Communications Systems, Inc. (JCS) experiences an increase of 5.74% in the aftermarket. However, the last trading session closed at $9.41 with an increase of 38.59%.
What’s going on?
There is no latest news seen in today’s date regarding JCS stock. Let’s dive deep into the recent news launched by the company.
JCS Declares Special Dividend
On 13th September, CSI shareholders will receive a special dividend of $3.50 per share from the company’s board of directors. The net revenues from the sale of CSI’s Transition Networks and Net2Edge businesses to Lantronix, Inc. will finance the special dividend.
Long-time CSI shareholders are aware that the CSI board of directors has been highly active in researching. They are also trying to implement strategic initiatives to create value for our shareholders over the last many years.
In the merger agreement with Pineapple Energy, the monetization of the legacy CSI companies and assets would be the company’s first focus. This return would be given both before and after the merger through special dividends.
Second Quarter Financial Results 2021
JCS reported second-quarter 2021 financial results on 13 August 2021.
- Firstly, from $9.6 million in Q2 2020 to $11.0 million in Q2 2021, consolidated sales from continuing operations grew by 14% to $11.0 million.
- Secondly, the consolidated gross profit for the second quarter of 2021 grew by 32% to $4.6 million. In Q2 2021, the gross margin grew to 41.9 percent, up from 36.1 percent in Q2 2020.
- Thirdly, in the second quarter of 2021, the consolidated operating loss from continuing operations was $1.66 million.
- Lastly, operating income for Electronics & Software was $511,000, compared to a loss of $543,000 in Q2 2020.
JCS Closes the Sale of its Transition Networks and Net2Edge Businesses to Lantronix
JCS reported on 2 August 2021 that it has finalized the sale of the Transition Networks and Net2Edge businesses. CSI received a cash payment of $24.16 million at the closure.
In addition, this figure will further match the final net working capital figure. Lantronix may also pay CSI up to $7.0 million in earnouts depending on sales milestones for the Transition Networks and Net2Edge businesses.