolving Loan are capitalized on the Condensed Consolidated Balance Sheets and amortized as interest expense over the life of the debt. The amount outstanding under our Credit Facility was as follows: October 31, 2024 July 31, 2024 Term Loan $ 166,995,000 $ 161,663,000 Less unamortized deferred financing costs related to Term Loan 6,181,000 6,425,000 Less unamortized discount related to Term Loan 15,926,000 13,202,000 Term Loan, net 144,888,000 142,036,000 Revolving Loan 32,500,000 32,500,000 Embedded derivative related to Credit Facility 4,992,000 3,041,000 Amount outstanding under Credit Facility, net $ 182,380,000 177,577,000 Less current portion of credit facility, net 182,380,000 4,050,000 Non-current portion of credit facility, net $ — $ 173,527,000 During the three months ended October 31, 2024, we reclassified the combined embedded derivative liability balance as of July 31, 2024 from " Other liabilities" on the Condensed Consolidated Balance Sheets to conform to the current period presentation. During the three months ended October 31, 2024, we had outstanding balances under our Credit Facility ranging from $194,163,000 to $199,495,000. Interest expense related to our Credit Facility, including amortization of deferred financing costs recorded during the three months ended October 31, 2024, was $9,252,000. Interest expense related to our prior credit facility, including amortization of deferred financing costs recorded during the three months ended October 31, 2023, was $4,910,000. Our blended interest rate approximated 19.0% and 10.5%, respectively, for the three months ended October 31, 2024 and 2023. Availability under the Revolving Loan is subject to eligibility criteria set forth in the Credit Facility, and equal to a borrowing base in an amount equal to, from time to time: (a) 85% of the net book value of billed and invoiced accounts receivables of the Borrowing Base Parties; plus (b) 85% of the net book value of accounts receivables that the Borrowing Base Parties have the right to bill but have not yet billed up to the lesser of (i) 12.5% of the amount calculated pursuant to the sum of clauses (a) and (b) and (ii) $15.0 million of such accounts; plus (c) 60% of the net book value of all inventory of the Borrowing Base Parties, less (d) customary reserves. As of October 31, 2024 and July 31, 2024, our eligible Borrowing Base collateral, as defined under the Revolving Loan, was $122,999,000 and $114,661,000, respectively. Under the Credit Facility, the interest rate margins that are applicable to the Revolving Loan increased by 1.00% at each level. Accordingly, the Credit Facility, as amended, provides that Revolving Loans comprised of (i) Base Rate Loans shall bear interest at the Base Rate plus an additional margin ranging from 4.75% to 5.25%; and (ii) SOFR Loans shall bear interest at the Term SOFR rate plus an additional margin ranging from 5.75% to 6.25%, each depending on the average quarterly revolving loan usage during the applicable determination period. The Credit Facility, as amended, provides that the interest rate margins on the Term Loans are 12.00% per annum for Base Rate Loans and 13.00% per annum for SOFR Loans until the first business day of the month following January 31, 2025, when the Company has delivered financial statements demonstrating compliance with the financial covenants under the Credit Facility. If demonstrated, the interest rate margins revert to the margins provided under the Credit Facility prior to the amendment with respect to Term Loans, specifically, (i) Base Rate Loans shall bear interest at the Base Rate plus an additional margin ranging from 7.50% to 9.00%; and (ii) SOFR Loans shall bear interest at the Term SOFR rate plus an additional margin ranging from 8.50% to 10.00%, each depending on our Net Leverage Ratio during the applicable determination period. The Credit Facility provides for an unused line fee of 0.50% per annum on the average unused Revolving Loan commitment, with no fee payable on the $27,500,000 commitment subject to the consent right of the revolving lender and Agent. The Term Loan is subject to 2.50% amortization per annum. The first Term Loan repayment of $675,000 was paid on July 31, 2024. Under the amended Credit Facility, the next Term Loan repayment in the amount of $4,050,000 is due July 31, 2025 with quarterly Term Loan repayments of $1,012,500 payable on the last business day of each fiscal quarter thereafter, with the remaining Term Loan balance due on the Senior Credit Facility Maturity Date. The Credit Facility contains: (a) customary representations, warranties and affirmative covenants; (b) customary conditions to drawing the Revolver; (c) customary negative covenants, subject to negotiated exceptions, including but not limited to: (i) liens, (ii) investments, (iii) indebtedness, (iv) significant corporate changes, including mergers and acquisitions, (v) dispositions, including the disposition of assets by any Loan Party to any Subsidiary that is not a Subsidiary Loan Party, (vi) restricted payments, including stockholder dividends, (vii) distributions, including the repayment of subordinated intercompany and third party indebtedness, and (viii) certain other restrictive agreements; (d) certain financial covenants (see below); (e) customary optional and mandatory prepayment events; and (f) customary events of default (subject to grace periods, as appropriate), such as payment defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency, the occurrence of a defined change in control and the failure to observe the negative covenants and other covenants related to the operation of our business. In addition, under certain circumstances, we may be required to enter into amendments to the Credit Facility in connection with any further syndication of the Credit Facility. Under the Credit Facility, we are required to comply with certain financial covenants, including: a maximum Net Leverage Ratio of 3.25x, commencing with the fiscal quarter ending January 31, 2025; a minimum Fixed Charge Coverage Ratio of 1.20x, commencing with the four fiscal quarter period ending January 31, 2025; a minimum Average Liquidity requirement at each fiscal quarter end of $20,000,000; and a minimum EBITDA of $35,000,000 for the four fiscal quarter period ending October 31, 2025. Over the next twelve months beyond the issuance date, commencing with our fiscal quarter ending January 31, 2025, we believe that we will not be able to comply with one or more of these covenants. As a result, all amounts outstanding under our Credit Facility have been presented as "Current portion of credit facility, net" on our Condensed Consolidated Balance Sheets as of October 31, 2024. Capitalized terms used but not defined herein have the meanings set forth for such terms in the Credit Facility, which have been or will be documented and filed with the SEC. Subordinated Credit Facility On October 17, 2024 (the "closing date"), we entered into a subordinated credit agreement with the existing holders of our convertible preferred stock and U.S. Bank Trust Company, National Association, as agent (the “Subordinated Credit Agreement”) which provided a subordinated unsecured term loan facility in the aggregate principal amount of $25,000,000 (the “Subordinated Credit Facility”). The proceeds of the Subordinated Credit Facility: (i) cured our default on certain financial covenants under the Credit Facility with respect to the fourth quarter of fiscal 2024; (ii) provided us with additional liquidity; and (iii) funded our general working capital needs. The obligations under the Subordinated Credit Facility mature 90 days after the Senior Credit Facility Maturity Date, as discussed in Note (10) – Credit Facility. The Subordinated Credit Facility is subject to a Make-Whole Amount with respect to certain repayments or prepayments. The Make-Whole Amount is an amount equal to: (i) from the closing date through (but not including) the date that is nine months thereafter, the principal repayment amount multiplied by 33.0%; (ii) from the date that is nine months after the closing date through (but not including) the date that is the second anniversary of the closing date, the principal repayment amount multiplied by 50.0%; (iii) from the second anniversary of the closing date and thereafter, the principal repayment amount multiplied by 75.0% plus, in the case of clause (iii), interest accrued on the principal amount outstanding at the Make-Whole Interest Rate (as defined below) starting on the second anniversary of the closing date and calculated as of any such date of determination. The Make-Whole Interest Rate is a rate equal to 16.0% per annum, which is increased by 2.0% per annum upon the occurrence and during the continuation of an event of default under the Subordinated Credit Facility. We identified an embedded derivative related to redemption features that requires bifurcation from the Subordinated Credit Facility under ASC 815 . We established an initial embedded derivative liability of $3,318,000, which was allocated as a discount against the Subordinated Credit Facility proceeds. The embedded derivative liability is presented with the "Current portion of subordinated credit facility, net" on the Condensed Consolidated Balance Sheets and is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs. Changes in the estimated fair value of the embedded derivative liability are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024, the embedded derivative liability was remeasured to $3,566,000, resulting in non-cash expense of $248,000 for the three months ended October 31, 2024, recorded in " Other expenses (income) - Change in fair value of warrants and derivatives " on the Condensed Consolidated Statements of Operations . In connection with entering the Subordinated Credit Facility, we paid financing fees of $1,761,000, which were accounted for as deferred financing costs. Deferred financing costs, discounts and the Make-Whole Amount are amortized as interest expense through the Subordinated Credit Facility maturity date, and are presented as adjustments to the borrowings outstanding under such debt. Interest expense related to our Subordinated Credit Facility for the three months ended October 31, 2024 was $248,000. The following table presents a reconciliation of the amount understanding under the Subordinated Credit Facility to its net carrying value: October 31, 2024 Subordinated Credit Facility $ 25,000,000 Less: Unamortized deferred financing costs 1,740,000 Less: Unamortized discount 3,284,000 Accretion of Make-Whole Amount 193,000 Subordinated Credit Facility, net - subtotal 20,169,000 Plus: Embedded derivative related to redemption features 3,566,000 Amount outstanding under the Subordinated Credit Facility 23,735,000 Less: Current portion of Subordinated Credit Facility, net (23,735,000) Non-current portion of Subordinated Credit Facility, net $ — The obligations under the Subordinated Credit Facility are guaranteed by the same guarantors under the Credit Facility . The Subordinated Credit Facility contains customary representations, warranties and affirmative covenants, in each case substantially consistent with the representations and warranties and affirmative covenants under the amended Credit Agreement. The Subordinated Credit Facility contains customary negative covenants, subject to negotiated exceptions, including but not limited to: (i) liens, (ii) investments, (iii) indebtedness, (iv) significant corporate changes, including mergers and acquisitions, (v) dispositions, (vi) restricted payments, including stockholder dividends, (vii) customary optional and mandatory prepayment events and (viii) certain other restrictive agreements. The outstanding Subordinated Credit Facility will not be considered debt for purposes of our financial covenant testing under the Credit Facility. However, the Subordinated Credit Facility includes a cross-default provision, whereby a default under the Credit Facility constitutes a default under the Subordinated Credit Facility. Accordingly, consistent with the presentation of our Credit Facility as a current liability, the amount of debt outstanding under the Subordinated Credit Facility has also been presented as a current liability on our Condensed Consolidated Balance Sheet as of October 31, 2024. Capitalized terms used but not defined herein have the meanings set forth for such terms in the Subordinated Credit Facility, which has been documented and filed with the SEC.

Subordinated Credit Facility

Subordinated Credit Facility	3 Months Ended
	Oct. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Subordinated Credit Facility	Credit Facility On June 17, 2024, we entered into a $222,000,000 senior secured loan facility with a syndicate of lenders which replaced our prior credit facility and, as further discussed below, we subsequently amended the credit facility on October 17, 2024 (the “Credit Facility”). The Credit Facility consists of: (i) a $162,000,000 term loan (the "Term Loan" facility) and an asset-based revolving credit facility with revolving commitments in an aggregate principal amount of $60,000,000, subject to borrowing base limitations as described below (the "Revolving Loan" facility). At closing, $25,000,000 of the Revolving Loan was funded and, together with the Term Loan, the proceeds were used to repay the prior credit facility in full and for working capital and other general corporate purposes. The obligations under the Credit Facility are guaranteed by certain of our domestic and foreign subsidiaries (the “Guarantors), who have granted for the benefit of the lenders, a lien on, and first priority security interest in, substantially all of our tangible and intangible assets. On October 17, 2024, we entered into an amendment in order to waive certain defaults or events of default that occurred, including in connection with our Net Leverage Ratio and Fixed Charge Coverage Ratio covenants for our fourth quarter of fiscal 2024. The amendment also, among other things: (i) increased the interest rate margins applicable to the loans (as described in further detail below); (ii) modified certain financial and collateral reporting requirements; (iii) provided a consent right to the revolving lender and Agent with respect to $27,500,000 of revolver borrowings above $32,500,000, (iv) permitted the incurrence of $25,000,000 of senior unsecured subordinated debt (as described further in Note (11) – Subordinated Credit Facility ), (v) amended the maturity date to the earlier of (x) July 31, 2028 or (y) 90 days prior to the earliest date that the debt under the Subordinated Credit Agreement becomes due and payable (the “Senior Credit Facility Maturity Date”) and (vi) suspended certain financial covenant testing through the end of the fiscal quarter ending January 31, 2025. We accounted for the amendment to our Credit Facility as a modification. In connection with entering the Credit Facility, the Term Loan lenders received 1,435,884 detachable warrants ("Lender warrants") granted at an exercise price of $0.10 per common share which entitles the Term Loan lenders to purchase 1,435,884 shares of our common stock from us at any time and from time to time after the Closing Date and on or prior to June 17, 2031, subject to certain adjustments. If the Term Loan is refinanced, the Term Loan lenders have the right to sell up to 50.0% of the warrants back to us for cash, at a 10.0% discount to the 30-day volume weighted average price of our common stock, subject to certain adjustments. We determined that the Lender warrants met the definition of a freestanding financial instrument that should be accounted for as a liability. We established an initial Lender warrant liability of $3,011,000 which was allocated as a discount against the Term Loan proceeds. The Lender warrant liability is classified in "Other liabilities" on the Condensed Consolidated Balance Sheets and is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs, until the Lender warrants are exercised or expire. Changes in the estimated fair value of the Lender warrant liability are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024 and July 31, 2024, the Lender warrant liability was remeasured to $5,234,000 and $4,544,000, respectively, resulting in a non-cash expense for the three months ended October 31, 2024 of $690,000 recorded in "Other expenses (income) - Change in fair value of warrants and derivatives" on the Condensed Consolidated Statements of Operations . Additionally, we identified several embedded derivatives that require bifurcation from the Credit Facility under ASC 815-15 "Embedded Derivatives" ("ASC 815"). Certain of these embedded features include contingent event of default and going concern interest rate increases and/or fees, which qualify for accounting as one combined embedded derivative liability. We established an initial embedded derivative liability of $3,116,000, which was allocated as a discount against the Term Loan proceeds. The combined embedded derivative liability is presented with the host instrument as part of the amount outstanding under the Credit Facility on the Condensed Consolidated Balance Sheets , and is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs, until the embedded derivative features have zero probability of occurring or expire. Changes in the estimated fair value of the combined embedded derivative liability are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024 and July 31, 2024, the combined embedded derivative liability was remeasured to $4,992,000 and $3,041,000, respectively, resulting in non-cash expense for the three months ended October 31, 2024 of $1,951,000 recorded in " Other expenses (income) - Change in fair value of warrants and derivatives " on the Condensed Consolidated Statements of Operations . In connection with entering the Credit Facility, we paid fees of $15,035,000, including: (i) $9,979,000 of deferred financing fees (of which $6,626,000 and $3,353,000 was attributable to the Term Loan and Revolving Loan, respectively); and (ii) $5,056,000 of closing fees (representing approximately 3.0% of the Term Loan commitment plus certain other reimbursable expenses paid directly to the Term Loan lenders and accounted for as a discount against the Term Loan proceeds). Additionally, a $2,430,000 Term Loan exit fee, which was earned on the closing date and is payable directly to the Term Loan lenders at maturity or earlier was accounted for as a discount against the Term Loan proceeds. In connection with amending the Credit Facility on October 17, 2024, the borrowing capacity of the Revolver Loan was limited by the consent right of the revolving lender and Agent, thus a pro-rata amount of deferred financing fees totaling $1,412,000 were immediately expensed during three months ended October 31, 2024. Also, a $3,250,000 amendment fee was paid in kind and added to the outstanding Term Loan amount and accounted for as a discount against the Term Loan during the three months ended October 31, 2024. As of October 31, 2024, total net deferred financing costs related to the Credit Facility were $8,117,000. Deferred financing fees and discounts attributable to the Term Loan are amortized as interest expense over the life of the debt through the Senior Credit Facility Maturity Date and are presented as a deduction to the borrowings outstanding under the Term Loan. Deferred financing fees attributable to the Revolving Loan are capitalized on the Condensed Consolidated Balance Sheets and amortized as interest expense over the life of the debt. The amount outstanding under our Credit Facility was as follows: October 31, 2024 July 31, 2024 Term Loan $ 166,995,000 $ 161,663,000 Less unamortized deferred financing costs related to Term Loan 6,181,000 6,425,000 Less unamortized discount related to Term Loan 15,926,000 13,202,000 Term Loan, net 144,888,000 142,036,000 Revolving Loan 32,500,000 32,500,000 Embedded derivative related to Credit Facility 4,992,000 3,041,000 Amount outstanding under Credit Facility, net $ 182,380,000 177,577,000 Less current portion of credit facility, net 182,380,000 4,050,000 Non-current portion of credit facility, net $ — $ 173,527,000 During the three months ended October 31, 2024, we reclassified the combined embedded derivative liability balance as of July 31, 2024 from " Other liabilities" on the Condensed Consolidated Balance Sheets to conform to the current period presentation. During the three months ended October 31, 2024, we had outstanding balances under our Credit Facility ranging from $194,163,000 to $199,495,000. Interest expense related to our Credit Facility, including amortization of deferred financing costs recorded during the three months ended October 31, 2024, was $9,252,000. Interest expense related to our prior credit facility, including amortization of deferred financing costs recorded during the three months ended October 31, 2023, was $4,910,000. Our blended interest rate approximated 19.0% and 10.5%, respectively, for the three months ended October 31, 2024 and 2023. Availability under the Revolving Loan is subject to eligibility criteria set forth in the Credit Facility, and equal to a borrowing base in an amount equal to, from time to time: (a) 85% of the net book value of billed and invoiced accounts receivables of the Borrowing Base Parties; plus (b) 85% of the net book value of accounts receivables that the Borrowing Base Parties have the right to bill but have not yet billed up to the lesser of (i) 12.5% of the amount calculated pursuant to the sum of clauses (a) and (b) and (ii) $15.0 million of such accounts; plus (c) 60% of the net book value of all inventory of the Borrowing Base Parties, less (d) customary reserves. As of October 31, 2024 and July 31, 2024, our eligible Borrowing Base collateral, as defined under the Revolving Loan, was $122,999,000 and $114,661,000, respectively. Under the Credit Facility, the interest rate margins that are applicable to the Revolving Loan increased by 1.00% at each level. Accordingly, the Credit Facility, as amended, provides that Revolving Loans comprised of (i) Base Rate Loans shall bear interest at the Base Rate plus an additional margin ranging from 4.75% to 5.25%; and (ii) SOFR Loans shall bear interest at the Term SOFR rate plus an additional margin ranging from 5.75% to 6.25%, each depending on the average quarterly revolving loan usage during the applicable determination period. The Credit Facility, as amended, provides that the interest rate margins on the Term Loans are 12.00% per annum for Base Rate Loans and 13.00% per annum for SOFR Loans until the first business day of the month following January 31, 2025, when the Company has delivered financial statements demonstrating compliance with the financial covenants under the Credit Facility. If demonstrated, the interest rate margins revert to the margins provided under the Credit Facility prior to the amendment with respect to Term Loans, specifically, (i) Base Rate Loans shall bear interest at the Base Rate plus an additional margin ranging from 7.50% to 9.00%; and (ii) SOFR Loans shall bear interest at the Term SOFR rate plus an additional margin ranging from 8.50% to 10.00%, each depending on our Net Leverage Ratio during the applicable determination period. The Credit Facility provides for an unused line fee of 0.50% per annum on the average unused Revolving Loan commitment, with no fee payable on the $27,500,000 commitment subject to the consent right of the revolving lender and Agent. The Term Loan is subject to 2.50% amortization per annum. The first Term Loan repayment of $675,000 was paid on July 31, 2024. Under the amended Credit Facility, the next Term Loan repayment in the amount of $4,050,000 is due July 31, 2025 with quarterly Term Loan repayments of $1,012,500 payable on the last business day of each fiscal quarter thereafter, with the remaining Term Loan balance due on the Senior Credit Facility Maturity Date. The Credit Facility contains: (a) customary representations, warranties and affirmative covenants; (b) customary conditions to drawing the Revolver; (c) customary negative covenants, subject to negotiated exceptions, including but not limited to: (i) liens, (ii) investments, (iii) indebtedness, (iv) significant corporate changes, including mergers and acquisitions, (v) dispositions, including the disposition of assets by any Loan Party to any Subsidiary that is not a Subsidiary Loan Party, (vi) restricted payments, including stockholder dividends, (vii) distributions, including the repayment of subordinated intercompany and third party indebtedness, and (viii) certain other restrictive agreements; (d) certain financial covenants (see below); (e) customary optional and mandatory prepayment events; and (f) customary events of default (subject to grace periods, as appropriate), such as payment defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency, the occurrence of a defined change in control and the failure to observe the negative covenants and other covenants related to the operation of our business. In addition, under certain circumstances, we may be required to enter into amendments to the Credit Facility in connection with any further syndication of the Credit Facility. Under the Credit Facility, we are required to comply with certain financial covenants, including: a maximum Net Leverage Ratio of 3.25x, commencing with the fiscal quarter ending January 31, 2025; a minimum Fixed Charge Coverage Ratio of 1.20x, commencing with the four fiscal quarter period ending January 31, 2025; a minimum Average Liquidity requirement at each fiscal quarter end of $20,000,000; and a minimum EBITDA of $35,000,000 for the four fiscal quarter period ending October 31, 2025. Over the next twelve months beyond the issuance date, commencing with our fiscal quarter ending January 31, 2025, we believe that we will not be able to comply with one or more of these covenants. As a result, all amounts outstanding under our Credit Facility have been presented as "Current portion of credit facility, net" on our Condensed Consolidated Balance Sheets as of October 31, 2024. Capitalized terms used but not defined herein have the meanings set forth for such terms in the Credit Facility, which have been or will be documented and filed with the SEC. Subordinated Credit Facility On October 17, 2024 (the "closing date"), we entered into a subordinated credit agreement with the existing holders of our convertible preferred stock and U.S. Bank Trust Company, National Association, as agent (the “Subordinated Credit Agreement”) which provided a subordinated unsecured term loan facility in the aggregate principal amount of $25,000,000 (the “Subordinated Credit Facility”). The proceeds of the Subordinated Credit Facility: (i) cured our default on certain financial covenants under the Credit Facility with respect to the fourth quarter of fiscal 2024; (ii) provided us with additional liquidity; and (iii) funded our general working capital needs. The obligations under the Subordinated Credit Facility mature 90 days after the Senior Credit Facility Maturity Date, as discussed in Note (10) – Credit Facility. The Subordinated Credit Facility is subject to a Make-Whole Amount with respect to certain repayments or prepayments. The Make-Whole Amount is an amount equal to: (i) from the closing date through (but not including) the date that is nine months thereafter, the principal repayment amount multiplied by 33.0%; (ii) from the date that is nine months after the closing date through (but not including) the date that is the second anniversary of the closing date, the principal repayment amount multiplied by 50.0%; (iii) from the second anniversary of the closing date and thereafter, the principal repayment amount multiplied by 75.0% plus, in the case of clause (iii), interest accrued on the principal amount outstanding at the Make-Whole Interest Rate (as defined below) starting on the second anniversary of the closing date and calculated as of any such date of determination. The Make-Whole Interest Rate is a rate equal to 16.0% per annum, which is increased by 2.0% per annum upon the occurrence and during the continuation of an event of default under the Subordinated Credit Facility. We identified an embedded derivative related to redemption features that requires bifurcation from the Subordinated Credit Facility under ASC 815 . We established an initial embedded derivative liability of $3,318,000, which was allocated as a discount against the Subordinated Credit Facility proceeds. The embedded derivative liability is presented with the "Current portion of subordinated credit facility, net" on the Condensed Consolidated Balance Sheets and is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs. Changes in the estimated fair value of the embedded derivative liability are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024, the embedded derivative liability was remeasured to $3,566,000, resulting in non-cash expense of $248,000 for the three months ended October 31, 2024, recorded in " Other expenses (income) - Change in fair value of warrants and derivatives " on the Condensed Consolidated Statements of Operations . In connection with entering the Subordinated Credit Facility, we paid financing fees of $1,761,000, which were accounted for as deferred financing costs. Deferred financing costs, discounts and the Make-Whole Amount are amortized as interest expense through the Subordinated Credit Facility maturity date, and are presented as adjustments to the borrowings outstanding under such debt. Interest expense related to our Subordinated Credit Facility for the three months ended October 31, 2024 was $248,000. The following table presents a reconciliation of the amount understanding under the Subordinated Credit Facility to its net carrying value: October 31, 2024 Subordinated Credit Facility $ 25,000,000 Less: Unamortized deferred financing costs 1,740,000 Less: Unamortized discount 3,284,000 Accretion of Make-Whole Amount 193,000 Subordinated Credit Facility, net - subtotal 20,169,000 Plus: Embedded derivative related to redemption features 3,566,000 Amount outstanding under the Subordinated Credit Facility 23,735,000 Less: Current portion of Subordinated Credit Facility, net (23,735,000) Non-current portion of Subordinated Credit Facility, net $ — The obligations under the Subordinated Credit Facility are guaranteed by the same guarantors under the Credit Facility . The Subordinated Credit Facility contains customary representations, warranties and affirmative covenants, in each case substantially consistent with the representations and warranties and affirmative covenants under the amended Credit Agreement. The Subordinated Credit Facility contains customary negative covenants, subject to negotiated exceptions, including but not limited to: (i) liens, (ii) investments, (iii) indebtedness, (iv) significant corporate changes, including mergers and acquisitions, (v) dispositions, (vi) restricted payments, including stockholder dividends, (vii) customary optional and mandatory prepayment events and (viii) certain other restrictive agreements. The outstanding Subordinated Credit Facility will not be considered debt for purposes of our financial covenant testing under the Credit Facility. However, the Subordinated Credit Facility includes a cross-default provision, whereby a default under the Credit Facility constitutes a default under the Subordinated Credit Facility. Accordingly, consistent with the presentation of our Credit Facility as a current liability, the amount of debt outstanding under the Subordinated Credit Facility has also been presented as a current liability on our Condensed Consolidated Balance Sheet as of October 31, 2024. Capitalized terms used but not defined herein have the meanings set forth for such terms in the Subordinated Credit Facility, which has been documented and filed with the SEC.

Leases

Leases	3 Months Ended
	Oct. 31, 2024
Leases [Abstract]
Leases	Leases Our leases historically relate to the leasing of facilities and equipment. In accordance with FASB ASC 842 - " Leases " ("ASC 842"), we determine at inception whether an arrangement is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. At lease commencement, we recognize a right-of-use ("ROU") asset and lease liability based on the present value of the future lease payments over the estimated lease term. We have elected to not recognize a ROU asset or lease liability for any leases with terms of twelve months or less. Instead, for such short-term leases, we recognize lease expense on a straight-line basis over the lease term. Certain of our leases include options to extend the term of the lease or to terminate the lease early. When it is reasonably certain that we will exercise a renewal option or will not exercise a termination option, we include the impact of exercising or not exercising such option, respectively, in the estimate of the lease term. As our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate ("IBR") on the commencement date to calculate the present value of future lease payments. Such IBR represents our estimated rate of interest to borrow on a collateralized basis over a term commensurate with the expected lease term. Some of our leases include payments that are based on the Consumer Price Index ("CPI") or other similar indices. These variable lease payments are included in the calculation of the ROU asset and lease liability using the index as of the lease commencement date. Other variable lease payments, such as common area maintenance, property taxes, and usage-based amounts, are required by ASC 842 to be excluded from the ROU asset and lease liability and expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset would also consider, to the extent applicable, any deferred rent upon adoption, lease pre-payments or initial direct costs of obtaining the lease (e.g., such as commissions). For all classes of leased assets, we elected the practical expedient to not separate lease components (i.e., the actual item being leased, such as the facility or piece of equipment) from non-lease components (i.e., the distinct elements of a contract not related to securing the use of the leased asset, such as common area maintenance and consumable supplies). Certain of our facility lease agreements (which are classified as operating leases) contain rent holidays or rent escalation clauses. For rent holidays and rent escalation clauses during the lease term, we record rental expense on a straight-line basis over the term of the lease. As of October 31, 2024, none of our leases contained a residual value guarantee and covenants included in our lease agreements are customary for the types of facilities and equipment being leased. The components of lease expense are as follows: Three months ended October 31, 2024 2023 Operating lease expense 1,914,000 2,258,000 Short-term lease expense 32,000 108,000 Variable lease expense 1,177,000 1,029,000 Sublease income (17,000) (17,000) Total lease expense $ 3,106,000 3,378,000 Additional information related to leases is as follows: Three months ended October 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating leases - Operating cash outflows $ 2,130,000 $ 2,319,000 ROU assets obtained in the exchange for lease liabilities (non-cash): Operating leases $ — $ 20,000 The following table is a reconciliation of future cash flows relating to operating lease liabilities presented on our Condensed Consolidated Balance Sheet as of October 31, 2024: Remainder of fiscal 2025 $ 6,149,000 Fiscal 2026 6,868,000 Fiscal 2027 4,766,000 Fiscal 2028 4,028,000 Fiscal 2029 3,376,000 Thereafter 16,435,000 Total future undiscounted cash flows 41,622,000 Less: Present value discount 5,251,000 Lease liabilities $ 36,371,000 Weighted-average remaining lease terms (in years) 7.76 Weighted-average discount rate 3.45% As of October 31, 2024, we do not have any material rental commitments that have not already commenced. As of October 31, 2024, our Satellite and Space Communications segment leased two facilities in Hampshire (Basingstoke), United Kingdom, where we previously manufactured high precision full motion fixed and mobile X/Y satellite tracking antennas. In connection with the CGC Divestiture discussed in Note (2) – Business Divestitures, we are addressing with each landlord our exit and termination of such facility leases. As these efforts are ongoing, further adjustments to the right of use assets and/or lease liabilities for such facilities may be required in the future.
Leases	Leases Our leases historically relate to the leasing of facilities and equipment. In accordance with FASB ASC 842 - " Leases " ("ASC 842"), we determine at inception whether an arrangement is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. At lease commencement, we recognize a right-of-use ("ROU") asset and lease liability based on the present value of the future lease payments over the estimated lease term. We have elected to not recognize a ROU asset or lease liability for any leases with terms of twelve months or less. Instead, for such short-term leases, we recognize lease expense on a straight-line basis over the lease term. Certain of our leases include options to extend the term of the lease or to terminate the lease early. When it is reasonably certain that we will exercise a renewal option or will not exercise a termination option, we include the impact of exercising or not exercising such option, respectively, in the estimate of the lease term. As our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate ("IBR") on the commencement date to calculate the present value of future lease payments. Such IBR represents our estimated rate of interest to borrow on a collateralized basis over a term commensurate with the expected lease term. Some of our leases include payments that are based on the Consumer Price Index ("CPI") or other similar indices. These variable lease payments are included in the calculation of the ROU asset and lease liability using the index as of the lease commencement date. Other variable lease payments, such as common area maintenance, property taxes, and usage-based amounts, are required by ASC 842 to be excluded from the ROU asset and lease liability and expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset would also consider, to the extent applicable, any deferred rent upon adoption, lease pre-payments or initial direct costs of obtaining the lease (e.g., such as commissions). For all classes of leased assets, we elected the practical expedient to not separate lease components (i.e., the actual item being leased, such as the facility or piece of equipment) from non-lease components (i.e., the distinct elements of a contract not related to securing the use of the leased asset, such as common area maintenance and consumable supplies). Certain of our facility lease agreements (which are classified as operating leases) contain rent holidays or rent escalation clauses. For rent holidays and rent escalation clauses during the lease term, we record rental expense on a straight-line basis over the term of the lease. As of October 31, 2024, none of our leases contained a residual value guarantee and covenants included in our lease agreements are customary for the types of facilities and equipment being leased. The components of lease expense are as follows: Three months ended October 31, 2024 2023 Operating lease expense 1,914,000 2,258,000 Short-term lease expense 32,000 108,000 Variable lease expense 1,177,000 1,029,000 Sublease income (17,000) (17,000) Total lease expense $ 3,106,000 3,378,000 Additional information related to leases is as follows: Three months ended October 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating leases - Operating cash outflows $ 2,130,000 $ 2,319,000 ROU assets obtained in the exchange for lease liabilities (non-cash): Operating leases $ — $ 20,000 The following table is a reconciliation of future cash flows relating to operating lease liabilities presented on our Condensed Consolidated Balance Sheet as of October 31, 2024: Remainder of fiscal 2025 $ 6,149,000 Fiscal 2026 6,868,000 Fiscal 2027 4,766,000 Fiscal 2028 4,028,000 Fiscal 2029 3,376,000 Thereafter 16,435,000 Total future undiscounted cash flows 41,622,000 Less: Present value discount 5,251,000 Lease liabilities $ 36,371,000 Weighted-average remaining lease terms (in years) 7.76 Weighted-average discount rate 3.45% As of October 31, 2024, we do not have any material rental commitments that have not already commenced. As of October 31, 2024, our Satellite and Space Communications segment leased two facilities in Hampshire (Basingstoke), United Kingdom, where we previously manufactured high precision full motion fixed and mobile X/Y satellite tracking antennas. In connection with the CGC Divestiture discussed in Note (2) – Business Divestitures, we are addressing with each landlord our exit and termination of such facility leases. As these efforts are ongoing, further adjustments to the right of use assets and/or lease liabilities for such facilities may be required in the future.

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the three months ended October 31, 2024 was (1.5)%, which includes a net discrete tax benefit of $108,000 primarily related to proxy solicitation and CEO transition costs. Our effective tax rate for the three months ended October 31, 2023 was 48.3%, which includes a net discrete tax expense of $2,049,000 primarily related to our decision to sell our Power Systems Technology product line (the "PST Divestiture") in a taxable transaction and settlement of stock-based awards. Excluding discrete items, our effective tax rate for the three months ended October 31, 2024 and 2023 was (3.8)% and 122.0%, respectively. For purposes of determining our estimated annual effective tax rate for fiscal 2025, the impairment of long-lived assets, including goodwill, the change in fair value of warrants and derivatives, proxy solicitation costs and CEO transition costs are considered significant, unusual or infrequently occurring discrete tax items and are excluded from the computation of our effective tax rate.The change in rate from 122.0% to (3.8)% is primarily due to changes in expected product and geographic mix and not providing for tax benefits on U.S. deferred tax assets. At October 31, 2024 and July 31, 2024, total unrecognized tax benefits were $8,681,000 and $8,605,000, respectively, including interest of $264,000 and $224,000, respectively. Unrecognized tax benefits result from income tax positions taken or expected to be taken on our income tax returns for which a tax benefit has not been recorded in our condensed consolidated financial statements. We believe it is reasonably possible that the gross unrecognized tax benefits could decrease by as much as $512,000 in the next twelve months due to the expiration of a statute of limitations related to federal, state and foreign tax positions. Our U.S. federal income tax returns for fiscal 2021 through 2023 are subject to potential future Internal Revenue Service ("IRS") audit. None of our state income tax returns prior to fiscal 2020 are subject to audit. Future tax assessments or settlements could have a material adverse effect on our consolidated results of operations and financial condition.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Oct. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Overview In December 2023, our stockholders approved the Comtech Telecommunications Corp. 2023 Equity and Incentive Plan (the “2023 Plan”), which replaced the Amended and Restated 2000 Stock Incentive Plan. Under the 2023 Plan, the number of shares of common stock available for all awards, other than substitute awards granted in connection with a corporate transaction, is 1,669,683 shares of common stock plus certain expired or cancelled awards recycled back into the 2023 Plan. Also, on November 25, 2024, our Board of Directors approved an amendment to the 2023 Plan to increase the number of available shares of common stock authorized for issuance under the 2023 Plan by 2,195,000 shares. Stockholders will be asked to approve the amendment to the 2023 Plan at the 2024 Annual Meeting on January 13, 2025. We issue stock-based awards to certain of our employees and our Board of Directors pursuant to the 2023 Plan, as amended and/or restated from time to time and our 2001 Employee Stock Purchase Plan, as amended and/or restated from time to time (the "ESPP"), and recognize related stock-based compensation in our condensed consolidated financial statements. The 2023 Plan provides for the granting to employees and consultants of Comtech (including prospective employees and consultants): (i) incentive and non-qualified stock options, (ii) restricted stock units ("RSUs"), (iii) RSUs with performance measures (which we refer to as "performance shares"), (iv) restricted stock, (v) stock units (reserved for issuance to non-employee directors) and share units (reserved for issuance to employees) (collectively, "share units") and (vi) stock appreciation rights ("SARs"), among other types of awards. Our non-employee directors are eligible to receive non-discretionary grants of stock-based awards, subject to certain limitations. As of October 31, 2024, the aggregate number of shares of common stock which may be issued may not exceed 13,562,500. Stock options granted may not have a term exceeding ten years or, in the case of an incentive stock award granted to a stockholder who owns stock representing more than 10.0% of the voting power, no more than five years. We expect to settle all outstanding awards under the Plan and employee purchases under the ESPP with the issuance of new shares of our common stock. As of October 31, 2024, we had granted stock-based awards representing the right to purchase and/or acquire an aggregate of 12,494,430 shares (net of 6,808,256 expired and canceled awards), of which an aggregate of 9,731,277 have been exercised or settled. As of October 31, 2024, the following stock-based awards, by award type, were outstanding: October 31, 2024 Stock options 141,190 Performance shares 876,199 RSUs, restricted stock, share units and other stock-based awards 1,745,764 Total 2,763,153 Our ESPP provides for the issuance of up to 1,300,000 shares of our common stock. Our ESPP is intended to provide our eligible employees the opportunity to acquire our common stock at 85% of fair market value on the first or last day of each calendar quarter, whichever is lower. Through October 31, 2024, we have cumulatively issued 1,065,585 shares of our common stock to participating employees in connection with our ESPP. Stock-based compensation for awards issued is reflected in the following line items in our Condensed Consolidated Statements of Operations : Three months ended October 31, 2024 2023 Cost of sales $ 104,000 282,000 Selling, general and administrative expenses (14,000) 2,176,000 Research and development expenses 65,000 187,000 Stock-based compensation expense before income tax benefit 155,000 2,645,000 Estimated income tax benefit (20,000) (584,000) Net stock-based compensation expense $ 135,000 2,061,000 Stock-based compensation for equity-classified awards is measured at the date of grant, based on an estimate of the fair value of the award and is generally expensed over the vesting period of the award. At October 31, 2024, unrecognized stock-based compensation of $9,923,000, net of estimated forfeitures of $708,000, is expected to be recognized over a weighted average period of 2.1 years. Total stock-based compensation capitalized and included in ending inventory at both October 31, 2024 and July 31, 2024 was $198,000. There are no liability-classified stock-based awards outstanding as of October 31, 2024 or July 31, 2024. Stock-based compensation expense, by award type, is summarized as follows: Three months ended October 31, 2024 2023 Stock options $ 17,000 19,000 Performance shares (397,000) 357,000 RSUs, restricted stock and share units 521,000 2,244,000 ESPP 14,000 25,000 Stock-based compensation expense before income tax benefit 155,000 2,645,000 Estimated income tax benefit (20,000) (584,000) Net stock-based compensation expense $ 135,000 2,061,000 During the three months ended October 31, 2024, we reversed a portion of our stock-based compensation expense related to performance shares due to lower-than-estimated achievement of fiscal 2022 performance share goals. Stock-based compensation expense for the more recent period also reflects the forfeiture of awards related to our former Chief Operating Officer, whose employment was terminated during our first quarter of fiscal 2025. With respect to stock-based compensation expense reported in the prior year period, we had determined to settle fiscal 2024 non-equity annual incentive awards accrued during such period with stock-based awards in lieu of cash. Also, contributing to the higher stock-based compensation expense in the prior year period was our annual grant of stock-based awards to non-executive employees. Due to the number of shares available for grant under the 2023 Plan, such grants of stock-based awards did not occur in our first quarter of fiscal 2025. ESPP stock-based compensation expense includes the 15% discount offered to participants in the ESPP. The estimated income tax benefit as shown in the above table was computed using income tax rates expected to apply when the awards are settled. Such deferred tax asset was recorded net as part of our non-current deferred tax liability on our Condensed Consolidated Balance Sheets as of October 31, 2024 and July 31, 2024. The actual income tax benefit recognized for tax reporting is based on the fair market value of our common stock at the time of settlement and can significantly differ from the estimated income tax benefit recorded for financial reporting. Stock Options The following table summarizes the Plan's activity: Awards Weighted Average Weighted Average Aggregate Outstanding at July 31, 2024 141,190 $ 20.61 Outstanding at October 31, 2024 141,190 $ 20.61 4.26 $ — Exercisable at October 31, 2024 129,840 $ 20.84 4.14 $ — Vested and expected to vest at October 31, 2024 140,315 $ 20.62 4.25 $ — Stock options outstanding as of October 31, 2024 have exercise prices ranging from $17.88 - $28.35, representing the fair market value of our common stock on the date of grant, a contractual term of ten years and a vesting period of five years. Performance Shares, RSUs, Restricted Stock, Share Units and Other Stock-based Awards The following table summarizes the Plan's activity relating to performance shares, RSUs, restricted stock, share units and other stock-based awards: Awards Weighted Average Aggregate Intrinsic Value Outstanding at July 31, 2024 1,800,288 $ 10.61 Granted 1,154,859 5.04 Settled (204,292) 11.26 Canceled/Forfeited (128,892) 10.61 Outstanding at October 31, 2024 2,621,963 $ 8.11 $ 9,754,000 Vested at October 31, 2024 628,254 $ 12.63 $ 2,337,000 Vested and expected to vest at October 31, 2024 2,509,221 $ 8.02 $ 9,334,000 During the three months ended October 31, 2024, our Board of Directors authorized the issuance of stock-based awards with a total unrecognized compensation expense, net of estimated forfeitures, of approximately $6,700,000. Through the issuance date, approximately $2,000,000 of such authorization remains subject to grant pending approval by our stockholders of an amendment to our 2023 Plan to increase the number of available shares of common stock authorized for issuance by 2,195,000 shares. The total intrinsic value relating to fully-vested awards settled during the three months ended October 31, 2024 and 2023 was $636,000 and $2,656,000, respectively. The performance shares granted to employees principally vest over a three-year performance period, if pre-established performance goals are attained, or as specified pursuant to the Plan and related agreements. As of October 31, 2024, the number of outstanding performance shares included in the above table, and the related compensation expense generally assume achievement of the pre-established goals at a target level, except for two of our former CEOs whose achievement was based on maximum performance pursuant to their then pre-existing change-in-control agreements. RSUs and restricted stock granted to non-employee directors prior to August 2022 had a vesting period of five years and are convertible into shares of our common stock generally at the time of termination, on a one-for-one basis for no cash consideration, or earlier under certain circumstances. Commencing in August 2022, such awards have a vesting period of one year. RSUs granted to employees prior to August 2022 have a vesting period of five years and are convertible into shares of our common stock generally at the time of vesting, on a one-for-one basis for no cash consideration. Commencing in August 2022, such RSUs have a vesting period of three years. Share units granted prior to July 31, 2017 were vested when issued and are convertible into shares of our common stock, generally at the time of termination, on a one-for-one basis for no cash consideration, or earlier under certain circumstances. Share units granted on or after July 31, 2017 were granted to certain employees in lieu of non-equity incentive compensation and are convertible into shares of our common stock on the one-year anniversary of the respective grant date. In July 2024 and 2023, we granted shares of our common stock to certain employees in lieu of non-equity incentive compensation. The fair value of performance shares, RSUs, restricted stock, share units and other stock-based awards is determined using the closing market price of our common stock on the date of grant, less the present value of any estimated future dividend equivalents such awards are not entitled to receive and an applicable estimated discount for any post-vesting transfer restrictions. RSUs, performance shares and restricted stock are entitled to dividend equivalents, as applicable, unless forfeited before vesting occurs. Share units and other stock-based awards would be entitled to dividend equivalents while the underlying shares are unissued. Dividend equivalents are subject to forfeiture, similar to the terms of the underlying stock-based awards, and are payable in cash generally at the time of settlement of the underlying award. During the three months ended October 31, 2024 and 2023, we reversed $27,000 and $23,000, respectively, of previously accrued dividend equivalents due to forfeitures and paid out $39,000 and $114,000, respectively. Accrued dividend equivalents were recorded as a reduction to retained earnings. As of October 31, 2024 and July 31, 2024, accrued dividend equivalents were $250,000 and $316,000, respectively.

Segment Information

Segment Information	3 Months Ended
	Oct. 31, 2024
Segment Reporting [Abstract]
Segment Information	Segment Information Reportable operating segments are determined based on Comtech’s management approach. The management approach, as defined by FASB ASC 280 "Segment Reporting" is based on the way that the CODM organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. As of the issuance date, our CODM, for purposes of FASB ASC 280, is our Chairman, President and Chief Executive Officer, Kenneth H. Traub. Satellite and Space Communications is organized into four technology areas: satellite modem and amplifier technologies, troposcatter technologies, government services and space components. This segment offers customers: satellite ground infrastructure technologies, services and system integration that facilitate the transmission of voice, video and data over GEO, MEO and LEO satellite constellations, including traveling wave tube power amplifiers, modems, VSAT platforms and frequency converters; over-the-horizon microwave solutions that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction; professional engineering, training and field support services, including cybersecurity, for multiple U.S. government agencies; and procurement and supply chain management of high reliability Electrical, Electronic and Electromechanical ("EEE") parts for satellite, launch vehicle and manned space applications. Terrestrial and Wireless Networks is organized into three service areas: next generation 911 and call delivery, Solacom call handling solutions, and trusted location and messaging solutions. This segment offers customers: Wireless/VolP 911 location and routing services to connect emergency calls to Public Safety Answering Points ("PSAPs"); SMS text to 911 services, providing alternate paths for individuals who need to request assistance (via text messaging) a method to reach PSAPs; next generation 911 solutions, providing emergency call routing, location validation, policy-based routing rules, logging and security functionality; Emergency Services IP Network transport infrastructure for emergency services communications and support of next generation 911 services; call handling applications for PSAPs; wireless emergency alerts solutions for network operators; and software and equipment for location-based and text messaging services for various applications, including for public safety, commercial and government services. Our CODM primarily uses a metric that we refer to as Adjusted EBITDA to measure an operating segment’s performance and to make decisions about resources to be allocated. Our Adjusted EBITDA metric for the Satellite and Space Communications and Terrestrial and Wireless Networks segments do not consider allocation of any indirect expenses that are unrelated to the segment's operations, or any of the following: interest, income taxes, depreciation, amortization of intangibles, impairment of long-lived assets, including goodwill, amortization of cost to fulfill assets, amortization of stock-based compensation, CEO transition costs, change in fair value of warrants and derivatives, proxy solicitation costs, restructuring costs, strategic emerging technology costs (for next-generation satellite technology) and write-off of deferred financing costs, and in the recent past, acquisition plan expenses, change in fair value of the convertible preferred stock purchase option liability, COVID-19 related costs, facility exit costs, strategic alternatives expenses and other and loss on business divestiture. These items, while periodically affecting our results, may vary significantly from period to period and may have a disproportionate effect in a given period, thereby affecting the comparability of results. Any amounts shown in the Adjusted EBITDA calculation for our Satellite and Space Communications and Terrestrial and Wireless Networks segments are directly attributable to those segments. Our Adjusted EBITDA is also used by our management in assessing the Company's operating results. Although closely aligned, the Company's definition of Adjusted EBITDA is different than EBITDA (as such term is defined in our Credit Facility) utilized for financial covenant calculations and also may differ from the definition of EBITDA or Adjusted EBITDA used by other companies and, therefore, may not be comparable to similarly titled measures used by other companies. Operating segment information, along with a reconciliation of segment net income (loss) and consolidated net loss to Adjusted EBITDA is presented in the tables below: Three months ended October 31, 2024 Satellite and Space Communications Terrestrial and Wireless Networks Unallocated Total Net sales $ 58,933,000 56,867,000 — $ 115,800,000 Operating income (loss) $ (118,807,000) 5,315,000 (15,678,000) $ (129,170,000) Net income (loss) $ (119,391,000) 5,342,000 (34,358,000) $ (148,407,000) (Benefit from ) provision for income taxes (55,000) (9,000) 2,198,000 2,134,000 Interest expense 11,000 — 9,521,000 9,532,000 Interest (income) and other 628,000 (18,000) 25,000 635,000 Write-off of deferred financing costs — — 1,412,000 1,412,000 Change in fair value of warrants and derivatives — — 5,524,000 5,524,000 Amortization of stock-based compensation — — 155,000 155,000 Amortization of intangibles 2,976,000 3,617,000 — 6,593,000 Depreciation 847,000 1,962,000 86,000 2,895,000 Impairment of long-lived assets, including goodwill 79,555,000 — — 79,555,000 Amortization of cost to fulfill assets 261,000 — — 261,000 Proxy solicitation costs — — 1,583,000 1,583,000 CEO transition costs — — 598,000 598,000 Restructuring costs 13,740,000 90,000 4,023,000 17,853,000 Strategic emerging technology costs 280,000 — — 280,000 Adjusted EBITDA $ (21,148,000) $ 10,984,000 $ (9,233,000) $ (19,397,000) Purchases of property, plant and equipment $ 50,000 2,108,000 257,000 $ 2,415,000 Total assets at October 31, 2024 $ 300,262,000 458,443,000 34,498,000 $ 793,203,000 Three months ended October 31, 2023 Satellite and Space Communications Terrestrial and Wireless Networks Unallocated Total Net sales $ 102,388,000 49,523,000 — $ 151,911,000 Operating income (loss) $ 10,105,000 4,040,000 (12,059,000) $ 2,086,000 Net income (loss) $ 9,303,000 4,145,000 (14,885,000) $ (1,437,000) Provision for (benefit from) income taxes 227,000 (300,000) (1,271,000) (1,344,000) Interest expense 872,000 — 4,060,000 4,932,000 Interest (income) and other (297,000) 195,000 37,000 (65,000) Amortization of stock-based compensation — — 2,645,000 2,645,000 Amortization of intangibles 1,672,000 3,617,000 — 5,289,000 Depreciation 954,000 1,973,000 95,000 3,022,000 Amortization of cost to fulfill assets 240,000 — — 240,000 Restructuring costs 790,000 7,000 2,919,000 3,716,000 Strategic emerging technology costs 1,370,000 — — 1,370,000 Adjusted EBITDA $ 15,131,000 9,637,000 (6,400,000) $ 18,368,000 Purchases of property, plant and equipment $ 903,000 1,736,000 577,000 $ 3,216,000 Total assets at October 31, 2023 $ 527,343,000 460,088,000 25,112,000 $ 1,012,543,000 Unallocated expenses result from corporate expenses such as executive compensation, accounting, legal and other regulatory compliance related costs and also includes all of our amortization of stock-based compensation. See Note (1) - General for information related to CEO transition and proxy solicitation related costs. During the three months ended October 31, 2024, our Unallocated segment also incurred $4,023,000 of restructuring costs focused on: (i) legal and advisory fees associated with our previously announced transformation strategy to explore strategic alternatives and operational initiatives to align our cost structure with our future anticipated business, and (ii) legal and advisory fees related to our Credit Facility and to improve liquidity. During the three months ended October 31, 2023, our Unallocated segment incurred $2,919,000 of restructuring costs focused on streamlining our operations and legal and other related expenses for the PST Divestiture. During the three months ended October 31, 2024, our Satellite and Space Communications segment recorded a $79,555,000 non-cash goodwill impairment charge (see Note (16) - Long-lived Assets, including Goodwill for additional information). During the three months ended October 31, 2024, our Satellite and Space Communications segment also recorded $13,740,000 of restructuring costs, which included: (i) $11,369,000 of non-cash inventory write downs included in Cost of Sales in our Condensed Consolidated Statements of Operations (see Note (8) - Inventories for additional information); and (ii) $2,371,000 of costs included in Selling, General and Administrative expenses in our Condensed Consolidated Statements of Operations related to our transformation strategy (principally, the CGC Divestiture). During the three months ended October 31, 2023, our Satellite and Space Communications segment recorded $790,000 of restructuring costs to streamline our operations and improve efficiency, including costs related to the relocation of certain of our satellite ground infrastructure production facilities to our 146,000 square foot facility in Chandler, Arizona. In addition, during the three months ended October 31, 2024, we incurred $280,000 of strategic emerging technology costs for next-generation satellite technology. Similar strategic emerging technology costs of $1,370,000 were incurred during the three months ended October 31, 2023. During the three months ended October 31, 2024 and 2023, our Terrestrial and Wireless Networks segment recorded $90,000 and $7,000, respectively, of restructuring costs primarily incurred to streamline our operations and improve efficiency. Interest expense in the tables above primarily relates to our credit facilities, and includes the amortization of deferred financing costs. See Note (10) - Credit Facility and Note (11) - Subordinated Credit Facility for further discussion. Intersegment sales for the three months ended October 31, 2024 and 2023 between the Satellite and Space Communications segment and the Terrestrial and Wireless Networks segment were nominal. All intersegment sales are eliminated in consolidation and are excluded from the tables above. Unallocated assets at October 31, 2024 consist principally of cash and cash equivalents, corporate property, plant and equipment, operating lease right of use assets and deferred financing costs. The large majority of our long-lived assets are located in the U.S.

Goodwill

Goodwill	3 Months Ended
	Oct. 31, 2024
Goodwill [Abstract]
Goodwill	Long-lived Assets, including Goodwill The following table represents goodwill by reportable operating segment as of October 31, 2024 and July 31, 2024. Satellite and Space Communications Terrestrial and Wireless Networks Total Balance as of July 31, 2024 $ 110,090,000 174,090,000 $ 284,180,000 Goodwill impairment (79,555,000) — (79,555,000) Balance as of October 31, 2024 $ 30,535,000 174,090,000 $ 204,625,000 At October 31, 2024 and July 31, 2024, accumulated goodwill impairment losses related to our Satellite and Space Communications segment totaled $128,480,000 and $48,925,000, respectively. There are no accumulated impairments for our Terrestrial and Wireless Network segment. In accordance with FASB ASC 350, we perform a goodwill impairment analysis at least annually (on the first day of the first quarter of each fiscal year, or August 1st), unless indicators of impairment exist in interim periods. If we fail the quantitative assessment of goodwill impairment ("quantitative assessment"), we would be required to recognize an impairment loss equal to the amount that a reporting unit's carrying value exceeded its fair value; however, any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. During the fourth quarter of fiscal year 2024, our lower-than-expected financial performance in our Satellite and Space Communications segment, default on certain credit facility covenants and the sustained decrease in stock price since August 1, 2023 were considered triggering events which required a quantitative impairment test as of July 31, 2024. We performed a quantitative assessment using market participant assumptions to determine if the fair value of each of our reporting units with goodwill exceeded its carrying value. In making this assessment, we considered, among other things: expectations of projected net sales and cash flows, assumptions impacting the weighted average cost of capital, trends in trading multiples of comparable companies, changes in our stock price and changes in the carrying values of our reporting units with goodwill. We also considered overall business conditions. Ultimately, based on our quantitative evaluations, we determined that the carrying value of our Satellite and Space Communications reporting unit exceeded its fair value and recognized a goodwill impairment loss of $48,925,000 in fiscal 2024. We also determined that our Terrestrial and Wireless Networks reporting unit had an estimated fair value in excess of its carrying value of at least 24.7% and concluded that our goodwill for this reporting unit was not impaired. Given our Satellite and Space Communications segment's financial performance in the first quarter of fiscal 2025, and considering triggering events within this segment through the issuance date, we determined that we were required to perform another quantitative impairment test on an interim basis as of October 31, 2024. Following the same approach as outlined above, ultimately, based on our quantitative evaluations, we determined that the carrying value of our Satellite and Space Communications reporting unit exceeded its fair value and recognized a goodwill impairment loss of $79,555,000 during the three months ended October 31, 2024. In performing the quantitative assessments, we estimated the fair value of each of our reporting units using a combination of the income and market approaches. The income approach, also known as the discounted cash flow ("DCF") method, utilizes the present value of cash flows to estimate fair value. The future cash flows for our reporting units were projected based on our estimates, at that time, of future revenues, operating income and other factors (such as working capital and capital expenditures). For purposes of conducting our impairment analysis, we assumed revenue growth rates and cash flow projections that are below our actual long-term expectations. The discount rates used in our DCF method were based on a weighted-average cost of capital ("WACC") determined from relevant market comparisons, adjusted upward for specific reporting unit risks (primarily the uncertainty of achieving projected operating cash flows). A terminal value growth rate was applied to the final year of the projected period, which reflects our estimate of stable, perpetual growth. We then calculated a present value of the respective cash flows for each reporting unit to arrive at an estimate of fair value under the income approach. Under the market approach, we estimated a fair value based on comparable companies' market multiples of revenues and earnings before interest, taxes, depreciation and amortization and factored in a control premium. Finally, we compared our estimates of fair values to our total public market capitalization and assessed implied control premiums based on our common stock price of $3.72 and $3.17 as of the dates of testing (October 31, 2024 and July 31, 2024, respectively). In tandem with our quantitative impairment test as of July 31, 2024 and decision in July 2024 to exit our operations in Basingstoke, United Kingdom (which became a separate asset group, the “U.K. Asset Group”), we assessed the recoverability of the carrying value of the U.K. Asset Group under the accounting standards for assets held and used as of July 31, 2024 and determined that the undiscounted future cash flows to complete the exit of our Basingstoke operations indicated that the carrying amount of the U.K. Asset Group was not recoverable. As a result, we recorded a $15,600,000 non-cash long-lived asset impairment charge within the Satellite and Space Communications segment in fiscal 2024. We allocated $9,925,000 of this impairment to the carrying value of Intangibles with Finite Lives, net, $2,651,000 to Property, Plant & Equipment, net , $1,873,000 to Other Assets, net and $1,151,000 to Operating Lease Right-of-Use Assets, net . In light of our quantitative interim impairment tests as of October 31, 2024 and July 31, 2024, we assessed the recoverability of the remaining carrying values of long-lived assets within the Satellite and Space Communications segment. The undiscounted future cash flows of the asset group indicated that the carrying amount of the asset group was recoverable. It is possible that, during the remainder of fiscal 2025 or beyond, business conditions (both in the U.S. and internationally) could deteriorate from the current state, our current or prospective customers could materially postpone, reduce or even forgo purchases of our products and services to a greater extent than we currently anticipate, or our common stock price could fluctuate. A sustained significant decline in our actual operating performance, as compared to our forecast, and/or a continued sustained decline in our common stock price, may require us to perform another interim quantitative impairment test during fiscal 2025, which may result in an impairment of our long-lived assets (including goodwill) assigned to one or both of our reporting units. In any event, we are required to perform our next annual goodwill impairment analysis on August 1, 2025 (the start of our fiscal 2026). If our assumptions and related estimates change in the future, or if we change our reporting unit structure or other events and circumstances change, we may be required to record impairment charges when we perform these tests, or in other future periods. Any impairment charges that we may record in the future could be material to our results of operations and financial condition.

Intangible Assets

Intangible Assets	3 Months Ended
	Oct. 31, 2024
Finite-Lived Intangible Assets, Net [Abstract]
Intangible Assets	Intangible Assets Intangible assets with finite lives are as follows: October 31, 2024 Weighted Average Gross Carrying Accumulated Net Carrying Customer relationships 20.2 $ 294,258,000 138,168,000 $ 156,090,000 Technologies 13.6 106,149,000 82,516,000 23,633,000 Trademarks and other 16.9 31,826,000 23,314,000 8,512,000 Total $ 432,233,000 243,998,000 $ 188,235,000 July 31, 2024 Weighted Average Gross Carrying Accumulated Net Carrying Customer relationships 20.2 $ 302,058,000 141,601,000 $ 160,457,000 Technologies 14.8 113,149,000 87,809,000 25,340,000 Trademarks and other 16.7 32,926,000 23,895,000 9,031,000 Total $ 448,133,000 253,305,000 $ 194,828,000 The weighted average amortization period in the above table excludes fully amortized intangible assets. Amortization expense for the three months ended October 31, 2024 and 2023 was $6,593,000 and $5,289,000, respectively. Amortization expense for the three months ended October 31, 2024 includes $1,343,000 of accelerated amortization due to the impact of the CGC Divestiture. During the most recent fiscal quarter, we also wrote-off $15,900,000 of fully amortized intangible assets related to the CGC Divestiture. The estimated amortization expense consists of the following for the fiscal years ending July 31: 2025 $ 21,722,000 2026 19,128,000 2027 17,774,000 2028 17,774,000 2029 16,353,000 We review net intangible assets with finite lives for impairment when an event occurs indicating the potential for impairment. Based on our assessment in the fourth quarter of fiscal 2024, we recognized an impairment loss of $9,925,000 in fiscal 2024 within our Satellite and Space Communications segment. See Note (16) - Long-Lived Assets, Including Goodwill for more information. We believe that the carrying values of our remaining net intangible assets were recoverable as of October 31, 2024. However, if business conditions deteriorate, we may be required to record impairment losses, and/or increase the amortization of intangibles in the future. Any impairment charges that we may record in the future could be material to our results of operations and financial condition.

Convertible Preferred Stock

Convertible Preferred Stock	3 Months Ended
	Oct. 31, 2024
Temporary Equity Disclosure [Abstract]
Convertible Preferred Stock	Convertible Preferred Stock Fiscal 2024 and Prior Activity On October 18, 2021, we entered into a Subscription Agreement (the “Subscription Agreement”) with certain affiliates and related funds of White Hat Capital Partners LP and Magnetar Capital LLC (collectively, the “Investors”). On October 19, 2021, pursuant to the terms of the Subscription Agreement, the Investors purchased an aggregate of 100,000 shares of Series A Convertible Preferred Stock, with a par value of $0.10 per share, for an aggregate purchase price of $100,000,000. White Hat Capital Partners LP is affiliated with Mark Quinlan, who serves as a member of our Board of Directors. On December 13, 2023, we and the Investors agreed to change certain terms of the Series A Convertible Preferred Stock, effected through an Exchange Agreement, pursuant to which the Investors exchanged (the “Series A Exchange”) all 100,000 shares of Series A Convertible Preferred Stock outstanding for 100,000 shares of our newly issued Series A-1 Convertible Preferred Stock, par value $0.10 per share (the “Series A-1 Convertible Preferred Stock”), with an initial liquidation preference of $1,134.20 per share. As a result of the Series A Exchange, no shares of Series A Convertible Preferred Stock remain outstanding. On January 22, 2024, we entered into a Subscription and Exchange Agreement with the Investors, relating to: (i) the issuance and sale of 45,000 shares of Series B Convertible Preferred Stock, par value $0.10 per share (the “Series B Convertible Preferred Stock”), for an aggregate purchase price of $45,000,000, or $1,000 per share (the “Primary Issuance”), (ii) the exchange of 100,000 shares of our Series A-1 Convertible Preferred Stock for 115,721.22 shares of Series B Convertible Preferred Stock (the “Series B Exchange”) and (iii) the issuance to the Investors of 5,400 shares of Series B Convertible Preferred Stock in lieu of cash for certain expense reimbursements (the “Series B Reimbursement” and, together with the Primary Issuance and the Series B Exchange, the “Series B Issuance”). As a result of the Series B Exchange, no shares of Series A-1 Convertible Preferred Stock remain outstanding. We received $43,200,000 of cash proceeds from the Primary Issuance, net of $1,800,000 for certain expense reimbursements. On June 17, 2024, in connection with entering into the Credit Facility discussed in Note (10) - Credit Facility, we and the Investors agreed to change certain terms of the Series B Convertible Preferred Stock. The changes altered the preferred holders’ existing consent rights and existing put rights alongside payments upon a change of control following specified asset sales, in each case consistent with the Credit Facility. To effect these changes, we and the Investors entered into a Subscription and Exchange Agreement, pursuant to which the Investors: (i) exchanged, in a transaction exempt from registration under the Securities Act of 1933, all of the 166,121.22 shares of Series B Convertible Preferred Stock outstanding for 166,121.22 shares of our newly issued Series B-1 Convertible Preferred Stock, par value $0.10 per share (the “Series B-1 Exchange”), with an initial liquidation preference of $1,036.58 per share, and (ii) received 5,705.83 additional shares of Series B-1 Convertible Preferred Stock as a consent fee (the "Series B-1 Fee"). As a result of the Series B-1 Exchange, no shares of Series B Convertible Preferred Stock remain outstanding. We did not receive any cash proceeds from the Series B-1 Exchange. Fiscal 2025 Activity On October 17, 2024, in connection with amending the Credit Facility discussed in Note (10) - Credit Facility, we and the Investors agreed to change certain terms of the Series B-1 Convertible Preferred Stock. The changes: altered the date on which preferred holders can opt to have us repurchase their Series B-2 Convertible Preferred Shares (as defined below) in certain circumstances; provided for increases to the dividend rate in certain circumstances and provided for an option for the preferred holders to elect to receive dividends in cash (to the extent permitted by law); and clarified the preferred holders’ existing consent rights, among other things. To effect the changes described above, we and the Investors entered into a new Subscription and Exchange Agreement (the "Subscription and Exchange Agreement"), pursuant to which the Investors: (i) exchanged all of the 171,827.05 shares of Series B-1 Convertible Preferred Stock outstanding for 171,827.05 shares of our newly issued Series B-2 Convertible Preferred Stock, par value $0.10 per share (the “Series B-2 Exchange”), with an initial liquidation preference of $1,067.87 per share; and (ii) received 3,436.53 additional shares of Series B-2 Convertible Preferred Stock as a consent fee (the "Series B-2 Fee" and, together with the Series B Reimbursement and the Series B-1 Fee, the “Additional Issuances”). As a result of the Series B-2 Exchange, no shares of Series B-1 Convertible Preferred Stock remain outstanding. We did not receive any cash proceeds from the Series B-2 Exchange. The Series B-2 Convertible Preferred Stock ranks senior to the shares of our common stock, with respect to the payment of dividends and the distribution of assets upon a liquidation, dissolution or winding up of the Company. Each share of Series B-2 Convertible Preferred Stock is entitled to a cumulative dividend (the “Dividend”) at the rate of 9.00% per annum, compounding quarterly, paid-in-kind, or 7.75% per annum, compounding quarterly, paid in cash, at our election (except as described below), or 6.50% per annum, in respect of any shares of Series B-2 Convertible Preferred Stock that remain outstanding following the redemption of at least fifty percent (50%) of the Series B-2 Convertible Preferred Stock pursuant to the exercise of an asset sale or change in control put right or an asset sale call right, as described below. The Dividend rate may also increase following certain events, including certain asset sales that constitute a change in control, as set forth in the certificate of designations governing the Series B-2 Convertible Preferred Stock (the "Series B-2 Certificate of Designations"). For any quarter in which the Dividend is not paid in cash, such Dividend becomes part of the liquidation preference of the Series B-2 Convertible Preferred Stock. In addition, no dividend or other distribution on our common stock will be declared or paid on our common stock unless, at the time of such declaration and payment, an equivalent dividend or distribution is declared and paid on the Series B-2 Convertible Preferred Stock (the “Participating Dividend”), provided that in the case of any such dividend in the form of cash, in lieu of a cash payment, such Participating Dividend will become part of the liquidation preference of the Series B-2 Convertible Preferred Stock. Such Participating Dividend results in the Series B-2 Convertible Preferred Stock meeting the definition of a "participating security" for purposes of our earnings per share calculations. Following the satisfaction of all obligations under the Credit Facility in full and the termination of all of commitments under the Credit Facility (a “CA Satisfaction”), and (i) our failure to fully satisfy an exercised put right (other than a put right exercised in connection with an Asset Sale that constitutes a change in control) or (ii) beginning on or after April 30, 2027 (or later in certain circumstances), holders of the Series B-2 Convertible Preferred Stock will be entitled to elect to have us pay the Dividend in cash (to the extent permitted by law). The shares of Series B-2 Convertible Preferred Stock are convertible into shares of common stock at the option of the holder thereof at any time. At any time after July 22, 2027, we have the right to mandate conversion of the Series B-2 Convertible Preferred Stock, subject to certain restrictions based on the price of our common stock in the preceding thirty (30) trading days. The conversion price for the Series B-2 Convertible Preferred Stock is $7.99, subject to certain adjustments set forth in the Series B-2 Certificate of Designations. Holders of the Series B-2 Convertible Preferred Stock are entitled to vote with the holders of our common stock on an as-converted basis, and are entitled to a separate class vote with respect to, among other things, amendments to our organizational documents that have an adverse effect on the Series B-2 Convertible Preferred Stock, authorizations or issuances of securities of the Company (other than the issuance of up to $50,000,000 of shares of common stock), the payment of dividends, related party transactions, repurchases or redemptions of securities of the Company, dispositions of businesses or assets involving consideration having a fair value in excess of $75,000,000 (or $20,000,000 following a CA Satisfaction), the incurrence of certain indebtedness and certain amendments or extensions of our Credit Facility on terms and conditions that, taken as a whole, (A) are materially different from the existing Credit Facility or (B) adversely affect our ability to perform our obligations in connection with an optional repurchase of the Series B-2 Convertible Preferred Stock, in each case, subject to the exceptions and qualifications set forth in the Series B-2 Certificate of Designations. Holders have the right to require us to repurchase their Series B-2 Convertible Preferred Stock (at 1.0x the liquidation preference, plus accrued and unpaid dividends) on a date occurring either: (a) on or after October 31, 2028, (b) upon the consummation of an asset sale meeting certain criteria, or (c) on or after April 30, 2027 following a CA Satisfaction. We have the right to repurchase all, or less than all, of the Series B-2 Convertible Preferred Stock upon the consummation of an asset sale meeting the same criteria, other than an asset sale that would result in a change-of-control. In addition, each holder will have the right to cause us to repurchase its Series B-2 Convertible Preferred Stock in connection with a Change of Control (as defined in the Series B-2 Certificate of Designations) at 1.5x (or 1.0x in the case of Series B-2 Convertible Preferred Stock issued in the Additional Issuances) the liquidation preference, plus accrued and unpaid dividends. Any repurchase described above would be subject to the terms set forth in the Series B-2 Certificate of Designations. Upon a repurchase of the Series B-2 Convertible Preferred Stock at 1.0x the liquidation preference, we will issue each respective holder a warrant (a “Warrant”). A Warrant will represent the right to acquire our common stock, as further described in the Subscription and Exchange Agreement, for a term of five years and six months from the issuance of such Warrant, at an initial exercise price equal to the conversion price on the date of issuance of such Warrant, subject to certain adjustments. We determined that our obligation to issue a Warrant met the definition of a freestanding financial instrument that should be accounted for as a liability. The Warrant liability is classified in " Other liabilities " on the Condensed Consolidated Balance Sheets and is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs, until the Warrant is exercised or expires. Changes in the estimated fair value of the Warrant are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024 and July 31, 2024, the Warrant liability was remeasured to $3,063,000 and $710,000, respectively, resulting in non-cash expense for the three months ended October 31, 2024 of $2,353,000 recorded in " Other expenses (income) - Change in fair value of warrants and derivatives " on the Condensed Consolidated Statements of Operations . We accounted for the cancellation of our Series B-1 Convertible Preferred Stock as an extinguishment based on a qualitative and quantitative assessment of the terms of the preferred shares exchanged. We recognized a $51,179,000 gain on extinguishment, representing the difference between the carrying value of the Series B-1 Convertible Preferred Stock and the issuance date fair value of the Series B-2 Convertible Preferred Stock. As the Series B-1 Convertible Preferred Stock was classified as temporary equity, the gain on extinguishment was included as an offset in determining net loss attributable to common stockholders and credited to retained earnings as a return from the holders. We identified several embedded derivatives that require bifurcation from the Series B-2 Convertible Preferred Stock under ASC 815, including the holders' right to: (i) require us to repurchase Series B-2 Convertible Preferred Stock upon the consummation of an asset sale meeting certain criteria, or in connection with a change in control; (ii) convert Series B-2 Convertible Preferred Shares into shares of our common stock; (iii) increase the dividend rate in certain circumstances; and (iv) elect to receive cash dividends in certain circumstances. When evaluating such embedded derivatives, we determined that the Series B-2 Convertible Preferred Stock was more akin to a debt-like host than an equity-like host. We also determined that such features qualify for accounting as one combined embedded derivative liability. We established an initial embedded derivative liability of $38,832,000, which was recorded as a reduction to the initial fair value of the Series B-2 Convertible Preferred Stock and presented with "Other liabilities" on the Condensed Consolidated Balance Sheets. The combined embedded derivative liability is remeasured to its estimated fair value each reporting period, using Level 3 fair value inputs. Changes in the estimated fair value of the combined embedded derivative liability are recognized in our Condensed Consolidated Statements of Operations as a non-cash expense or benefit. As of October 31, 2024, the embedded derivative liability was remeasured to $39,114,000, resulting in a non-cash expense for the three months ended October 31, 2024 of $282,000 recorded in " Other expenses (income) - Change in fair value of warrants and derivatives " on the Condensed Consolidated Statements of Operations. In accordance with ASC 480, Distinguishing Liabilities from Equity , specifically ASC 480-10-S99-3A(2), SEC Staff Announcement: Classification and Measurement of Redeemable Securities , we classified the Series B-2 Convertible Preferred Stock outside of permanent equity, as temporary equity, since the redemption of such shares is at the option of the holder on a fixed date or upon the occurrence of certain events that are not solely within our control. Upon the Series B-2 Exchange, the initial estimated fair value of the Series B-2 Convertible Preferred Stock was $132,310,000. We reduced the initial estimated fair value of the Series B-2 Convertible Preferred Stock to establish the initial combined embedded derivative liability, as discussed above. We also adjusted the carrying value of the Series B-2 Convertible Preferred Stock at October 31, 2024 based on its redemption value of $187,814,000, which includes $655,000 of accumulated and unpaid dividends. During the three months ended October 31, 2024, the adjustments charged against retained earnings and additional paid in capital to increase the carrying values of Convertible Preferred Stock, while outstanding, to their respective redemption values totaled $58,634,000. The following table presents the allocation of the initial estimated fair value of the Series B-2 Convertible Preferred Stock to its host instrument and combined embedded derivatives on October 17, 2024: Initial estimated fair value of Series B-2 Convertible Preferred Stock $ 132,310,000 Initial estimated fair value and carrying value of combined embedded derivatives 38,832,000 Initial carrying value of Series B-2 Convertible Preferred Stock $ 93,478,000 The following table presents a reconciliation of the adjustments to increase the carrying values of the Convertible Preferred Stock to their redemption values while outstanding: Three months ended October 31, 2024 Redemption value of Series B-2 Convertible Preferred Stock at October 31, 2024 $ 187,814,000 Less: Carrying value of combined embedded derivatives at October 31, 2024 39,114,000 Carrying value of Series B-2 Convertible Preferred Stock at October 31, 2024 148,700,000 Less: Initial carrying value of Series B-2 Convertible Preferred Stock at October 17, 2024 93,478,000 Adjustment to increase carrying value of Series B-2 Convertible Preferred Stock to 55,222,000 Adjustment to increase carrying value of Series B-1 Convertible Preferred Stock to 3,412,000 Total adjustments to redemption values charged to Stockholder's Equity $ 58,634,000

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Oct. 31, 2024
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Shelf Registration On July 13, 2022, we filed a $200,000,000 shelf registration statement with the SEC for the sale of various types of securities, including debt securities. This shelf registration statement was declared effective by the SEC as of July 25, 2022 and expires on July 25, 2025. To date, we have not issued any securities pursuant to our $200,000,000 shelf registration statement. Because of delinquencies in our Exchange Act reporting, we cannot issue securities under the shelf registration statement without first filing a post-effective amendment to such shelf registration statement with the SEC. Common Stock Repurchase Program On September 29, 2020, our Board of Directors authorized a $100,000,000 stock repurchase program, which replaced our prior program. The $100,000,000 stock repurchase program has no time restrictions and repurchases may be made from time to time in open-market or privately negotiated transactions, or by other means in accordance with federal securities laws. There were no repurchases during the three months ended October 31, 2024 and 2023. Additional Paid in Capital During the three months ended October 31, 2024, $52,255,000 of the adjustments to the carrying values of outstanding Convertible Preferred Stock to their respective redemption values, while outstanding, was charged to additional paid in capital so as not to exceed the available amount of retained earnings as of October 31, 2024.

Legal Proceedings and Other Mat

Legal Proceedings and Other Matters	3 Months Ended
	Oct. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings and Other Matters	Legal Proceedings and Other Matters Former CEO Related Matters On March 12, 2024, the Company terminated Ken Peterman, its President and CEO at the time, for Cause pursuant to the terms of his employment agreement dated September 12, 2022 (the “Employment Agreement”). On November 21, 2024 (as amended on December 31, 2024), Mr. Peterman filed a claim with the American Arbitration Association, alleging that Comtech materially breached the Employment Agreement in the termination for Cause and that the termination was a retaliation for whistleblowing by Mr. Peterman in connection with certain of the Company’s prior financial and accounting practices. The Company independently investigated, with the assistance of an outside advisor, Mr. Peterman's allegations that he was a whistleblower and determined that such allegations were not substantiated. Mr. Peterman claims he is owed direct contractual damages in an amount in excess of $6,000,000 and consequential damages for injury to his professional reputation in excess of $35,000,000. The Company believes Mr. Peterman's claims are entirely without merit and will defend itself vigorously in the matter. On December 11, 2024, Mr. Peterman was indicted by the United States Attorney for the Eastern District of New York and arrested on charges of insider trading and securities fraud. He was also charged with similar allegations by the SEC in a civil lawsuit filed in the Eastern District of New York the same day. The Company is not named as a defendant in either proceeding. CGC Divestiture Export Matters As discussed further in Note (2) – Divestitures, during our fourth quarter of fiscal 2024, we ceased operations of our steerable antenna product line in Basingstoke, United Kingdom, which incurred cumulative operating losses since our acquisition of this business in fiscal 2020. In November 2024, as part of the wind down of such operations, we completed a disclosure to His Majesty’s Revenue and Customs agency in the United Kingdom (“HMRC”) related to potential violations of export compliance laws in the United Kingdom. Such disclosure was precipitated by the United Kingdom customs agency’s halting, in March 2024, an antenna shipment destined for end use by a customer in Azerbaijan and for which we did not have an appropriate export license at the time. Due to our commitment to comply with global export regulations, we immediately and voluntarily initiated a historical review of exports from our Basingstoke location since our acquisition of such business in fiscal 2020. Based on such review, we voluntarily disclosed to the HMRC a misclassification of specially designed, configured or modified antenna systems for military end users and build-to-print aircraft parts. Based on HMRC guidelines and with the assistance of outside local counsel, we estimated that monetary fines and penalties related to potential violations as outlined in our disclosure could range from zero to approximately $9,000,000, with no single amount within that range being a best estimate. Through the issuance date, based on such review and disclosure to HMRC, we determined that a financial loss related to this matter is more than remote, but less than probable given the multiple factors that could influence the ultimate outcome, including but not limited to: the voluntary nature of our disclosure; our Basingstoke operation’s historical compliance record; the number of exports involved; and the nature of the potential violation(s). Based on such determination, we have not accrued for any contingent loss related to these matters as of October 31, 2024. Other Matters In the ordinary course of business, we include indemnification provisions in certain of our customer contracts to indemnify, hold harmless and reimburse such customers for certain losses, including but not limited to losses related to third-party claims of intellectual property infringement arising from the customer’s use of our products or services. We may also, from time to time, receive indemnification requests from customers related to third-party claims that 911 calls were improperly routed during an emergency. We evaluate such claims as and when they arise. We do not always agree with customers that they are entitled to indemnification and in such cases reject their claims. Despite maintaining that we have properly carried out our duties, we may seek coverage under our various insurance policies; however, we cannot be sure that we will be able to maintain or obtain insurance coverage at acceptable costs or in sufficient amounts or that our insurer will not disclaim coverage as to such claims. Accordingly, pending or future claims asserted against us by a party that we are obligated to indemnify could result in legal costs and damages that could have a material adverse effect on our consolidated results of operations and financial condition. There are also certain other pending and threatened legal actions which arise in the normal course of business. Although the ultimate outcome of these matters is difficult to accurately predict, we believe that the outcome of these other matters will not have a material adverse effect on our consolidated financial condition or results of operations. Employment, Change of Control and Indemnification Agreements We have entered into employment and/or change of control agreements, as well as indemnification agreements with certain of our executive officers and certain key employees. All of these agreements may require payments by us, in certain circumstances, including, but not limited to, a change in control of the Company or termination of the employee.

Cost Reduction

Cost Reduction	3 Months Ended
	Oct. 31, 2024
Restructuring and Related Activities [Abstract]
Cost Reduction	Cost Reduction and Restructuring Related Activities As of July 31, 2024, our severance liability was $1,029,000. During the three months ended October 31, 2024, in connection with our transformation strategy, we actioned a reduction in force principally within our Satellite and Space Communications and Unallocated segments. Such reduction approximated 6% of our workforce as of July 31, 2024, or approximately $8,000,000 in annualized labor costs. During the three months ended October 31, 2024, we recorded $1,227,000 of severance costs within Selling, general and administrative e xpenses in our Condensed Consolidated Statements of Operations . After net payments of $1,620,000 during the three months ended October 31, 2024, our severance liability was $636,000 as of October 31, 2024. Subsequent Event Subsequent to quarter-end, we further reduced our workforce as of July 31, 2024 by another 7%, or approximately $18,000,000 in annualized labor costs. Such reductions were made within our Satellite and Space Communications and Unallocated segments. Severance associated with such actions of approximately $1,100,000 will be expensed in the second quarter of fiscal 2025. As of the issuance date, we had approximately 1,500 employees, compared to 1,676 employees as of July 31, 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (148,407,000)	$ (1,437,000)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Oct. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

General (Policy)

General (Policy)	3 Months Ended
	Oct. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	The accompanying Condensed Consolidated Financial Statements of Comtech Telecommunications Corp. and its subsidiaries ("Comtech," "we," "us," or "our") as of and for the three months ended October 31, 2024 and 2023 are unaudited. In the opinion of management, the information furnished reflects all material adjustments (which include normal recurring adjustments) necessary for a fair presentation of the results for the unaudited interim periods. Our results of operations for such periods are not necessarily indicative of the results of operations to be expected for the full fiscal year. The preparation of our Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the Condensed Consolidated Financial Statements , and the reported amounts of net sales and expenses during the reported period. Actual results may differ from those estimates. Our Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements, filed with the Securities and Exchange Commission ("SEC"), for the fiscal year ended July 31, 2024 and the notes thereto contained in our Annual Report on Form 10-K, and all of our other filings with the SEC. Liquidity and Going Concern Pursuant to the requirements of ASC Topic 205-40, " Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern ," we are required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern. This evaluation does not take into consideration the potential mitigating effect of our plans that have not been fully implemented or are not within our control as of the date the unaudited Condensed Consolidated Financial Statements are issued. When substantial doubt exists, we are required to evaluate whether the mitigating effect of our plans sufficiently alleviates substantial doubt about our ability to continue as a going concern. The mitigating effect of our plans, however, is only considered if both (i) it is probable that the plans will be effectively implemented within one year after the date that the unaudited Condensed Consolidated Financial Statements are issued, and (ii) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about our ability to continue as a going concern within one year after the date that the unaudited Condensed Consolidated Financial Statements are issued. As of the date these financial statements were issued (the "issuance date"), we evaluated whether the following conditions or events, considered in the aggregate, raise substantial doubt about our ability to continue as a going concern over the next twelve months beyond the issuance date. Over the past three fiscal years, we incurred operating losses of $79,890,000, $14,660,000 and $33,752,000 in fiscal 2024, 2023 and 2022, respectively. More recently, we recognized an operating loss of $129,170,000 in the three months ended October 31, 2024. In addition, over the past three fiscal years, net cash used in operating activities was $54,495,000 and $4,433,000 in fiscal 2024 and 2023, respectively, and net cash provided by operating activities was $1,997,000 in fiscal 2022. More recently, net cash used in operating activities was $21,806,000 in the three months ended October 31, 2024. Our ability to meet future anticipated liquidity needs over the next year beyond the issuance date will largely depend on our ability to generate positive cash inflows from operations, maximize our borrowing capacity under our Credit Facility, as discussed further below, and/or secure other sources of outside capital. While we believe we will be able to generate sufficient positive cash inflows, maximize our borrowing capacity and secure outside capital, there can be no assurance our plans will be successfully implemented and, as such, we may be unable to continue as a going concern over the next year beyond the issuance date. As discussed further in Note (10) – Credit Facility, on June 17, 2024, we entered into a $222,000,000 credit facility with a new syndicate of lenders, which replaced our prior credit facility. As further discussed below, we subsequently amended the credit facility on October 17, 2024 (the "Credit Facility"). The Credit Facility consists of a committed $162,000,000 term loan (“Term Loan”) and $60,000,000 revolving loan (“Revolver Loan”). At October 31, 2024 and January 10, 2025 (the date closest to the issuance date), total outstanding borrowings under the Credit Facility were $199,495,000. At both October 31, 2024 and January 10, 2025, $32,500,000 was drawn on the Revolver Loan. As of the issuance date, our available sources of liquidity approximate $28,500,000, consisting solely of qualified cash and cash equivalents. That is, our available sources of liquidity do not include the remaining portion of the committed Revolver Loan due to the revolving lender's and Agent's consent right, discussed below, to any borrowings that exceed $32,500,000. The Credit Facility, among other things, requires compliance with new restrictive and financial covenants, including: a maximum Net Leverage Ratio of 3.25x commencing with the fiscal quarter ending January 31, 2025; a minimum Fixed Charge Coverage Ratio of 1.20x commencing with the four fiscal quarter period ending January 31, 2025; a minimum Average Liquidity requirement at each quarter end of $20,000,000; and a minimum EBITDA of $35,000,000 for the four fiscal quarter period ending October 31, 2025. Such ratios and minimum EBITDA adjust under the Credit Facility in future periods. Over the next twelve months beyond the issuance date, commencing with our fiscal quarter ending January 31, 2025, we believe that we will not be able to comply with one or more of these covenants. The Credit Facility was amended on October 17, 2024 to waive certain defaults or events of default, including in connection with our Net Leverage Ratio and Fixed Charge Coverage Ratio covenants as of July 31, 2024. The amendment also, among other things: (i) increased the interest rate margins applicable to the loans; (ii) modified certain financial and collateral reporting requirements; (iii) provided a consent right to the revolving lender and Agent with respect to $27,500,000 of Revolver Loan borrowings above $32,500,000; (iv) permitted the incurrence of $25,000,000 of senior unsecured subordinated debt (as described below); (v) amended the maturity date to the earlier of (x) July 31, 2028 or (y) 90 days prior to the earliest date that the debt under the Subordinated Credit Agreement (as defined below) becomes due and payable; and (vi) suspended certain financial covenant testing through the end of our fiscal quarter ending January 31, 2025. In addition, we entered into a Subordinated Credit Agreement with the existing holders of our Convertible Preferred Stock (the “Subordinated Credit Agreement”) on October 17, 2024, which provides a subordinated unsecured term loan facility in the aggregate principal amount of $25,000,000 (the “Subordinated Credit Facility”). The proceeds of the Subordinated Credit Facility: (i) cured our default on certain financial covenants under the Credit Facility, as discussed above; (ii) provided additional liquidity to us; and (iii) funded our general working capital needs. Our ability to meet our current obligations as they become due may be impacted by our ability to remain compliant with the financial covenants required by the Credit Facility, or to obtain future waivers or amendments from the lenders in the event compliance is not maintained. While we believe we will be able to secure such waivers or amendments, as needed, there can be no assurance such waivers or amendments will be secured or on terms that are acceptable to us. If we are unable to secure waivers or amendments, the lenders may declare an event of default, which would cause an immediate acceleration and repayment of all outstanding principal, interest and fees due under our Credit Facility. Absent our ability to repay the forgoing amounts upon the declaration of an event of default, the lenders may exercise their rights and remedies under the Credit Facility, which may include, among others, a seizure of substantially all of our assets and/or the liquidation of our operations. If an event of default occurs that allows the lenders to exercise these rights and remedies over the next year beyond the issuance date, we will be unable to continue as a going concern. As of the issuance date, our plans to address our ability to continue as a going concern include, among other things: • executing a strategy to transform Comtech (ongoing and future actions supporting our transformation strategy include: an exploration of strategic alternatives for our various businesses and product lines; the pursuit of further portfolio-shaping opportunities to enhance profitability, efficiency and focus; and the implementation of additional operational initiatives to both achieve profitable results from operations as well as to align our go-forward cost structure with our future state business), as discussed further in Note (21) – Cost Reduction and Restructuring Related Activities; • pursuing initiatives to reduce investments in working capital, namely accounts receivable and inventory; • improving process disciplines to attain and maintain profitable operations by entering into more favorable sales or service contracts; • reevaluating our business plans to identify opportunities (e.g., within each of our segments) to focus future investment on our most strategic, high-margin revenue opportunities; • reevaluating our business plans to identify opportunities to further reduce capital expenditures; • seeking opportunities to improve liquidity through any combination of debt and/or equity financing (including possibly restructuring our Credit Facility, Convertible Preferred Stock and/or Subordinated Credit Facility); and • seeking other strategic transactions and/or measures including, but not limited to, the potential sale or divestiture of assets in addition to the wind down of our steerable antenna product line in Basingstoke, U.K. While we believe the implementation of some or all of the elements of our plans over the next year beyond the issuance date will be successful, these plans are not all solely within management’s control and, as such, we can provide no assurance our plans are probable of being effectively implemented as of the issuance date. Therefore, the adverse conditions and events described above are uncertainties that raise substantial doubt about our ability to continue as a going concern. The accompanying Condensed Consolidated Financial Statements have been prepared on the basis that we will continue to operate as a going concern, which contemplates we will be able to realize assets and settle liabilities and commitments in the normal course of business for the foreseeable future. Accordingly, the accompanying Condensed Consolidated Financial Statements do not include any adjustments that may result from the outcome of these uncertainties.
Adoption of Accounting Standards and Updates	Adoption of Accounting Standards and Updates We are required to prepare our Condensed Consolidated Financial Statements in accordance with the FASB ASC, which is the source for all authoritative U.S. generally accepted accounting principles, which are commonly referred to as "GAAP." The FASB ASC is subject to updates by the FASB, which are known as Accounting Standards Updates ("ASUs"). During the three months ended October 31, 2024, the following FASB ASUs have been issued and incorporated into the FASB ASC and have not yet been adopted by us as of October 31, 2024: • FASB ASU No. 2023-07, which requires the disclosure of significant segment expenses, by reportable segment, regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. The disclosure of other segment items by reportable segment are also required and would constitute the difference between segment revenues less these significant segment expenses and reported segment profit or loss. On an annual basis, the update requires an entity to disclose the CODM's title and position, as well as describe how the CODM uses the reported measures. Additionally, all existing annual disclosures about segment profit or loss must be provided on an interim basis in addition to the disclosure of significant segment expenses and other segment items. This ASU is effective for fiscal years beginning after December 15, 2023 (our fiscal year beginning on August 1, 2024) and for interim periods within fiscal years beginning after December 15, 2024 (our interim period beginning on August 1, 2025), with early adoption permitted. The adoption of this guidance will impact our disclosures only and we do not expect it to have a material impact on our Condensed Consolidated Financial Statements . • FASB ASU No. 2023-09 enhances and establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Most notably under the new requirements is greater disaggregation of information in the effective tax rate reconciliation, including the inclusion of both percentages and amounts, specific categories, and additional information for reconciling items meeting a quantitative threshold defined by the guidance. Additionally, disclosures of income taxes paid and income tax expense must be disaggregated by federal, state and foreign taxes, with income taxes paid further disaggregated for individual jurisdictions that represent 5 percent or more of total income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 (our fiscal year beginning on August 1, 2025), with early adoption permitted. We are evaluating the impact of this ASU on our Condensed Consolidated Financial Statements and disclosures. • FASB ASU No. 2024-03, which requires more detailed disclosures of certain categories of expenses (including purchases of inventory, employee compensation, depreciation, and amortization) that are components of existing expense captions presented on the face of the income statement. All entities are required to apply the guidance prospectively with an option for retrospective application. This ASU is effective for fiscal years beginning after December 15, 2026 (our fiscal year beginning on August 1, 2027), and interim periods within fiscal years beginning after December 15, 2027 (our interim period beginning on August 1, 2028), with early adoption permitted. We are evaluating the impact of this ASU on our Condensed Consolidated Financial Statements and disclosures.
Revenue Recognition	Revenue Recognition In accordance with FASB ASC 606, " Revenue from Contracts with Customers " ("ASC 606"), we record revenue in an amount that reflects the consideration to which we expect to be entitled in exchange for goods or services promised to customers. Under ASC 606, we follow a five-step model to: (1) identify the contract with our customer; (2) identify our performance obligations in our contract; (3) determine the transaction price for our contract; (4) allocate the transaction price to our performance obligations; and (5) recognize revenue using one of the following two methods: • Over time - We recognize revenue using the over time method when there is a continuous transfer of control to the customer over the contractual period of performance. This generally occurs when we enter into a long-term contract relating to the design, development or manufacture of complex equipment or technology platforms to a buyer’s specification (or to provide services related to the performance of such contracts) for which we have determined there is no alternative use, as defined in ASC 606. Continuous transfer of control is typically supported by contract clauses which allow our customers to unilaterally terminate a contract for convenience, pay for costs incurred plus a reasonable profit and take control of work-in-process. Revenue recognized over time is generally based on the extent of progress toward completion of the related performance obligations. The selection of the method to measure progress requires judgment and is based on the nature of the products or services provided. In certain instances, typically for firm fixed-price contracts, we use the cost-to-cost measure because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion, including warranty costs. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Costs to fulfill generally include direct labor, materials, subcontractor costs, other direct costs and an allocation of indirect costs. When these contracts are modified, the additional goods or services are generally not distinct from those already provided. As a result, these modifications form part of an existing contract and we must update the transaction price and our measure of progress for the single performance obligation and recognize a cumulative catch-up to revenue and gross profits. For over time contracts using a cost-to-cost measure of progress, we have an estimate at completion ("EAC") process in which management reviews the progress and execution of our performance obligations. This EAC process requires management judgment relative to assessing risks, estimating contract revenue and costs, and making assumptions for schedule and technical issues. Since certain contracts extend over a long period of time, the impact of revisions in revenue and/or cost estimates during the progress of work may impact current period earnings through a cumulative adjustment. Additionally, if the EAC process indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident. Contract revenue and cost estimates for significant contracts are generally reviewed and reassessed at least quarterly. The cost-to-cost method is principally used to account for contracts in our Satellite and Space Communications segment and, to a lesser extent, certain location-based and messaging infrastructure contracts in our public safety and location technologies product line within our Terrestrial and Wireless Networks segment. For service-based contracts in our Terrestrial and Wireless Networks segment, we also recognize revenue over time. These services are typically recognized as a series of services performed over the contract term using the straight-line method, or based on our customers’ actual usage of the networks and platforms which we provide. • Point in time - When a performance obligation is not satisfied over time, we must record revenue using the point in time accounting method which generally results in revenue being recognized upon shipment or delivery of a promised good or service to a customer. This generally occurs when we enter into short-term contracts or purchase orders where items are provided to customers with relatively quick turn-around times. Modifications to such contracts and/or purchase orders, which typically provide for additional quantities or services, are accounted for as a new contract because the pricing for these additional quantities or services are based on standalone selling prices. Point in time accounting is principally applied to contracts in our satellite ground infrastructure product line (which includes satellite modems and traveling wave tube amplifiers). The contracts related to these product lines do not meet the requirements for over time revenue recognition because our customers cannot utilize the equipment for its intended purpose during any phase of our manufacturing process; customers do not simultaneously receive and/or consume the benefits provided by our performance; customers do not control the asset (i.e., prior to delivery, customers cannot direct the use of the asset, sell or exchange the equipment, etc.); and, although many of our contracts have termination for convenience clauses and/or an enforceable right to payment for performance completed to date, our performance creates an asset with an alternative use through the point of delivery. In determining that our equipment has alternative use, we considered the underlying manufacturing process for our products. In the early phases of manufacturing, raw materials and work in process (including subassemblies) consist of common parts that are highly fungible among many different types of products and customer applications. Finished products are either configured to our standard configuration or based on our customers’ specifications. Finished products, whether built to our standard specification or to a customers’ specification, can be sold to a variety of customers and across many different end use applications with minimal rework, if needed, and without incurring a significant economic loss. When identifying a contract with our customer, at inception, we consider approvals and commitments from both parties, if the rights of the parties are identified, if the payment terms are identified, if it has commercial substance, the transaction price to which we are entitled and if collectability is probable. When identifying performance obligations, we consider whether there are multiple promises and how to account for them. In our contracts, multiple promises are separated if they are distinct, both individually and in the context of the contract. If multiple promises in a contract are highly interrelated or comprise a series of distinct services performed over time, they are combined into a single performance obligation. In some cases, we may also provide the customer with an additional service-type warranty, which we recognize as a separate performance obligation. Service-type warranties do not represent a significant portion of our consolidated net sales. When service-type warranties represent a separate performance obligation, the revenue is deferred and recognized ratably over the extended warranty period. Our contracts, from time-to-time, may also include options for additional goods and services. To date, these options have not represented material rights to the customer as the pricing for them reflects standalone selling prices. As a result, we do not consider options we offer to be performance obligations for which we must allocate a portion of the transaction price. In many cases, we provide assurance-type warranty coverage for some of our products for a period of at least one year from the date of delivery. When identifying the transaction price, we typically utilize the contract's stated price as a starting point. The transaction price in certain arrangements may include estimated amounts of variable consideration, including award fees, incentive fees or other provisions that can either increase or decrease the transaction price. We estimate variable consideration as the amount to which we expect to be entitled, and we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the estimation uncertainty is resolved. The estimation of this variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (e.g., historical, current and forecasted) that is reasonably available to us. When allocating the contract’s transaction price, we consider each distinct performance obligation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. We determine standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions, including geographic or regional specific factors, competitive positioning, internal costs, profit objectives and internally approved pricing guidelines related to the performance obligations. The timing of revenue recognition, billings and collections results in receivables, unbilled receivables and contract liabilities on our Condensed Consolidated Balance Sheets . Under typical payment terms for our contracts accounted for over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly) or upon achievement of contractual milestones. For certain contracts with provisions that are intended to protect customers in the event we do not satisfy our performance obligations, billings occur subsequent to revenue recognition, resulting in unbilled receivables. Under ASC 606, unbilled receivables constitute contract assets. Except for certain unbilled receivables (see Note (7) - Accounts Receivable ) and work in process inventory (see Note (8) - Inventories ), there were no other material impairment losses recognized on contract assets during the three months ended October 31, 2024 and 2023, respectively. On large long-term contracts, and for contracts with international customers that do not do business with us regularly, payment terms typically require advanced payments and deposits. Under ASC 606, payments received from customers in excess of revenue recognized to-date results in a contract liability. These contract liabilities are not considered to represent a significant financing component of the contract because we believe these cash advances and deposits are generally used to meet working capital demands which can be higher in the earlier stages of a contract. Also, advanced payments and deposits provide us with some measure of assurance that the customer will perform on its obligations under the contract. Under the typical payment terms for our contracts accounted for at a point in time, costs are accumulated in inventory until the time of billing, which generally coincides with revenue recognition. Of the current contract liability balance of $65,834,000 at July 31, 2024 and $66,351,000 at July 31, 2023, $28,764,000 and $20,737,000 was recognized as revenue during the three months ended October 31, 2024 and 2023, respectively. We recognize the incremental costs to obtain or fulfill a contract as an expense when incurred if the amortization period of the asset is one year or less; otherwise, such costs are capitalized and amortized over the estimated life of the contract. During the three months ended October 31, 2024 and 2023, incremental costs to obtain or fulfill contracts with an amortization period greater than one year were $1,165,000 and $483,000, respectively. Commissions payable to our internal sales and marketing employees or contractors that are incremental to the acquisition of long-term customer contracts are capitalized and amortized consistent with the pattern of revenue recognition through cost of sales on our Condensed Consolidated Statements of Operations . Commissions payable that are not incremental to the acquisition of long-term contracts are expensed as incurred in selling, general and administrative expenses on our Condensed Consolidated Statements of Operations . As for commissions payable to our third-party sales representatives related to large long-term contracts, we consider these types of commissions both direct and incremental costs to obtain and fulfill such contracts. Therefore, such commissions are included in total estimated costs at completion for such contracts and expensed over time through cost of sales on our Condensed Consolidated Statements of Operations .
Fair Value Measurements and Financial Instruments	Fair Value Measurements and Financial Instruments Using the fair value hierarchy described in FASB ASC 820 " Fair Value Measurements and Disclosures," we valued our cash and cash equivalents using Level 1 inputs that were based on quoted market prices. We believe that the carrying amounts of our other current financial assets (such as accounts receivable) and other current liabilities (including accounts payable, accrued expenses and the current portion of long-term debt) approximate their fair values due to their short-term maturities. Additionally, the carrying amounts of our debt approximate their fair values due to variable interest rates and pricing grids related to such debt, as amended or first entered into on October 17, 2024. Level 3 inputs are unobservable inputs developed using the best available information under the circumstances. Level 3 inputs are supported by little or no market activity, are significant to the fair value of the assets or liabilities and reflect our assumptions related to how market participants would use similar inputs to price the asset or liability. As further discussed in Note (10) - Credit Facility, we used Level 3 inputs to value the warrants issued to lenders in connection with our Credit Facility. As of October 31, 2024, we determined the fair value of such warrants based on the Black-Scholes option pricing model using the following estimates: exercise price of $0.10, risk free rate of 4.2%, volatility of 60.0%, and expected life of 6.6 years. We also used Level 3 inputs to value the combined embedded derivative liability associated with our Credit Facility. As of October 31, 2024, we determined the fair value of the combined embedded derivative liability using a with-and-without scenario-based discounted cash flow method, which reflected our estimates regarding the probability and timing of events that could result in additional payments of interest and/or fees to such lenders as stated in our Credit Facility. As further discussed in Note (11) - Subordinated Credit Facility, we used Level 3 inputs to value the make-whole amount and combined embedded derivative liability associated with our Subordinated Credit Facility. As of October 31, 2024, we determined the fair value of the combined embedded derivative liability using a with-and-without scenario-based discounted cash flow method, which reflected our estimates regarding the probability and timing of events that could result in additional payments of interest and/or fees to such lenders as stated in our Subordinated Credit Facility. As further discussed in Note (18) - Convertible Preferred Stock, we used Level 3 inputs to value the warrants contingently issuable and combined embedded derivative liability associated with our Convertible Preferred Stock. As of October 31, 2024, we determined the fair value of Convertible Preferred Stock warrants using the Monte Carlo simulation model with the following assumptions: expected life of 6.2 years; risk free rate of 4.2%; expected volatility of 60.0%; and dividend yield of 0%. As of October 31, 2024, we determined the fair value of the combined embedded derivative liability using a with-and-without scenario-based discounted cash flow method, which reflected our estimates regarding the probability and timing of events that could result in additional and/or accelerated payments to our preferred shareholders, or the conversion of the Convertible Preferred Stock into common stock, pursuant to the terms of our Convertible Preferred Stock. As of October 31, 2024 and July 31, 2024, other than the financial instruments discussed above, we had no other significant assets or liabilities included in our Condensed Consolidated Balance Sheets recorded at fair value, as such term is defined by FASB ASC 820.
Earnings Per Share	Earnings Per Share Our basic earnings per share ("EPS") is computed based on the weighted average number of common shares (including vested but unissued stock units, share units, performance shares and restricted stock units ("RSUs")) outstanding during each respective period. Our diluted EPS reflects the dilution from potential common stock issuable pursuant to the exercise of equity-classified stock-based awards, warrants issued to our lenders in connection with entering the Credit Facility, settlement of escrow arrangements related to our acquisition of UHP Networks Inc. ("UHP") and the assumed conversion of Convertible Preferred Stock, if dilutive, outstanding during each respective period. The warrants contingently issuable to our preferred shareholders upon a repurchase of the Series B-2 Convertible Preferred Stock are not reflected in diluted EPS. Pursuant to FASB ASC 260 " Earnings Per Share

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Oct. 31, 2024
Revenue from Contract with Customer [Abstract]
Sale by geography and customer type	Sales by geography and customer type, as a percentage of consolidated net sales, are as follows: Three months ended October 31, 2024 2023 United States U.S. government 35.4 % 35.3 % Domestic 48.4 % 40.2 % Total United States 83.8 % 75.5 % International 16.2 % 24.5 % Total 100.0 % 100.0 %
Disaggregation of revenue	The following tables summarize our disaggregation of revenue consistent with information reviewed by our CODM for the three months ended October 31, 2024 and 2023. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors which impact our business: Three months ended October 31, 2024 Satellite and Space Communications Terrestrial and Wireless Networks Total Geographical region and customer type U.S. government $ 40,427,000 598,000 $ 41,025,000 Domestic 4,847,000 51,160,000 56,007,000 Total United States 45,274,000 51,758,000 97,032,000 International 13,659,000 5,109,000 18,768,000 Total $ 58,933,000 56,867,000 $ 115,800,000 Contract type Firm fixed-price $ 48,261,000 56,867,000 $ 105,128,000 Cost reimbursable 10,672,000 — 10,672,000 Total $ 58,933,000 56,867,000 $ 115,800,000 Transfer of control Point in time $ 30,174,000 722,000 $ 30,896,000 Over time 28,759,000 56,145,000 84,904,000 Total $ 58,933,000 56,867,000 $ 115,800,000 Three months ended October 31, 2023 Satellite and Space Communications Terrestrial and Wireless Networks Total Geographical region and customer type U.S. government $ 53,006,000 596,000 $ 53,602,000 Domestic 15,952,000 45,190,000 61,142,000 Total United States 68,958,000 45,786,000 114,744,000 International 33,430,000 3,737,000 37,167,000 Total $ 102,388,000 49,523,000 $ 151,911,000 Contract type Firm fixed-price $ 85,408,000 49,523,000 $ 134,931,000 Cost reimbursable 16,980,000 — 16,980,000 Total $ 102,388,000 49,523,000 $ 151,911,000 Transfer of control Point in time $ 45,741,000 647,000 $ 46,388,000 Over time 56,647,000 48,876,000 105,523,000 Total $ 102,388,000 49,523,000 $ 151,911,000

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Oct. 31, 2024
Earnings Per Share [Abstract]
Schedule of numerators and denominators used in basic and diluted EPS calculations	The following table reconciles the numerators and denominators used in the basic and diluted EPS calculations: Three months ended October 31, 2024 2023 Numerator: Net loss $ (148,407,000) (1,437,000) Gain on extinguishment of convertible preferred stock 51,179,000 — Dividend on convertible preferred stock (58,634,000) (1,823,000) Net loss attributable to common stockholders $ (155,862,000) (3,260,000) Denominator: Denominator for basic and diluted calculation 29,446,000 28,745,000

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Oct. 31, 2024
Receivables [Abstract]
Accounts receivable	Accounts receivable consist of the following at: October 31, 2024 July 31, 2024 Receivables from commercial and international customers $ 56,824,000 53,108,000 Unbilled receivables from commercial and international customers 73,896,000 72,540,000 Receivables from the U.S. government and its agencies 31,747,000 20,682,000 Unbilled receivables from the U.S. government and its agencies 37,772,000 51,197,000 Total accounts receivable 200,239,000 197,527,000 Less allowance for doubtful accounts 19,375,000 1,932,000 Accounts receivable, net $ 180,864,000 195,595,000

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Oct. 31, 2024
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following at: October 31, 2024 July 31, 2024 Raw materials and components $ 74,920,000 72,820,000 Work-in-process and finished goods 37,330,000 38,587,000 Total inventories 112,250,000 111,407,000 Less reserve for excess and obsolete inventories 30,446,000 18,271,000 Inventories, net $ 81,804,000 93,136,000

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Oct. 31, 2024
Payables and Accruals [Abstract]
Accrued expenses and other current liabilities	Accrued expenses and other current liabilities consist of the following at: October 31, 2024 July 31, 2024 Accrued wages and benefits $ 18,612,000 22,131,000 Accrued contract costs 11,498,000 17,267,000 Accrued warranty obligations 7,849,000 7,049,000 Accrued commissions and royalties 5,243,000 5,396,000 Accrued legal costs 3,491,000 3,092,000 Other 9,691,000 7,310,000 Accrued expenses and other current liabilities $ 56,384,000 62,245,000
Product warranty rollforward	Changes in our accrued warranty obligations during the three months ended October 31, 2024 and 2023 were as follows: Three months ended October 31, 2024 2023 Balance at beginning of period $ 7,049,000 8,285,000 Provision for warranty obligations 1,168,000 1,694,000 Charges incurred (368,000) (311,000) PST Divestiture — (418,000) Balance at end of period $ 7,849,000 9,250,000

Credit Facility (Tables)

Credit Facility (Tables)	3 Months Ended
	Oct. 31, 2024
Line of Credit Facility [Abstract]
Schedule of Line of Credit Facilities	The amount outstanding under our Credit Facility was as follows: October 31, 2024 July 31, 2024 Term Loan $ 166,995,000 $ 161,663,000 Less unamortized deferred financing costs related to Term Loan 6,181,000 6,425,000 Less unamortized discount related to Term Loan 15,926,000 13,202,000 Term Loan, net 144,888,000 142,036,000 Revolving Loan 32,500,000 32,500,000 Embedded derivative related to Credit Facility 4,992,000 3,041,000 Amount outstanding under Credit Facility, net $ 182,380,000 177,577,000 Less current portion of credit facility, net 182,380,000 4,050,000 Non-current portion of credit facility, net $ — $ 173,527,000 The following table presents a reconciliation of the amount understanding under the Subordinated Credit Facility to its net carrying value: October 31, 2024 Subordinated Credit Facility $ 25,000,000 Less: Unamortized deferred financing costs 1,740,000 Less: Unamortized discount 3,284,000 Accretion of Make-Whole Amount 193,000 Subordinated Credit Facility, net - subtotal 20,169,000 Plus: Embedded derivative related to redemption features 3,566,000 Amount outstanding under the Subordinated Credit Facility 23,735,000 Less: Current portion of Subordinated Credit Facility, net (23,735,000) Non-current portion of Subordinated Credit Facility, net $ —

Subordinated Credit Facility (T

Subordinated Credit Facility (Tables)	3 Months Ended
	Oct. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Line of Credit Facilities	The amount outstanding under our Credit Facility was as follows: October 31, 2024 July 31, 2024 Term Loan $ 166,995,000 $ 161,663,000 Less unamortized deferred financing costs related to Term Loan 6,181,000 6,425,000 Less unamortized discount related to Term Loan 15,926,000 13,202,000 Term Loan, net 144,888,000 142,036,000 Revolving Loan 32,500,000 32,500,000 Embedded derivative related to Credit Facility 4,992,000 3,041,000 Amount outstanding under Credit Facility, net $ 182,380,000 177,577,000 Less current portion of credit facility, net 182,380,000 4,050,000 Non-current portion of credit facility, net $ — $ 173,527,000 The following table presents a reconciliation of the amount understanding under the Subordinated Credit Facility to its net carrying value: October 31, 2024 Subordinated Credit Facility $ 25,000,000 Less: Unamortized deferred financing costs 1,740,000 Less: Unamortized discount 3,284,000 Accretion of Make-Whole Amount 193,000 Subordinated Credit Facility, net - subtotal 20,169,000 Plus: Embedded derivative related to redemption features 3,566,000 Amount outstanding under the Subordinated Credit Facility 23,735,000 Less: Current portion of Subordinated Credit Facility, net (23,735,000) Non-current portion of Subordinated Credit Facility, net $ —

Leases (Tables)

Leases (Tables)	3 Months Ended
	Oct. 31, 2024
Leases [Abstract]
Components of lease expense and additional information	The components of lease expense are as follows: Three months ended October 31, 2024 2023 Operating lease expense 1,914,000 2,258,000 Short-term lease expense 32,000 108,000 Variable lease expense 1,177,000 1,029,000 Sublease income (17,000) (17,000) Total lease expense $ 3,106,000 3,378,000 Additional information related to leases is as follows: Three months ended October 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating leases - Operating cash outflows $ 2,130,000 $ 2,319,000 ROU assets obtained in the exchange for lease liabilities (non-cash): Operating leases $ — $ 20,000
Future cash flows relating to operating lease liabilities	The following table is a reconciliation of future cash flows relating to operating lease liabilities presented on our Condensed Consolidated Balance Sheet as of October 31, 2024: Remainder of fiscal 2025 $ 6,149,000 Fiscal 2026 6,868,000 Fiscal 2027 4,766,000 Fiscal 2028 4,028,000 Fiscal 2029 3,376,000 Thereafter 16,435,000 Total future undiscounted cash flows 41,622,000 Less: Present value discount 5,251,000 Lease liabilities $ 36,371,000 Weighted-average remaining lease terms (in years) 7.76 Weighted-average discount rate 3.45%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Oct. 31, 2024
Share-Based Payment Arrangement [Abstract]
Summary of stock-based awards outstanding by award type	As of October 31, 2024, the following stock-based awards, by award type, were outstanding: October 31, 2024 Stock options 141,190 Performance shares 876,199 RSUs, restricted stock, share units and other stock-based awards 1,745,764 Total 2,763,153
Stock-based compensation for awards detailing where recorded in Consolidated Statement of Operations	Stock-based compensation for awards issued is reflected in the following line items in our Condensed Consolidated Statements of Operations : Three months ended October 31, 2024 2023 Cost of sales $ 104,000 282,000 Selling, general and administrative expenses (14,000) 2,176,000 Research and development expenses 65,000 187,000 Stock-based compensation expense before income tax benefit 155,000 2,645,000 Estimated income tax benefit (20,000) (584,000) Net stock-based compensation expense $ 135,000 2,061,000
Summary of stock-based compensation expense by award type	Stock-based compensation expense, by award type, is summarized as follows: Three months ended October 31, 2024 2023 Stock options $ 17,000 19,000 Performance shares (397,000) 357,000 RSUs, restricted stock and share units 521,000 2,244,000 ESPP 14,000 25,000 Stock-based compensation expense before income tax benefit 155,000 2,645,000 Estimated income tax benefit (20,000) (584,000) Net stock-based compensation expense $ 135,000 2,061,000
Summary of the Plan's activity relating to stock options	The following table summarizes the Plan's activity: Awards Weighted Average Weighted Average Aggregate Outstanding at July 31, 2024 141,190 $ 20.61 Outstanding at October 31, 2024 141,190 $ 20.61 4.26 $ — Exercisable at October 31, 2024 129,840 $ 20.84 4.14 $ — Vested and expected to vest at October 31, 2024 140,315 $ 20.62 4.25 $ —
Summary of the Plan's activity relating to performance shares, RSUs, restricted stock and share units	The following table summarizes the Plan's activity relating to performance shares, RSUs, restricted stock, share units and other stock-based awards: Awards Weighted Average Aggregate Intrinsic Value Outstanding at July 31, 2024 1,800,288 $ 10.61 Granted 1,154,859 5.04 Settled (204,292) 11.26 Canceled/Forfeited (128,892) 10.61 Outstanding at October 31, 2024 2,621,963 $ 8.11 $ 9,754,000 Vested at October 31, 2024 628,254 $ 12.63 $ 2,337,000 Vested and expected to vest at October 31, 2024 2,509,221 $ 8.02 $ 9,334,000

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Oct. 31, 2024
Segment Reporting [Abstract]
Segment Information	Operating segment information, along with a reconciliation of segment net income (loss) and consolidated net loss to Adjusted EBITDA is presented in the tables below: Three months ended October 31, 2024 Satellite and Space Communications Terrestrial and Wireless Networks Unallocated Total Net sales $ 58,933,000 56,867,000 — $ 115,800,000 Operating income (loss) $ (118,807,000) 5,315,000 (15,678,000) $ (129,170,000) Net income (loss) $ (119,391,000) 5,342,000 (34,358,000) $ (148,407,000) (Benefit from ) provision for income taxes (55,000) (9,000) 2,198,000 2,134,000 Interest expense 11,000 — 9,521,000 9,532,000 Interest (income) and other 628,000 (18,000) 25,000 635,000 Write-off of deferred financing costs — — 1,412,000 1,412,000 Change in fair value of warrants and derivatives — — 5,524,000 5,524,000 Amortization of stock-based compensation — — 155,000 155,000 Amortization of intangibles 2,976,000 3,617,000 — 6,593,000 Depreciation 847,000 1,962,000 86,000 2,895,000 Impairment of long-lived assets, including goodwill 79,555,000 — — 79,555,000 Amortization of cost to fulfill assets 261,000 — — 261,000 Proxy solicitation costs — — 1,583,000 1,583,000 CEO transition costs — — 598,000 598,000 Restructuring costs 13,740,000 90,000 4,023,000 17,853,000 Strategic emerging technology costs 280,000 — — 280,000 Adjusted EBITDA $ (21,148,000) $ 10,984,000 $ (9,233,000) $ (19,397,000) Purchases of property, plant and equipment $ 50,000 2,108,000 257,000 $ 2,415,000 Total assets at October 31, 2024 $ 300,262,000 458,443,000 34,498,000 $ 793,203,000 Three months ended October 31, 2023 Satellite and Space Communications Terrestrial and Wireless Networks Unallocated Total Net sales $ 102,388,000 49,523,000 — $ 151,911,000 Operating income (loss) $ 10,105,000 4,040,000 (12,059,000) $ 2,086,000 Net income (loss) $ 9,303,000 4,145,000 (14,885,000) $ (1,437,000) Provision for (benefit from) income taxes 227,000 (300,000) (1,271,000) (1,344,000) Interest expense 872,000 — 4,060,000 4,932,000 Interest (income) and other (297,000) 195,000 37,000 (65,000) Amortization of stock-based compensation — — 2,645,000 2,645,000 Amortization of intangibles 1,672,000 3,617,000 — 5,289,000 Depreciation 954,000 1,973,000 95,000 3,022,000 Amortization of cost to fulfill assets 240,000 — — 240,000 Restructuring costs 790,000 7,000 2,919,000 3,716,000 Strategic emerging technology costs 1,370,000 — — 1,370,000 Adjusted EBITDA $ 15,131,000 9,637,000 (6,400,000) $ 18,368,000 Purchases of property, plant and equipment $ 903,000 1,736,000 577,000 $ 3,216,000 Total assets at October 31, 2023 $ 527,343,000 460,088,000 25,112,000 $ 1,012,543,000

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Oct. 31, 2024
Goodwill [Abstract]
Schedule of goodwill by segment	The following table represents goodwill by reportable operating segment as of October 31, 2024 and July 31, 2024. Satellite and Space Communications Terrestrial and Wireless Networks Total Balance as of July 31, 2024 $ 110,090,000 174,090,000 $ 284,180,000 Goodwill impairment (79,555,000) — (79,555,000) Balance as of October 31, 2024 $ 30,535,000 174,090,000 $ 204,625,000

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Oct. 31, 2024
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets with finite lives	Intangible assets with finite lives are as follows: October 31, 2024 Weighted Average Gross Carrying Accumulated Net Carrying Customer relationships 20.2 $ 294,258,000 138,168,000 $ 156,090,000 Technologies 13.6 106,149,000 82,516,000 23,633,000 Trademarks and other 16.9 31,826,000 23,314,000 8,512,000 Total $ 432,233,000 243,998,000 $ 188,235,000 July 31, 2024 Weighted Average Gross Carrying Accumulated Net Carrying Customer relationships 20.2 $ 302,058,000 141,601,000 $ 160,457,000 Technologies 14.8 113,149,000 87,809,000 25,340,000 Trademarks and other 16.7 32,926,000 23,895,000 9,031,000 Total $ 448,133,000 253,305,000 $ 194,828,000
Estimated amortization expense	The estimated amortization expense consists of the following for the fiscal years ending July 31: 2025 $ 21,722,000 2026 19,128,000 2027 17,774,000 2028 17,774,000 2029 16,353,000

Convertible Preferred Stock (Ta

Convertible Preferred Stock (Tables)	3 Months Ended
	Oct. 31, 2024
Temporary Equity Disclosure [Abstract]
Temporary Equity	The following table presents the allocation of the initial estimated fair value of the Series B-2 Convertible Preferred Stock to its host instrument and combined embedded derivatives on October 17, 2024: Initial estimated fair value of Series B-2 Convertible Preferred Stock $ 132,310,000 Initial estimated fair value and carrying value of combined embedded derivatives 38,832,000 Initial carrying value of Series B-2 Convertible Preferred Stock $ 93,478,000
Schedule of Conversions of Stock	The following table presents a reconciliation of the adjustments to increase the carrying values of the Convertible Preferred Stock to their redemption values while outstanding: Three months ended October 31, 2024 Redemption value of Series B-2 Convertible Preferred Stock at October 31, 2024 $ 187,814,000 Less: Carrying value of combined embedded derivatives at October 31, 2024 39,114,000 Carrying value of Series B-2 Convertible Preferred Stock at October 31, 2024 148,700,000 Less: Initial carrying value of Series B-2 Convertible Preferred Stock at October 17, 2024 93,478,000 Adjustment to increase carrying value of Series B-2 Convertible Preferred Stock to 55,222,000 Adjustment to increase carrying value of Series B-1 Convertible Preferred Stock to 3,412,000 Total adjustments to redemption values charged to Stockholder's Equity $ 58,634,000

General (Details)

General (Details)	3 Months Ended		12 Months Ended
	Oct. 31, 2024 USD ($)	Oct. 31, 2023 USD ($)	Jul. 31, 2024 USD ($)	Jul. 31, 2023 USD ($)	Jul. 31, 2022 USD ($)	Jan. 10, 2025 USD ($)	Oct. 17, 2024 USD ($)	Jun. 17, 2024 USD ($)	Nov. 30, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating income (loss)	$ (129,170,000)	$ 2,086,000	$ (79,890,000)	$ (14,660,000)	$ (33,752,000)
Net cash used in operating activities	21,806,000	14,545,000	54,495,000	$ 4,433,000	$ (1,997,000)
Net loss	148,407,000	1,437,000
Cash and cash equivalents	29,644,000		32,433,000
Transition costs	598,000	0
Proxy solicitation costs	1,583,000	$ 0
Proxy solicitation maximum	350,000
Assets Available for Liquidity						$ 28,500,000
Credit Facility
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Line of credit facility, maximum borrowing capacity							$ 25,000,000
Line of credit facility, term							90 days
Long-term debt	$ 182,380,000		177,577,000
Debt instruments, covenant, net leverage ratio, maximum	3.25
Minimum interest expense coverage ratio	1.20
Minimum liquidity	$ 20,000,000								$ 35,000,000
Credit Facility | Revolving Loan Facility
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Borrowings under credit facility								$ 25,000,000
Line of credit facility, maximum borrowing capacity	32,500,000						$ 27,500,000	222,000,000
Line of credit facility, current borrowing capacity	32,500,000
Long-term debt	32,500,000		$ 32,500,000
Credit Facility | Term Loan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Long-term line of credit	$ 199,495,000
Credit Facility | Unsecured Debt
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Line of credit facility, maximum borrowing capacity							$ 25,000,000
Credit Facility | Line of Credit | Revolving Loan Facility
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Borrowings under credit facility								60,000,000
Credit Facility | Line of Credit | Term Loan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Borrowings under credit facility								$ 162,000,000

Disposition - Narrative (Detail

Disposition - Narrative (Details) - USD ($)		3 Months Ended		12 Months Ended
	Nov. 07, 2023	Oct. 31, 2024	Oct. 31, 2023	Jul. 31, 2024	Jul. 31, 2023	Jul. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on disposition of business		$ (1,199,000)
Net sales		115,800,000	$ 151,911,000
Operating income (loss)		(129,170,000)	$ 2,086,000	$ (79,890,000)	$ (14,660,000)	$ (33,752,000)
Less reserve for excess and obsolete inventories		30,446,000		18,271,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Solid-State RF Microwave High Power Amplifiers and Control Components Product Line
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Divestiture preliminary purchase price	$ 35,459,000
Proceeds from divestiture	$ 33,277,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations | CGC Technology Limited
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales				4,001,000	9,969,000	11,188,000
Operating income (loss)				$ 32,331,000	$ 8,203,000	$ 9,897,000
Reversed revenue		4,157,000
Reversed contract costs		1,403,000
Restructuring charges		4,925,000
Less reserve for excess and obsolete inventories		$ 2,948,000

Revenue Recognition (Sales by G

Revenue Recognition (Sales by Geography and Customer Type) (Details) - Net sales - Geographic Concentration Risk	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Concentration Risk [Line Items]
Concentration risk, percentage	100%	100%
U.S. government
Concentration Risk [Line Items]
Concentration risk, percentage	35.40%	35.30%
Domestic
Concentration Risk [Line Items]
Concentration risk, percentage	48.40%	40.20%
Total United States
Concentration Risk [Line Items]
Concentration risk, percentage	83.80%	75.50%
International
Concentration Risk [Line Items]
Concentration risk, percentage	16.20%	24.50%

Revenue Recognition (Disaggrega

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Disaggregation of Revenue [Line Items]
Net sales	$ 115,800,000	$ 151,911,000
Point in time
Disaggregation of Revenue [Line Items]
Net sales	30,896,000	46,388,000
Over time
Disaggregation of Revenue [Line Items]
Net sales	84,904,000	105,523,000
Firm fixed-price
Disaggregation of Revenue [Line Items]
Net sales	105,128,000	134,931,000
Cost reimbursable
Disaggregation of Revenue [Line Items]
Net sales	10,672,000	16,980,000
U.S. government
Disaggregation of Revenue [Line Items]
Net sales	41,025,000	53,602,000
Domestic
Disaggregation of Revenue [Line Items]
Net sales	56,007,000	61,142,000
Total United States
Disaggregation of Revenue [Line Items]
Net sales	97,032,000	114,744,000
International
Disaggregation of Revenue [Line Items]
Net sales	18,768,000	37,167,000
Satellite and Space Communications
Disaggregation of Revenue [Line Items]
Net sales	58,933,000	102,388,000
Satellite and Space Communications | Point in time
Disaggregation of Revenue [Line Items]
Net sales	30,174,000	45,741,000
Satellite and Space Communications | Over time
Disaggregation of Revenue [Line Items]
Net sales	28,759,000	56,647,000
Satellite and Space Communications | Firm fixed-price
Disaggregation of Revenue [Line Items]
Net sales	48,261,000	85,408,000
Satellite and Space Communications | Cost reimbursable
Disaggregation of Revenue [Line Items]
Net sales	10,672,000	16,980,000
Satellite and Space Communications | U.S. government
Disaggregation of Revenue [Line Items]
Net sales	40,427,000	53,006,000
Satellite and Space Communications | Domestic
Disaggregation of Revenue [Line Items]
Net sales	4,847,000	15,952,000
Satellite and Space Communications | Total United States
Disaggregation of Revenue [Line Items]
Net sales	45,274,000	68,958,000
Satellite and Space Communications | International
Disaggregation of Revenue [Line Items]
Net sales	13,659,000	33,430,000
Terrestrial and Wireless Networks
Disaggregation of Revenue [Line Items]
Net sales	56,867,000	49,523,000
Terrestrial and Wireless Networks | Point in time
Disaggregation of Revenue [Line Items]
Net sales	722,000	647,000
Terrestrial and Wireless Networks | Over time
Disaggregation of Revenue [Line Items]
Net sales	56,145,000	48,876,000
Terrestrial and Wireless Networks | Firm fixed-price
Disaggregation of Revenue [Line Items]
Net sales	56,867,000	49,523,000
Terrestrial and Wireless Networks | Cost reimbursable
Disaggregation of Revenue [Line Items]
Net sales	0	0
Terrestrial and Wireless Networks | U.S. government
Disaggregation of Revenue [Line Items]
Net sales	598,000	596,000
Terrestrial and Wireless Networks | Domestic
Disaggregation of Revenue [Line Items]
Net sales	51,160,000	45,190,000
Terrestrial and Wireless Networks | Total United States
Disaggregation of Revenue [Line Items]
Net sales	51,758,000	45,786,000
Terrestrial and Wireless Networks | International
Disaggregation of Revenue [Line Items]
Net sales	$ 5,109,000	$ 3,737,000

Revenue Recognition (Narrative)

Revenue Recognition (Narrative) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Concentration Risk [Line Items]
Unbilled receivables, not billable	$ 18,993,000
Capitalized contract cost, impairment loss	0	$ 0
Contract liabilities	69,104,000		$ 65,834,000	$ 66,351,000
Revenue recognized	28,764,000	20,737,000
Capitalized contract cost, gross	1,165,000	$ 483,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-01
Concentration Risk [Line Items]
Remaining performance obligations, amount	$ 810,991,000
Remaining performance obligations, period	24 months

Revenue Recognition (Remaining

Revenue Recognition (Remaining Performance Obligations) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-01	Oct. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, amount	$ 810,991,000
Remaining performance obligations, period	24 months

Fair Value Measurements and F_2

Fair Value Measurements and Financial Instruments (Details)	Oct. 31, 2024
Measurement Input, Risk Free Interest Rate
Class of Stock [Line Items]
Warrants and rights outstanding, measurement input	0.042
Measurement Input, Expected Volatility
Class of Stock [Line Items]
Warrants and rights outstanding, measurement input	0.600
Measurement Input, Expected Dividend Rate
Class of Stock [Line Items]
Warrants and rights outstanding, measurement input	0
Credit Facility | Measurement Input, Exercise Price
Class of Stock [Line Items]
Warrants and rights outstanding, measurement input	0.10
Credit Facility | Measurement Input, Risk Free Interest Rate
Class of Stock [Line Items]
Warrants and rights outstanding, measurement input	0.042
Credit Facility | Measurement Input, Price Volatility
Class of Stock [Line Items]
Warrants and rights outstanding, measurement input	0.600
Credit Facility | Measurement Input, Expected Term
Class of Stock [Line Items]
Warrants and rights outstanding, measurement input	6.6

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)		3 Months Ended
	Jun. 17, 2024	Oct. 31, 2024	Oct. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Reduction in weighted average shares as a result of the repurchase of common shares (in shares)		0	0
Weighted average performance shares outstanding during the period that are excluded from EPS calculation		349,000	680,000
Numerator:
Net loss		$ (148,407,000)	$ (1,437,000)
Gain on extinguishment of convertible preferred stock		(51,179,000)	0
Dividend on convertible preferred stock		(58,634,000)	(1,823,000)
Numerator for diluted calculation		$ (155,862,000)	$ (3,260,000)
Denominator:
Denominator for basic calculation (in shares)		29,446,000	28,745,000
Denominator for diluted calculation (in shares)		29,446,000	28,745,000
Stock-based Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive equity-classified stock-based awards not included in calculation of diluted earnings per share (in shares)		986,000	1,168,000
Common Shares Related to Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive equity-classified stock-based awards not included in calculation of diluted earnings per share (in shares)	1,414,000
Common Shares Related to Business Acquisition
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive equity-classified stock-based awards not included in calculation of diluted earnings per share (in shares)			162,000
Common Shares Related to Conversion of Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive equity-classified stock-based awards not included in calculation of diluted earnings per share (in shares)		23,053,000	4,757,000

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2024	Jul. 31, 2024
Statement [Line Items]
Total accounts receivable	$ 200,239,000	$ 197,527,000
Less allowance for doubtful accounts	19,375,000	1,932,000
Accounts receivable, net	180,864,000	$ 195,595,000
Unbilled receivables, not billable	18,993,000
Cumulative earnings (deficit)	(1,551,000)
Accounts Receivable
Statement [Line Items]
Unbilled receivables, not billable	17,442,000
Modular Transportable Transmission Systems
Statement [Line Items]
Cumulative earnings (deficit)	1,004,000
CGC Divestiture
Statement [Line Items]
Unbilled receivables, not billable	3,003,000
Cumulative earnings (deficit)	4,157,000
Nonrecurring Engineering Projects
Statement [Line Items]
Unbilled receivables, not billable	1,281,000
Cumulative earnings (deficit)	$ 1,360,000
Accounts Receivable | Customer Concentration Risk | U.S. government
Statement [Line Items]
Concentration risk, percentage	34.70%	36.40%
Accounts Receivable | Customer Concentration Risk | AT&T, Inc.
Statement [Line Items]
Concentration risk, percentage	11.40%	10.90%
Accounts Receivable | Customer Concentration Risk | U.K.
Statement [Line Items]
Concentration risk, percentage	11.60%	11.30%
Billed Receivables | Commercial and International Customers
Statement [Line Items]
Total accounts receivable	$ 56,824,000	$ 53,108,000
Billed Receivables | U.S. Government and Its Agencies
Statement [Line Items]
Total accounts receivable	31,747,000	20,682,000
Unbilled Receivables
Statement [Line Items]
Long-term receivables		824,000
Unbilled Receivables | Commercial and International Customers
Statement [Line Items]
Total accounts receivable	73,896,000	72,540,000
Unbilled Receivables | U.S. Government and Its Agencies
Statement [Line Items]
Total accounts receivable	$ 37,772,000	$ 51,197,000

Inventories (Details)

Inventories (Details)	3 Months Ended
	Oct. 31, 2024 USD ($) inventory	Oct. 31, 2023 USD ($)	Jul. 31, 2024 USD ($)
Inventory [Line Items]
Raw materials and components	$ 74,920,000		$ 72,820,000
Work-in-process and finished goods	37,330,000		38,587,000
Total inventories	112,250,000		111,407,000
Less reserve for excess and obsolete inventories	30,446,000		18,271,000
Inventories, net	81,804,000		93,136,000
Inventory directly related to long-term contracts	3,021,000		2,869,000
Inventory related to contracts from third party commercial customers who outsource their manufacturing to us	2,098,000		$ 2,204,000
Provision for excess and obsolete inventory	$ 12,546,000	$ 78,000
Inventory related, number of inventory written-off | inventory	70
Inventory, Work in Process, Write-down	$ 1,082,000
Cost of sales
Inventory [Line Items]
Provision for excess and obsolete inventory	$ 11,369,000

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Components) (Details) - USD ($)	Oct. 31, 2024	Jul. 31, 2024	Oct. 31, 2023	Jul. 31, 2023
Payables and Accruals [Abstract]
Accrued wages and benefits	$ 18,612,000	$ 22,131,000
Accrued contract costs	11,498,000	17,267,000
Accrued warranty obligations	7,849,000	7,049,000	$ 9,250,000	$ 8,285,000
Accrued commissions and royalties	5,243,000	5,396,000
Accrued legal costs	3,491,000	3,092,000
Other	9,691,000	7,310,000
Accrued expenses and other current liabilities	$ 56,384,000	$ 62,245,000

Accrued Expenses and Other Cu_4

Accrued Expenses and Other Current Liabilities (Narrative) (Details)	3 Months Ended
	Oct. 31, 2024
Payables and Accruals [Abstract]
Minimum coverage period of product warranty from the date of shipment	1 year

Accrued Expenses and Other Cu_5

Accrued Expenses and Other Current Liabilities (Product Warranty Rollforward) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Changes in Product Warranty Liability
Balance at beginning of period	$ 7,049,000	$ 8,285,000
Provision for warranty obligations	1,168,000	1,694,000
Charges incurred	(368,000)	(311,000)
PST Divestiture	0	(418,000)
Balance at end of period	$ 7,849,000	$ 9,250,000

Credit Facility (Details)

Credit Facility (Details)			3 Months Ended		12 Months Ended
	Oct. 17, 2024 USD ($)	Jun. 17, 2024 USD ($) $ / shares shares	Oct. 31, 2024 USD ($) $ / shares	Oct. 31, 2023 USD ($)	Jul. 31, 2024 USD ($) $ / shares	Jul. 31, 2023	Nov. 30, 2022 USD ($)
Line of Credit Facility [Line Items]
Initial estimated fair value and carrying value of combined embedded derivatives		$ 3,116,000	$ 4,992,000		$ 3,041,000
Embedded Derivative, Gain on Embedded Derivative			1,951,000
Interest expense related to credit facility			$ 248,000
Common Stock
Line of Credit Facility [Line Items]
Share price (in dollars per share) | $ / shares			$ 3.72		$ 3.17
Terrestrial and Wireless Networks
Line of Credit Facility [Line Items]
Percentage of fair value in excess of carrying amount for reporting unit					24.70%
New Credit Facility Warrants
Line of Credit Facility [Line Items]
Warrants outstanding (in shares) | shares		1,435,884
Exercise price of warrants or rights | $ / shares		$ 0.10
Class Of Warrant Or Right, Resell Rights, Percentage		50%
Class Of Warrant Or Right, Resell Rights, Discount Percentage		10%
Class Of Warrant Or Right, Resell Rights, Volume Weighted Average Price		30 days
Warrants Not Settleable in Cash, Fair Value Disclosure		$ 3,011,000
Warrant Liability, Fair Value			$ 5,234,000		$ 4,544,000
Fair Value Adjustment of Warrants			690,000
Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000,000
Capitalized deferred financing costs		15,035,000
Total net deferred financing costs		9,979,000	8,117,000
Less: Unamortized discount		$ 5,056,000
Debt issuance cost, discount, percent		3%
Debt instrument, exit fee clause, payment		$ 2,430,000
Debt instrument, amendment fee			3,250,000
Outstanding balance during period, minimum			194,163,000
Outstanding balance during period, maximum			199,495,000
Interest expense related to credit facility			9,252,000	$ 4,910,000
Long-term debt			$ 182,380,000		177,577,000
Debt, Weighted Average Interest Rate			19%			10.50%
Line of credit facility, term	90 days
Debt instruments, covenant, net leverage ratio, maximum			3.25
Minimum interest expense coverage ratio			1.20
Minimum liquidity			$ 20,000,000				$ 35,000,000
Secured Credit Facility | Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Term Loan		$ 162,000,000
Debt instrument, amortization percent		2.50%
Debt instrument, periodic payment			4,050,000		675,000
Debt instrument, annual principal payment		$ 1,012,500
Revolving Loan Facility | Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 27,500,000	222,000,000	32,500,000
Total net deferred financing costs		3,353,000
Term Loan		25,000,000
Long-term debt			$ 32,500,000		32,500,000
Revolving Loan Facility | Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, borrowing capacity base, billed accounts receivable percentage			85%
Line of credit facility, borrowing capacity base, unbilled accounts receivable percentage			85%
Line of credit facility, borrowing capacity base, percentage of billed and unbilled receivables calculations			12.50%
Line of credit facility, borrowing capacity base, billed and unbilled receivables calculations, amount			$ 15,000,000
Line of credit facility, borrowing capacity base, percentage of inventory			60%
Remaining borrowing capacity			$ 122,999,000		114,661,000
Term Loan		$ 60,000,000
Debt instrument, unused line fee		0.50%
Debt instrument, fee payable					27,500,000
Revolving Loan Facility | Credit Facility | Line of Credit | Base Rate
Line of Credit Facility [Line Items]
Debt instrument, interest rate margin increase			1%
Revolving Loan Facility | Credit Facility | Line of Credit | Minimum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			4.75%
Revolving Loan Facility | Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate			5.75%
Revolving Loan Facility | Credit Facility | Line of Credit | Maximum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			5.25%
Revolving Loan Facility | Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate			6.25%
Term Loan A | Credit Facility
Line of Credit Facility [Line Items]
Long-term debt			$ 144,888,000		142,036,000
Unsecured Debt | Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000,000
Borrowing rate, increase	2%
Term Loan Facility | Credit Facility
Line of Credit Facility [Line Items]
Total net deferred financing costs		$ 6,626,000	6,181,000		6,425,000
Less: Unamortized discount			15,926,000		13,202,000
Term Loan			$ 166,995,000		$ 161,663,000
Term Loan Facility | Credit Facility | Line of Credit | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			12%
Term Loan Facility | Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate			13%
Term Loan Facility | Credit Facility | Line of Credit | Minimum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			7.50%
Term Loan Facility | Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate			8.50%
Term Loan Facility | Credit Facility | Line of Credit | Maximum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			9%
Term Loan Facility | Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate			10%

Credit Facility (Schedule) (Det

Credit Facility (Schedule) (Details) - USD ($)	Oct. 31, 2024	Jul. 31, 2024	Jun. 17, 2024
Line of Credit Facility [Line Items]
Less current portion of credit facility, net	$ 182,380,000	$ 4,050,000
Non-current portion of credit facility, net	0	173,527,000
Credit Facility
Line of Credit Facility [Line Items]
Less: Unamortized deferred financing costs	8,117,000		$ 9,979,000
Less: Unamortized discount			5,056,000
Amount outstanding under Credit Facility, net	182,380,000	177,577,000
Less current portion of credit facility, net	182,380,000	4,050,000
Non-current portion of credit facility, net	0	173,527,000
Credit Facility | Term Loan Facility
Line of Credit Facility [Line Items]
Term Loan	166,995,000	161,663,000
Less: Unamortized deferred financing costs	6,181,000	6,425,000	6,626,000
Less: Unamortized discount	15,926,000	13,202,000
Credit Facility | Term Loan A
Line of Credit Facility [Line Items]
Amount outstanding under Credit Facility, net	144,888,000	142,036,000
Credit Facility | Revolving Loan Facility
Line of Credit Facility [Line Items]
Term Loan			25,000,000
Less: Unamortized deferred financing costs			$ 3,353,000
Amount outstanding under Credit Facility, net	32,500,000	32,500,000
Credit Facility | Embedded Derivative Loan Facility
Line of Credit Facility [Line Items]
Amount outstanding under Credit Facility, net	$ 4,992,000	$ 3,041,000

Subordinated Credit Facility (D

Subordinated Credit Facility (Details) - USD ($)		3 Months Ended
	Oct. 17, 2024	Oct. 31, 2024	Oct. 31, 2023
Line of Credit Facility [Line Items]
Line of credit facility, derivative liability	$ 3,318,000	$ 3,566,000
Line of credit facility, noncash expense		248,000
Line of credit facility, financing fees		1,761,000
Interest expense related to credit facility		248,000
Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000,000
Line of credit facility, term	90 days
Interest expense related to credit facility		$ 9,252,000	$ 4,910,000
Unsecured Debt | Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000,000
Line of credit facility, interest rate	16%
Borrowing rate, increase	2%
Unsecured Debt | Credit Facility | First Anniversary
Line of Credit Facility [Line Items]
Line of credit facility, interest rate	33%
Unsecured Debt | Credit Facility | Second Anniversary
Line of Credit Facility [Line Items]
Line of credit facility, interest rate	50%
Unsecured Debt | Credit Facility | Third Anniversary
Line of Credit Facility [Line Items]
Line of credit facility, interest rate	75%

Subordinated Credit Facility -

Subordinated Credit Facility - Schedule of Line of Credit Facilities (Details) - USD ($)	Oct. 31, 2024	Jul. 31, 2024
Line of Credit Facility [Line Items]
Current portion of credit facility, net	$ (182,380,000)	$ (4,050,000)
Non-current portion of credit facility, net	0	$ 173,527,000
Subordinated Credit Facility
Line of Credit Facility [Line Items]
Amount outstanding under Credit Facility, net	23,735,000
Plus: Embedded derivative related to redemption features	3,566,000
Current portion of credit facility, net	(23,735,000)
Non-current portion of credit facility, net	0
Subordinated Credit Facility | Subordinated Credit Facility
Line of Credit Facility [Line Items]
Term Loan	25,000,000
Less: Unamortized deferred financing costs	1,740,000
Less: Unamortized discount	3,284,000
Accretion of Make-Whole Amount	193,000
Amount outstanding under Credit Facility, net	$ 20,169,000

Leases (Lease Cost and Addition

Leases (Lease Cost and Additional Information) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Leases [Abstract]
Operating lease expense	$ 1,914,000	$ 2,258,000
Short-term lease expense	32,000	108,000
Variable lease expense	1,177,000	1,029,000
Sublease income	(17,000)	(17,000)
Total lease expense	3,106,000	3,378,000
Operating leases - Operating cash outflows	2,130,000	2,319,000
ROU assets obtained in the exchange for lease liabilities (non-cash): operating leases	$ 0	$ 20,000

Leases (Lease Liabilities) (Det

Leases (Lease Liabilities) (Details)	Oct. 31, 2024 USD ($)
Operating
Remainder of fiscal 2025	$ 6,149,000
Fiscal 2026	6,868,000
Fiscal 2027	4,766,000
Fiscal 2028	4,028,000
Fiscal 2029	3,376,000
Thereafter	16,435,000
Total future undiscounted cash flows	41,622,000
Less: Present value discount	5,251,000
Lease liabilities	$ 36,371,000
Weighted-average remaining lease terms (in years)	7 years 9 months 3 days
Weighted-average discount rate	3.45%

Leases (Narrative) (Details)

Leases (Narrative) (Details)	Oct. 31, 2024 USD ($)
Leases [Abstract]
Rent	$ 6,149,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Jul. 31, 2024
Income Tax Disclosure [Abstract]
Effective tax rate	(1.50%)	48.30%
Discrete tax expense (benefit)	$ (108,000)	$ 2,049,000
Effective tax rate, excluding discrete items	(3.80%)	122%
Unrecognized tax benefits, including interest	$ 8,681,000		$ 8,605,000
Interest accrued relating to income taxes	264,000		$ 224,000
Decrease in gross unrecognized tax benefits that is reasonably possible	$ 512,000

Stock-Based Compensation (Overv

Stock-Based Compensation (Overview) (Details) - shares		3 Months Ended
	Nov. 25, 2024	Oct. 31, 2024	Jul. 31, 2024	Dec. 31, 2023
2000 Stock Incentive Plan
Aggregate maximum number of shares of common stock which may be issued under stock option plan (in shares)		2,195,000
Stock options
Stock-Based Awards Outstanding By Award Type (In Shares)
Number of stock-based awards outstanding at period end (in shares)		141,190	141,190
2000 Stock Incentive Plan
2000 Stock Incentive Plan
Aggregate maximum number of shares of common stock which may be issued under stock option plan (in shares)		13,562,500
Aggregate net number of stock-based awards granted (in shares)		12,494,430
Aggregate number of stock based awards expired and canceled (in shares)		6,808,256
Aggregate number of stock-based awards exercised (in shares)		9,731,277
Stock-Based Awards Outstanding By Award Type (In Shares)
Number of total stock-based awards outstanding (in shares)		2,763,153
2000 Stock Incentive Plan | Stock options
2000 Stock Incentive Plan
Maximum term for grants of incentive and non-qualified stock-based awards, excluding incentive stock-based awards granted to stockholders who own more than 10% of the voting power		10 years
Percentage of a stockholder's voting power that limits the contractual term of an incentive stock-based award		10%
Maximum term for incentive stock-based awards granted to stockholders who own more than 10% of the voting power		5 years
Stock-Based Awards Outstanding By Award Type (In Shares)
Number of stock-based awards outstanding at period end (in shares)		141,190
2000 Stock Incentive Plan | Performance shares
Stock-Based Awards Outstanding By Award Type (In Shares)
Number of stock-based awards outstanding at period end (in shares)		876,199
2000 Stock Incentive Plan | RSUs and restricted stock
Stock-Based Awards Outstanding By Award Type (In Shares)
Number of stock-based awards outstanding at period end (in shares)		1,745,764
2001 Employee Stock Purchase Plan | ESPP
2001 Employee Stock Purchase Plan
Total number of common shares reserved for issuance under employee stock purchase plan (in shares)		1,300,000
Discount rate from market value, on purchase date, offered to employees participating in the Employee Stock Purchase Plan (ESPP)		85%
Total number of shares of common stock issued to employees under employee stock purchase plan and through the end of the reporting period (in shares)		1,065,585
2023 Equity and Incentive Plan
2000 Stock Incentive Plan
Aggregate maximum number of shares of common stock which may be issued under stock option plan (in shares)				1,669,683
2023 Equity and Incentive Plan | Subsequent Event
2000 Stock Incentive Plan
Number of additional shares reserved for issuance (in shares)	2,195,000

Stock-Based Compensation (Expen

Stock-Based Compensation (Expenses) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Jul. 31, 2024
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	$ 155,000	$ 2,645,000
Stock-based compensation expense before income tax benefit	155,000	2,645,000
Estimated Income tax benefit	(20,000)	(584,000)
Net stock-based compensation expense	135,000	2,061,000
Total remaining unrecognized compensation cost related to the unvested stock-based awards	9,923,000
Estimated forfeitures related to unvested stock-based awards	$ 708,000
Weighted average number of years net compensation cost is expected to be recognized over	2 years 1 month 6 days
Stock-based compensation capitalized and included in ending inventory	$ 198,000		$ 198,000
Stock options
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	$ 17,000	19,000
Number of stock-based awards outstanding at period end (in shares)	141,190		141,190
Performance shares
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	$ (397,000)	357,000
RSUs and restricted stock
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	521,000	2,244,000
ESPP
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	$ 14,000	25,000
Discount offered to employees participating in the ESPP as a percentage of market price	15%
2000 Stock Incentive Plan | Stock options
Stock-based Compensation Expenses
Number of stock-based awards outstanding at period end (in shares)	141,190
Cost of sales
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	$ 104,000	282,000
Selling, general and administrative expenses
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	(14,000)	2,176,000
Research and development expenses
Stock-based Compensation Expenses
Stock-based compensation expense before CEO transition costs	$ 65,000	$ 187,000

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock Options) (Details)				3 Months Ended
	Aug. 01, 2022	Jul. 31, 2022	Jul. 31, 2017	Oct. 31, 2024 USD ($) $ / shares shares	Oct. 31, 2023 USD ($)	Jan. 10, 2025 USD ($)	Jul. 31, 2023	Jul. 30, 2017
Weighted Average Remaining Contractual Term (Years)
Outstanding, Ending Balance				4 years 3 months 3 days
Aggregated Intrinsic Value
Outstanding, Ending Balance | $				$ 0
Additional Disclosures
Estimated forfeitures related to unrecognized compensation expense | $				$ 6,700,000
Forfeitures related to total unrecognized stock based compensation authorization pending | $						$ 2,000,000
Aggregate maximum number of shares of common stock which may be issued under stock option plan (in shares) | shares				2,195,000
Stock options
Awards (In Shares)
Outstanding, Beginning Balance (in shares) | shares				141,190
Outstanding, Ending Balance (in shares) | shares				141,190
Exercisable, Ending Balance (in shares) | shares				129,840
Vested and Expected to Vest, Ending Balance (in shares) | shares				140,315
Weighted Average Exercise Price (Per Share)
Outstanding, Beginning Balance (in dollars per share) | $ / shares				$ 20.61
Outstanding, Ending Balance (in dollars per share) | $ / shares				20.61
Exercisable, Ending Balance (in dollars per share) | $ / shares				20.84
Vested and Expected to Vest, Ending Balance (in dollars per share) | $ / shares				$ 20.62
Weighted Average Remaining Contractual Term (Years)
Exercisable, Ending Balance				4 years 1 month 20 days
Vested And Expected To Vest, Ending Balance				4 years 3 months
Aggregated Intrinsic Value
Exercisable, Ending Balance | $				$ 0
Vested and Expected to Vest, Ending Balance | $				$ 0
Additional Disclosures
Exercise price, lower range limit (in dollars per share) | $ / shares				$ 17.88
Exercise price, upper range limit (in dollars per share) | $ / shares				$ 28.35
Stock options | Maximum
Additional Disclosures
Contractual term (in years)				10 years
Stock options | Tranche Two
Additional Disclosures
Vesting period				5 years
Performance shares, RSUs, Restricted stock and share units
Additional Disclosures
Total intrinsic value relating to stock-based awards exercised during the period | $				$ 636,000	$ 2,656,000
Performance shares | Granted since fiscal 2014 | Employees
Additional Disclosures
Performance period (in years)				3 years
RSUs and restricted stock | Employees
Additional Disclosures
Vesting period	3 years	5 years
Common stock, conversion ratio (in shares)		1
RSUs and restricted stock | Non-Employee Director
Additional Disclosures
Vesting period	1 year	5 years	1 year
Common stock, conversion ratio (in shares)							1	1

Stock-Based Compensation (Perfo

Stock-Based Compensation (Performance Shares, RSUs, Restricted Stock and Share Unit Awards) (Details)				3 Months Ended
	Aug. 01, 2022	Jul. 31, 2022	Jul. 31, 2017	Oct. 31, 2024 USD ($) $ / shares shares	Oct. 31, 2023 USD ($)	Jan. 10, 2025 USD ($)	Jul. 31, 2024 USD ($)	Jul. 31, 2023	Jul. 30, 2017
Additional Disclosures
Estimated forfeitures related to unvested stock-based awards				$ 708,000
Forfeitures related to total unrecognized stock based compensation authorization pending						$ 2,000,000
Aggregate maximum number of shares of common stock which may be issued under stock option plan (in shares) | shares				2,195,000
Dividend Equivalents [Abstract]
Reversal of dividend equivalents				$ 27,000	$ 23,000
Carrying value at period end				494,139,000			$ 426,105,000
Income tax (expense) benefit from settlement of stock-based awards				$ (25,000)	(444,000)
Performance shares, RSUs, Restricted stock and share units
Awards (In Shares)
Outstanding, Beginning Balance (in shares) | shares				1,800,288
Granted (in shares) | shares				1,154,859
Settled (in shares) | shares				(204,292)
Canceled/Forfeited (in shares) | shares				(128,892)
Outstanding, Ending Balance (in shares) | shares				2,621,963
Vested, Ending Balance (in shares) | shares				628,254
Vested and Expected to Vest, Ending Balance (in shares) | shares				2,509,221
Weighted Average Grant Date Fair Value
Outstanding, Beginning Balance (in dollars per share) | $ / shares				$ 10.61
Granted (in dollars per share) | $ / shares				5.04
Settled (in dollars per share) | $ / shares				11.26
Canceled/Forfeited (in dollars per share) | $ / shares				10.61
Outstanding, Ending Balance (in dollars per share) | $ / shares				8.11
Vested, Ending Balance (in dollars per share) | $ / shares				12.63
Vested and Expected to Vest, Ending Balance (in dollars per share) | $ / shares				$ 8.02
Aggregate Intrinsic Value
Outstanding, Ending Balance				$ 9,754,000
Vested, Ending Balance				2,337,000
Vested and Expected to Vest, Ending Balance				9,334,000
Additional Disclosures
Total intrinsic value relating to fully vested stock-based awards converted during the period				$ 636,000	2,656,000
Performance shares | Employees | Granted since fiscal 2014
Additional Disclosures
Performance period (in years)				3 years
RSUs and restricted stock | Employees
Additional Disclosures
Vesting period	3 years	5 years
Common stock, conversion ratio (in shares)		1
RSUs and restricted stock | Non-Employee Director
Additional Disclosures
Vesting period	1 year	5 years	1 year
Common stock, conversion ratio (in shares)								1	1
Dividend equivalents
Dividend Equivalents [Abstract]
Reversal of dividend equivalents				$ (27,000)
Reversal of dividend equivalents					(23,000)
Paid during the period				39,000	$ 114,000
Carrying value at period end				$ 250,000			$ 316,000

Segment Information (Details)

Segment Information (Details)	3 Months Ended		12 Months Ended
	Oct. 31, 2024 USD ($) ft²	Oct. 31, 2023 USD ($)	Jul. 31, 2024 USD ($)	Jul. 31, 2023 USD ($)	Jul. 31, 2022 USD ($)
Segment Reporting Information, Profit (Loss)
Net sales	$ 115,800,000	$ 151,911,000
Operating income (loss)	(129,170,000)	2,086,000	$ (79,890,000)	$ (14,660,000)	$ (33,752,000)
Net income (loss)	(148,407,000)	(1,437,000)
Provision for (benefit from) income taxes	2,134,000	(1,344,000)
Interest expense	9,532,000	4,932,000
Interest (income) and other	635,000	(65,000)
Write-off of deferred financing costs	1,412,000	0
Change in fair value of warrants and derivatives	(5,524,000)	0
Amortization of stock-based compensation	155,000	2,645,000
Amortization of intangibles	6,593,000	5,289,000
Depreciation	2,895,000	3,022,000
Impairment of long-lived assets, including goodwill	79,555,000	0
Amortization of cost to fulfill assets	261,000	240,000
Proxy solicitation costs	1,583,000	0
CEO transition costs	598,000	0
Restructuring costs	17,853,000	3,716,000
Strategic emerging technology costs	280,000	1,370,000
Adjusted EBITDA	(19,397,000)	18,368,000
Purchases of property, plant and equipment	2,415,000	3,216,000
Total assets	793,203,000	1,012,543,000	$ 912,434,000
Cost of sales
Segment Reporting Information, Profit (Loss)
Amortization of stock-based compensation	104,000	282,000
Selling, general and administrative expenses
Segment Reporting Information, Profit (Loss)
Amortization of stock-based compensation	$ (14,000)	2,176,000
Chandler, Arizona
Segment Reporting Information, Profit (Loss)
Area of property (in sq ft) | ft²	146,000
Satellite and Space Communications
Segment Reporting Information, Profit (Loss)
Net sales	$ 58,933,000	102,388,000
Terrestrial and Wireless Networks
Segment Reporting Information, Profit (Loss)
Net sales	56,867,000	49,523,000
Satellite And Space Segment Communications | UHP
Segment Reporting Information, Profit (Loss)
Goodwill, impairment loss	79,555,000
Operating Segments | Satellite and Space Communications
Segment Reporting Information, Profit (Loss)
Net sales	58,933,000	102,388,000
Operating income (loss)	(118,807,000)	10,105,000
Net income (loss)	(119,391,000)	9,303,000
Provision for (benefit from) income taxes	(55,000)	227,000
Interest expense	11,000	872,000
Interest (income) and other	628,000	(297,000)
Amortization of stock-based compensation	0	0
Amortization of intangibles	2,976,000	1,672,000
Depreciation	847,000	954,000
Amortization of cost to fulfill assets	261,000	240,000
CEO transition costs	0
Restructuring costs	13,740,000	790,000
Strategic emerging technology costs	280,000	1,370,000
Adjusted EBITDA	(21,148,000)	15,131,000
Purchases of property, plant and equipment	50,000	903,000
Total assets	300,262,000	527,343,000
Operating Segments | Satellite and Space Communications | Cost of sales
Segment Reporting Information, Profit (Loss)
Restructuring costs	11,369,000
Operating Segments | Satellite and Space Communications | Selling, general and administrative expenses
Segment Reporting Information, Profit (Loss)
Restructuring costs	2,371,000
Operating Segments | Terrestrial and Wireless Networks
Segment Reporting Information, Profit (Loss)
Net sales	56,867,000	49,523,000
Operating income (loss)	5,315,000	4,040,000
Net income (loss)	5,342,000	4,145,000
Provision for (benefit from) income taxes	(9,000)	(300,000)
Interest expense	0	0
Interest (income) and other	(18,000)	195,000
Write-off of deferred financing costs	0
Amortization of stock-based compensation	0	0
Amortization of intangibles	3,617,000	3,617,000
Depreciation	1,962,000	1,973,000
Impairment of long-lived assets, including goodwill	0
Amortization of cost to fulfill assets	0	0
CEO transition costs	0
Restructuring costs	90,000	7,000
Strategic emerging technology costs	0	0
Adjusted EBITDA	10,984,000	9,637,000
Purchases of property, plant and equipment	2,108,000	1,736,000
Total assets	458,443,000	460,088,000
Operating Segments | Government Solutions Segment
Segment Reporting Information, Profit (Loss)
Change in fair value of warrants and derivatives	0
Proxy solicitation costs	0
Operating Segments | Commercial Solutions Segment
Segment Reporting Information, Profit (Loss)
Change in fair value of warrants and derivatives	0
Proxy solicitation costs	0
Operating Segments | Satellite And Space Segment Communications
Segment Reporting Information, Profit (Loss)
Write-off of deferred financing costs	0
Impairment of long-lived assets, including goodwill	79,555,000
Unallocated
Segment Reporting Information, Profit (Loss)
Net sales	0	0
Operating income (loss)	(15,678,000)	(12,059,000)
Net income (loss)	(34,358,000)	(14,885,000)
Provision for (benefit from) income taxes	2,198,000	(1,271,000)
Interest expense	9,521,000	4,060,000
Interest (income) and other	25,000	37,000
Write-off of deferred financing costs	1,412,000
Change in fair value of warrants and derivatives	(5,524,000)
Amortization of stock-based compensation	155,000	2,645,000
Amortization of intangibles	0	0
Depreciation	86,000	95,000
Impairment of long-lived assets, including goodwill	0
Amortization of cost to fulfill assets	0	0
Proxy solicitation costs	1,583,000
CEO transition costs	598,000
Restructuring costs	4,023,000	2,919,000
Strategic emerging technology costs	0	0
Adjusted EBITDA	(9,233,000)	(6,400,000)
Purchases of property, plant and equipment	257,000	577,000
Total assets	$ 34,498,000	$ 25,112,000

Goodwill (Details)

Goodwill (Details) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2024	Jul. 31, 2024
Goodwill [Roll Forward]
Goodwill	$ 204,625,000	$ 284,180,000
Goodwill, impaired, accumulated impairment loss	128,480,000	48,925,000
Impairment of long-term assets to be disposed of		15,600,000
Impairment of intangible assets, finite-lived	9,925,000	9,925,000
Tangible asset impairment charges		2,651,000
Other asset impairment charges		1,873,000
Operating lease, impairment loss		$ 1,151,000
Power Systems Technologies (PST)
Goodwill [Roll Forward]
Goodwill, Measurement Period Adjustment	$ (79,555,000)
Common Stock
Goodwill [Roll Forward]
Share price (in dollars per share)	$ 3.72	$ 3.17
Satellite and Space Communications
Goodwill [Roll Forward]
Goodwill	$ 30,535,000	$ 110,090,000
Satellite and Space Communications | Power Systems Technologies (PST)
Goodwill [Roll Forward]
Goodwill, Measurement Period Adjustment	(79,555,000)
Terrestrial and Wireless Networks
Goodwill [Roll Forward]
Goodwill	174,090,000	$ 174,090,000
Percentage of fair value in excess of carrying amount for reporting unit		24.70%
Terrestrial and Wireless Networks | Power Systems Technologies (PST)
Goodwill [Roll Forward]
Goodwill, Measurement Period Adjustment	0
Satellite And Space Segment Communications | UHP
Goodwill [Roll Forward]
Goodwill, impairment loss	$ 79,555,000

Intangible Assets (Intangible A

Intangible Assets (Intangible Assets with Finite Lives) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Apr. 30, 2024	Jul. 31, 2024
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 432,233,000			$ 448,133,000
Accumulated Amortization	243,998,000			253,305,000
Net Carrying Amount	188,235,000			194,828,000
Amortization of intangibles	6,593,000	$ 5,289,000
CGC Technology Limited
Finite-Lived Intangible Assets [Line Items]
Amortization of intangibles	$ 1,343,000
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	20 years 2 months 12 days		20 years 2 months 12 days
Gross Carrying Amount	$ 294,258,000			302,058,000
Accumulated Amortization	138,168,000			141,601,000
Net Carrying Amount	$ 156,090,000			160,457,000
Technologies
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	13 years 7 months 6 days		14 years 9 months 18 days
Gross Carrying Amount	$ 106,149,000			113,149,000
Accumulated Amortization	82,516,000			87,809,000
Net Carrying Amount	$ 23,633,000			25,340,000
Trademarks and other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	16 years 10 months 24 days		16 years 8 months 12 days
Gross Carrying Amount	$ 31,826,000			32,926,000
Accumulated Amortization	23,314,000			23,895,000
Net Carrying Amount	$ 8,512,000			$ 9,031,000

Intangible Assets (Estimated Am

Intangible Assets (Estimated Amortization Expense) (Details)	Oct. 31, 2024 USD ($)
Finite-Lived Intangible Assets, Net [Abstract]
2025	$ 21,722,000
2026	19,128,000
2027	17,774,000
2028	17,774,000
2029	$ 16,353,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	3 Months Ended		12 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Jul. 31, 2024
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangibles	$ 6,593,000	$ 5,289,000
Impairment of intangible assets, finite-lived	9,925,000		$ 9,925,000
CGC Technology Limited
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangibles	1,343,000
Amortization intangible assets, writeoff	$ 15,900,000

Convertible Preferred Stock (De

Convertible Preferred Stock (Details) - USD ($)						3 Months Ended		12 Months Ended
	Oct. 17, 2024	Jun. 17, 2024	Jan. 22, 2024	Dec. 13, 2023	Oct. 19, 2021	Oct. 31, 2024	Oct. 31, 2023	Jul. 31, 2024	Jul. 31, 2023
Class of Stock [Line Items]
Series A convertible preferred stock, shares authorized (in shares)						175,264		171,827
Series A convertible preferred stock, par value per share (in dollars per share)						$ 0.10		$ 0.10
Convertible preferred stock, aggregate purchase price						$ 93,479,000
Issuance of convertible preferred stock (at fair value), excluding embedded derivatives reported in Other liabilities				100,000	100,000	175,264
Warrant liability						$ 3,063,000		$ 710,000
Warrant liability, non-cash expense						2,353,000
Initial estimated fair value and carrying value of combined embedded derivatives	$ 38,832,000
Less: Carrying value of combined embedded derivatives at October 31, 2024						39,114,000
Convertible preferred stock, embedded derivatives, non-cash expense						$ 282,000
Preferred stock, par value (in dollars per share)						$ 0.10		$ 0.10
Shares issued upon conversion (in shares)			115,721.22
Expense reimbursement			$ 1,800,000
Warrant, term						5 years 6 months
Current redemption value						$ 148,700,000		$ 180,076,000
Convertible preferred stock, accrued dividends						$ 655,000		$ 1,341,000
Temporary equity, shares outstanding (in shares)						175,264	100,000	171,827	100,000
Redemption value of Series B-2 Convertible Preferred Stock at October 31, 2024						$ 187,814,000	$ 180,076,000
Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends)						(58,634,000)	$ 1,823,000
Convertible Preferred Stock
Class of Stock [Line Items]
Liquidation preference per share (in dollars per share)	$ 7.99
Series A convertible preferred stock, shares authorized (in shares)	50,000,000
Series A convertible preferred stock, par value per share (in dollars per share)					$ 0.10
Dividend rate, in cash	7.75%
Dividend rate	6.50%
Preferred stock redemption rate	50%
Stock price change period	30 days
Disposition of business, maximum fair value	$ 75,000,000
Disposition of business, maximum fair value, ca satisfaction	$ 20,000,000
Convertible Preferred Stock | IPO
Class of Stock [Line Items]
Convertible preferred stock, aggregate purchase price					$ 100,000,000
Series B Preferred Stock
Class of Stock [Line Items]
Conversion rate	150%
Shares issued and sold (in shares)			45,000
Preferred stock, par value (in dollars per share)			$ 0.10
Shares issued during period, value			$ 45,000,000
Shares issued, price per shares (usd per share)			$ 1,000
Shares, issued (in shares)			5,400
Proceeds from issuance of convertible preferred stock			$ 43,200,000
Dividend rate, percent	9%
Liquidation rate	100%
Temporary equity, shares outstanding (in shares)		166,121.22
Series A-1 Convertible Preferred Stock
Class of Stock [Line Items]
Series A convertible preferred stock, par value per share (in dollars per share)				$ 0.10
Issuance of convertible preferred stock (at fair value), excluding embedded derivatives reported in Other liabilities			100,000	100,000
Liquidation preference per share (usd per share)				$ 1,134.2
Series B-1 Convertible Preferred Stock
Class of Stock [Line Items]
Series A convertible preferred stock, par value per share (in dollars per share)		$ 0.10
Issuance of convertible preferred stock (at fair value), excluding embedded derivatives reported in Other liabilities		5,705.83
Temporary equity, stock issued during period, shares, exchanged (in shares)	171,827.05	166,121.22
Temporary equity, liquidation preference	$ 1,067.87	$ 1,036.58
Series B-2 Convertible Preferred Stock
Class of Stock [Line Items]
Issuance of convertible preferred stock (at fair value), excluding embedded derivatives reported in Other liabilities	3,436.53
Preferred stock, convertible, conversion price (in dollars per share)	$ 0.10
Convertible preferred stock, accrued dividends						655,000
Temporary equity, stock issued during period, shares, exchanged (in shares)	171,827.05
Initial estimated fair value of Series B-2 Convertible Preferred Stock	$ 132,310,000
Redemption value of Series B-2 Convertible Preferred Stock at October 31, 2024						$ 187,814,000

Convertible Preferred Stock - T

Convertible Preferred Stock - Temporary Equity (Details)	Oct. 17, 2024 USD ($)
Class of Stock [Line Items]
Initial estimated fair value and carrying value of combined embedded derivatives	$ 38,832,000
Series B-2 Convertible Preferred Stock
Class of Stock [Line Items]
Initial estimated fair value of Series B-2 Convertible Preferred Stock	132,310,000
Initial carrying value of Series B-2 Convertible Preferred Stock	$ 93,478,000

Convertible Preferred Stock - S

Convertible Preferred Stock - Schedule of Conversions of Stock (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023
Class of Stock [Line Items]
Redemption value of Series B-2 Convertible Preferred Stock at October 31, 2024	$ 187,814,000	$ 180,076,000
Less: Carrying value of combined embedded derivatives at October 31, 2024	39,114,000
Total adjustments to redemption values charged to Stockholder's Equity	58,634,000	$ (1,823,000)
Series B-2 Convertible Preferred Stock
Class of Stock [Line Items]
Redemption value of Series B-2 Convertible Preferred Stock at October 31, 2024	187,814,000
Carrying value of Series B-2 Convertible Preferred Stock at October 31, 2024	148,700,000
Less: Initial carrying value of Series B-2 Convertible Preferred Stock at October 17, 2024	93,478,000
Adjustment to increase carrying value of Series Convertible Preferred Stock to its redemption value	55,222,000
Series B-1 Convertible Preferred Stock
Class of Stock [Line Items]
Adjustment to increase carrying value of Series Convertible Preferred Stock to its redemption value	$ 3,412,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Oct. 31, 2024	Oct. 31, 2023	Jul. 13, 2022	Sep. 29, 2020
Share Repurchase Program [Line Items]
Shelf registration authorized amount			$ 200,000,000
Maximum amount authorized by the board of directors for the repurchase of shares of the company's common stock				$ 100,000,000
Treasury Stock, Shares, Acquired	0	0
Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends)	$ 58,634,000	$ 1,823,000
Additional Paid-in Capital
Share Repurchase Program [Line Items]
Adjustment to reflect redemption value of convertible preferred stock (including accrued dividends)	$ 52,255,000

Legal Proceedings and Other M_2

Legal Proceedings and Other Matters (Details) - USD ($)		3 Months Ended
	Nov. 21, 2024	Oct. 31, 2024
Subsequent Event
Other Commitments [Line Items]
Potential contingency, damages paid, value	$ 6,000,000
Potential contingency, damages to professional reputation, value	$ 35,000,000
Minimum
Other Commitments [Line Items]
Legal fees		$ 0
Maximum
Other Commitments [Line Items]
Legal fees		$ 9,000,000

Cost Reduction (Details)

Cost Reduction (Details)		2 Months Ended	3 Months Ended
	Nov. 01, 2024 USD ($)	Jan. 13, 2025	Oct. 31, 2024 USD ($)	Jan. 10, 2025 USD ($) employee	Jul. 31, 2024 USD ($) employee
Restructuring Cost and Reserve [Line Items]
Severance liability			$ 636,000		$ 1,029,000
Restructuring and related cost, number of positions eliminated, period percent			6%
Severance costs			$ 8,000,000
Severance costs paid			1,620,000
Entity Number of Employees | employee					1,676
Subsequent Event
Restructuring Cost and Reserve [Line Items]
Severance liability				$ 18,000,000
Restructuring and related cost, number of positions eliminated, period percent		7%
Severance costs	$ 1,100,000
Entity Number of Employees | employee				1,500
Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Severance costs			$ 1,227,000