By Connor Hart
Shares of Comtech Telecommunications jumped after the company said it will pursue a transformational strategy to become a pure-play satellite and space communications provider.
The stock gained 23% to $4.34 in early-afternoon trading Friday. Shares are down about 48% since the beginning of the year.
The telecommunications company said after the bell Thursday that its board is exploring strategic alternatives for its terrestrial and wireless networks. The company would use proceeds from a sale of those networks to simplify its capital structure and strengthen its balance sheet, it said.
Comtech is undergoing what it called portfolio-shaping initiatives by identifying opportunities to divest, as well as separating and rationalizing businesses and facilities that don't align with its new focus.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
October 18, 2024 12:30 ET (16:30 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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