JCS - JCS STOCK NEWS

Transition Networks has launched a new accessory for its Self-Enclosed Managed Hardened Gigabit Ethernet PoE++ Switch (SESPM) that enhances its capabilities. The new Passive PoE Module supports devices requiring 24VDC power that do not comply with IEEE PoE standards, allowing for simplified outdoor device connections like security cameras and IoT sensors. The SESPM features an IP-66 rating and offers up to 90 Watts of power across its four PoE ports. It also includes smart configuration via NFC and Bluetooth Low Energy for remote troubleshooting.

Communications Systems, Inc. (Nasdaq: JCS) has announced a $25 million private placement with institutional investors to fund its merger with Pineapple Energy. This PIPE investment involves the issuance of Series A Convertible Preferred Stock convertible at $3.40 per share, along with warrants. The funding aims to support strategic initiatives and facilitate concurrent acquisitions of Hawaii Energy Connection and E-GEAR. The financing is subject to shareholder approval. Following the merger, existing CSI shareholders are expected to receive a cash dividend of $3.50 per share from the proceeds of asset sales.

Transition Networks announced its new Secure Remote Access (SRA) solution, enhancing secure bi-directional VPN communication between network operations centers and remote sites. The SRA simplifies access management for remote network devices, eliminating complex firewall configurations. With a focus on reducing operational costs and enhancing customer satisfaction, the SRA enables real-time troubleshooting without costly technician visits. The solution comprises a Management Access Portal and a Remote Access Device that establishes a secure tunnel using advanced encryption, facilitating efficient network management.

Communications Systems, Inc. (JCS) reported Q1 2021 financial results with consolidated sales of $10.2 million, an 11% increase from Q1 2020, and a gross profit of $4.2 million, up 13%. However, the net loss was $2.2 million, or ($0.23) per share, compared to a net income of $1.5 million in the prior year. The company announced plans to sell its Electronics and Software segment to Lantronix for $25 million, which could enhance its cash position and allow for a proposed $3.50 per share dividend to shareholders. CEO Anita Kumar noted supply chain challenges due to COVID-19.

Communications Systems, Inc. (NASDAQ: JCS) announced a definitive Purchase Agreement to sell its Transition Networks and Net2Edge businesses to Lantronix for $25 million, plus potential earnouts of $7 million based on revenue milestones. This transaction, requiring shareholder approval, is expected to close in June 2021. The sale represents the majority of the Electronics & Software segment, which generated $34.5 million in revenue in 2020. Following the sale, JCS plans to distribute a cash dividend of $3.50 per share, totaling approximately $35 million to shareholders.

Communications Systems, Inc. (NASDAQ: JCS) reported a 24% decrease in Q4 2020 sales to $11.7 million, down from $15.4 million in Q4 2019. The decline resulted from lower sales in the Electronics & Software segment, impacted by project delays due to COVID-19. The consolidated operating loss was $133,000, a reversal from a $1.2 million profit in the previous year. The full-year revenue also saw a 16.4% drop to $42.6 million. Despite these challenges, the Services & Support segment reported significant growth, with a 85.1% increase in annual sales.

Ecessa Corporation has launched firmware version 12.0.0, enhancing its secure SD-WAN solutions with advanced security features. Notable updates include SSL VPN authentication, multi-factor authentication via Duo, and a geoblocking capability. These enhancements aim to bolster the company’s offerings in the Secure Access Service Edge (SASE) market, particularly addressing increased security demands due to remote work trends caused by the pandemic. The firmware upgrade is available for all new units and existing users can also upgrade their systems.

Communications Systems, Inc. (NASDAQ: JCS) has announced a definitive merger agreement with Pineapple Energy, LLC, a growing residential solar service provider. Following the merger, the combined entity will operate as Pineapple Energy and focus on the expanding home solar market. The transition is subject to shareholder approval and is expected to close in Q2 2021. Existing JCS shareholders will receive Contingent Value Rights and cash dividends from divested assets, while also retaining approximately 37% ownership in the new company. Notably, Pineapple aims to enhance its market reach through strategic acquisitions.

Transition Networks, a leader in IoT and edge connectivity solutions, announced its participation at IPVM's 2021 Virtual Networking Show on February 24, 2021. Senior Product Manager GlenNiece Kutsch will present the SESPM, an award-winning Self-Enclosed Managed Hardened Gigabit Ethernet PoE++ Switch, designed for outdoor devices like security cameras and IoT sensors. The switch simplifies deployment and maintenance, making it ideal for surveillance networks. Attendees can engage in a Q&A session moderated by IPVM to explore the switch's capabilities further.