Prior FY24 revenue view $200M-$270M. Lowers FY24 adjusted EBITDA view to (45M)-(30M) from (30M)-(20M). Doran Hole, Chief Financial Officer and Executive Vice President, said: “Sequential growth in software and services revenue drove strong GAAP gross margins of 21%, and record non-GAAP gross margins of 46% in the third quarter. Revenue was negatively impacted by a $5.6 million adjustment tied to an updated valuation of certain hardware contract guarantees that we issued in 2022 and early 2023. Our bad debt expense increased sequentially by $104.1 million in the quarter, due to an impairment of accounts receivables related to certain customer contracts that provide a parent company guarantee. As a result, our net income was negatively impacted by $104.1 million. With the adjustments made this quarter, we have reduced the value of all relevant assets subject to parent company guarantees to zero on our balance sheet, and do not expect further material negative impact on our financial statements as a result of these guarantees. We are adjusting our full year 2024 guidance for several key metrics to account for our latest financial results, ongoing implementation of our new strategy and continued expectation of project delays, which continue to negatively impact our results including revenue, bookings and cash flow. We are also taking actions to right-size our operating costs to conserve cash and align with our new strategy. We are confident that the changes we are making will position the Company to drive faster, more predictable growth in high-margin revenue streams, and improved profitability in the long-term.”
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