Communications Systems, Inc. Reports Second Quarter 2020 Financial Results
Summary
As we have highlighted in prior press releases and at our 2020 annual shareholder meeting, we are pointing the company toward growth markets with intelligent edge product solutions and services. Initially the Electronics & Software segment will include our Intelligent Edge Solutions (IES) and Traditional products and therefore our Transition Networks and Net2Edge entities. At the end of 2020 Q2, however, in light of the uncertainty due to the effects of the continuing COVID-19 pandemic, we implemented several cost reduction measures that we expect will result in more than $500,000 of savings in the second half of 2020. This includes identifying attractive M&A opportunities that could substantially increase CSI’s market share, geographic footprint, and client base or that offer niche products and services and could be tucked-in to CSI’s existing business segments. The Company expects to record additional severance and employee benefit costs in Q3 2020 as it completes its obligations under a transition services agreement with the buyer.