CONVERGE TECH SLTN CORP - CTSDF STOCK NEWS

Converge Technology Solutions reported Q3 2024 results showing mixed performance. The company experienced a decrease in gross sales by 8.9% to $945.0 million and revenue declined 11.2% to $630.7 million. Despite challenges, year-to-date cash from operations increased by $97 million to $212.4 million. The company reduced net debt by $30 million from Q2 2024 and returned $61.7 million to shareholders year-to-date. Notable was a non-cash impairment charge of $176.1 million on the Germany segment. The company announced CEO transition with Greg Berard appointed to the Board as Shaun Maine steps down.

Converge Technology Solutions (TSX: CTS) (OTCQX: CTSDF) has been awarded Solution Partner of the Year for North America by Ingram Micro at the 2024 ONE Innovation Summit in Maryland. The award recognizes partners who have demonstrated exceptional performance across multiple solution categories and leveraged cross-solutions to create significant impact. This achievement follows Converge's previous recognitions as Cloud Reseller Partner of the Year (2020-2022), Blue Series Partner of the Year, and CORE Partner of the Year (2021), highlighting their consistent growth and ability to deliver innovative solutions alongside Ingram Micro.

Converge Technology Solutions (CTSDF) released preliminary Q3-2024 results, with revenue expected between $630.0-631.0 million, below previous guidance of $636-658 million and lower than Q3-2023's $710.1 million. Gross profit is anticipated at $158.0-158.5 million, below guidance of $172-178 million and Q3-2023's $174.1 million. Adjusted EBITDA is projected at $31.8-32.3 million, missing guidance of $43-47 million and Q3-2023's $41.3 million. The company attributes the decline to delayed project spending, lower hardware demand, and customers postponing end-user device refreshes until 2025's AI PC availability. However, cloud and software revenue showed year-over-year growth.

Converge Technology Solutions Corp. (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) has announced a conference call to discuss its third quarter fiscal 2024 results on Tuesday, November 12th, 2024 at 8:00am EST. The call will be hosted by the Converge leadership team, followed by a question-and-answer session. Financial results will be reported in the morning prior to the call.

Participants can join via webcast or dial-in with operator assistance. The conference ID is 71060. International toll-free numbers are provided for Germany, Ireland, Spain, Switzerland, and the United Kingdom. A recording playback will be available until November 19th, 2024. Presentation slides and an archive of the call will be accessible on the company's investor relations website.

Converge Technology Solutions Corp. (TSX: CTS) has joined Red Hat Partner Practice Accelerator, a specialized growth pathway for select partners with validated professional services delivery capabilities. This collaboration aims to enhance Converge's ability to deliver successful customer outcomes using Red Hat technologies and services within the commercial sector, particularly in mid-market and SMB segments.

The program focuses on enabling partners to provide critical services related to automation and application modernization, using solutions like Red Hat Ansible Automation Platform and Red Hat OpenShift. Converge's participation demonstrates its commitment to deepening capabilities and supporting customers more effectively. The collaboration is part of Red Hat's evolving partner engagement model, designed to implement a standardized, globally unified approach to collaboration.

Converge Technology Solutions Corp. (TSX: CTS) has successfully achieved PCI-DSS certification for its IBM Power for Google Cloud (IP4G) platform. IP4G is an Infrastructure as a Service (IaaS) solution available on Google Marketplace, enabling clients to run native AIX, IBM i, and Linux workloads in the Google Cloud environment. The certification validates IP4G's security and reliability, particularly for clients managing mission-critical retail, financial, and banking applications. This achievement expands Converge's addressable market within the retail and financial industries, reinforcing its commitment to providing secure and compliant industry solutions.

Converge Technology Solutions Corp. (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) has received approval from the Toronto Stock Exchange (TSX) for a Normal Course Issuer Bid (NCIB). The company can purchase up to 18,408,927 common shares for cancellation, representing 10% of its public float. The NCIB will run from August 13, 2024, to August 12, 2025. Converge believes this action reflects the underlying value of its business and future prospects. Purchases will be made on the open market at prevailing prices. The company also plans to enter an automatic share purchase plan (ASPP) with Canaccord Genuity Corp. to facilitate repurchases during blackout periods. Daily purchases are to 113,438 shares, about 25% of the average daily trading volume. Under its previous NCIB, Converge bought back 10,027,500 shares at an average price of $5.0595.

Converge Technology Solutions Corp. (TSX: CTS) (OTCQX: CTSDF) reported Q2 2024 results with gross sales of $1.06 billion, up 11.1% year-over-year. Key highlights include:

- Gross profit increased 2.1% to $179.3 million (27.5% margin)
- Adjusted EBITDA rose 8.6% to $45.1 million
- Cash from operations improved to $52.4 million
- Returned $47.4 million to shareholders via dividends and buybacks
- Reduced net debt by $194 million year-over-year to $157.9 million

The company announced a CEO transition, with Greg Berard assuming full executive responsibilities in 2025. Converge also provided Q3 and FY2024 guidance, projecting revenue of $2.62-2.66 billion and Adjusted EBITDA of $176-184 million for the full year.

Converge Technology Solutions Corp. (TSX: CTS) has announced its participation in the Canaccord Genuity 44th Annual Growth Conference in Boston, MA. This event brings together institutional investors and promising growth companies from various sectors. Shaun Maine (Group CEO), Greg Berard (CEO), and Avjit Kamboj (CFO) will participate in a fireside chat on Tuesday, August 13th, 2024, at 2:30pm ET. The chat will be broadcast live via a webcast link, with a video replay available on the company's IR website afterward. This conference provides Converge with an opportunity to showcase its growth potential to a wide range of institutional investors.