Latest news with #DefenseManpowerDataCenter
Miami Herald
23-05-2025
- Politics
- Miami Herald
US Could Reduce Troop Presence Near North Korea: WSJ
The U.S. is mulling withdrawing thousands of troops from South Korea, according to a Wall Street Journal report. Newsweek reached out to the Pentagon and South Korean embassy in the U.S. with emailed requests for comment. It would mark the first such drawdown since 2008, when Washington redeployed 12,500 troops from what was then a 40,000-strong U.S. Forces Korea. South Korea hosts the third-largest number of American troops outside the U.S.—after Japan and Germany—stationed there to help defend Seoul against threats from nuclear-armed North Korea and support regional efforts to counter an increasingly assertive China. With North-South relations at their most fraught in decades, military officials have warned a reduction could impact U.S. and allied capabilities in a conflict with Kim Jong Un's regime. Members of the Trump administration have proposed redeploying some 4,500 troops from South Korea to U.S. bases in the Indo-Pacific region, such as in Guam, the WSJ reported, citing two Pentagon officials familiar with the discussions. The officials said the proposal had not yet been brought before President Donald Trump and was still being prepared as part of an informal review of North Korea policy. There were 26,556 U.S. military personnel and Department of Defense civilians stationed in South Korea as of December 2024, according to the Pentagon's Defense Manpower Data Center. A Department of Defense spokesperson told the newspaper there were no policy announcements to be made on the matter. National Security Council spokesperson Pete Nguyen declined to comment on the potential withdrawal but said the president remains committed to North Korea's "complete denuclearization." Trump has reportedly floated the idea of reducing the U.S. military footprint in South Korea since his first term. In the lead-up to the 2024 presidential election, he complained that South Korea was not paying enough for the deployment of American troops. South Korea's defense ministry told Reuters there have been no discussions with the U.S. regarding a troop withdrawal. The WSJ report comes amid flaring tensions on the Korean Peninsula. The North continues to press forward with its nuclear weapons and ballistic missile programs, and last year formally abandoned its longstanding policy of eventual reunification with the South. Kim Jong Un's deployment of thousands of troops to support Russia's war in Ukraine has further stoked tensions. Sean King, Asia scholar and senior vice president of New York-based consultancy Park Strategies, told Newsweek: "I'm all for the U.S. defending Guam as best we can and for holding the line on the Second Island Chain, but let's hope that doesn't come at the expense of South Korea's defense." It remains to be seen whether Trump will order a significant redeployment of troops. At an April 10 Senate Armed Services Committee hearing, Indo-Pacific Command chief Admiral Samuel Paparo said that reducing the U.S. troop presence in South Korea would "inherently…reduce our ability to prevail in conflict." Army Gen. Xavier Brunson, commander of U.S. Forces Korea, said such a move would be "problematic." Related Articles DOD Responds to South Korea Troops Report: 'Not True'US Reveals Movements of Navy's Nuclear-Armed SubmarinesVideos Show US Destroyers Training To Intercept Ballistic MissilesMinuteman III vs Yars: US ICBM Passes Test Days After Russian Launch Flops 2025 NEWSWEEK DIGITAL LLC.
Yahoo
11-03-2025
- Business
- Yahoo
Telos Corp (TLSRP.PFD) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Expanding ...
Total Revenue: $26.4 million, up 11% sequentially. Security Solutions Revenue: $21.9 million, 83% of total revenue, up 20% sequentially. Secure Networks Revenue: $4.5 million, 17% of total revenue. GAAP Gross Margin: 40.3%, expanded nearly 600 basis points year over year. Cash Gross Margin: 47%, expanded nearly 900 basis points year over year. Adjusted Operating Expenses: Declined by $2.4 million sequentially. Adjusted EBITDA: Improved from a $4.2 million loss to a $200,000 loss sequentially. Cash Flow from Operations: $10.5 million outflow. Free Cash Flow: $14.8 million outflow. TSA PreCheck Enrollment Centers: Increased from 26 to 218 locations in 2024. First Quarter 2025 Revenue Guidance: $28.2 million to $30.2 million, 7% to 15% sequential growth. First Quarter 2025 Adjusted EBITDA Guidance: Loss of $1.8 million to $800,000. First Quarter 2025 Cash Flow: Expected to be positive. Warning! GuruFocus has detected 3 Warning Signs with Release Date: March 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Telos Corp ( delivered fourth quarter revenue near the top end of the guidance range, with total company revenue growing 11% sequentially. Security Solutions revenue grew 20% sequentially, contributing 83% of total company revenue, driven by significant growth in TSA PreCheck enrollments and the Defense Manpower Data Center program. GAAP gross margin expanded nearly 600 basis points year over year to 40.3%, and cash gross margin expanded nearly 900 basis points year over year to 47%, marking the highest quarter since the IPO in 2020. The company successfully expanded its TSA PreCheck program, increasing enrollment centers from 26 to 218 locations in 2024, with plans to reach 500 locations by the end of the year. Telos Corp ( expects positive cash flow from operations and positive free cash flow in the first quarter of 2025, driven by high growth programs and one-time CapEx investments. Secure Networks revenue declined sequentially as expected due to the ramp down of existing programs, contributing only 17% of total company revenue. Cash flow from operations was a $10.5 million outflow, and free cash flow was a $14.8 million outflow, reflecting a short-term buildup of working capital. The company is experiencing delays in the timing of awards from the government on single awards due to a change in administration and uncertainty around near-term priorities. Revenue recognition for the DMDC and DHS programs is impacted by the mix of third-party solutions, leading to a decrease in estimated revenue for these programs in 2025. Despite the positive outlook, the company forecasts an adjusted EBITDA loss of $1.8 million to $800,000 for the first quarter of 2025. Q: With the change in administration, how is Telos adapting to the impact on single award programs? A: John Wood, CEO, explained that while the new administration is generally positive for Telos, there are delays in single awards as the administration reviews opportunities. Telos is focusing on task orders from existing contract vehicles to mitigate this impact. Q: Can you elaborate on the revenue recognition for the DMDC and DHS programs in 2025? A: Mark Bendza, CFO, clarified that the revenue recognition is influenced by the mix of third-party content, which is more software-heavy than hardware. Software revenue may be recognized over a period, affecting first-year revenue recognition. However, cash flow benefits are expected at the time orders are filled, supporting positive cash flow projections for 2025. Q: How should we think about the current TSA PreCheck revenue given the rollout progress? A: Mark Bendza confirmed that the framework for TSA PreCheck revenue is based on the number of enrollment locations. With 218 locations, Telos is progressing towards capturing a significant share of the $200 million market, though full potential will be realized as more locations open. Q: What are the expectations for cash flow in Q1 and the full year 2025? A: Mark Bendza stated that Q1 will benefit from working capital liquidation. For the full year, even at a break-even adjusted EBITDA, Telos expects positive free cash flow due to favorable changes in working capital, with revenue breakeven for free cash flow being lower than for adjusted EBITDA. Q: Can you provide more detail on the cash flow dynamics for 2025? A: Mark Bendza explained that at a break-even adjusted EBITDA, Telos anticipates negative free cash flow of about $8 million before working capital changes. However, working capital improvements should offset this, leading to positive free cash flow for the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
