KORE Reschedules Third Quarter 2024 Financial Results and Live Webcast

Rhea-AI Summary

KORE Group Holdings (NYSE: KORE) announced the rescheduling of its Q3 2024 financial results release and webcast from November 13 to November 19, 2024, at 5PM ET. The company will restate its Q2 2024 financial statements due to errors in computing a non-cash goodwill impairment charge. The restatement is not expected to impact revenues, cash flows, or Adjusted EBITDA for the affected period. KORE plans to file a Form 10-Q/A with restated unaudited condensed consolidated financial statements by November 19, 2024.

Positive

• No impact expected on revenues, cash flows, or Adjusted EBITDA from the restatement

Negative

• Q2 2024 financial statements require restatement due to goodwill impairment calculation errors
• Delay in Q3 2024 financial results release

Insights

Financial Analyst

The restatement of Q2 2024 financials due to errors in goodwill impairment calculations warrants attention, though the impact appears contained. The key reassuring factor is that there's no expected impact on revenues, cash flows, or Adjusted EBITDA - the core operational metrics remain unchanged.

Goodwill impairment is a non-cash accounting adjustment that reflects the write-down of intangible assets when their carrying value exceeds fair value. While such restatements can signal internal control weaknesses, the scope of this correction and involvement of both the Audit Committee and BDO USA suggests proper oversight and transparency in addressing the issue.

For a small-cap company ($37.8M market cap), maintaining accurate financial reporting is important for investor confidence. The week-long delay in Q3 results, while not ideal, demonstrates prudent management ensuring accurate reporting rather than rushing to meet the original deadline.

Company to restate Second Quarter 2024 Financial Statements
No impact to Revenues, Cash Flows or Adjusted EBITDA expected for the period affected

ATLANTA, Nov. 12, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE: KORE) ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler, and provider of IoT Connectivity, Solutions and Analytics announced that it expects to restate its second quarter 2024 financial statements and, as a result, is rescheduling the release of the Company's financial results for the third quarter of 2024 and live webcast to discuss those results from previously scheduled November 13, 2024 at 5PM ET to November 19, 2024 at the same time.

The Company's management, in consultation with the Audit Committee of the Company's Board of Directors and in consultation with BDO USA, P.C., the Company's independent registered public accounting firm, concluded that the Company's previously issued unaudited condensed consolidated financial statements contained within the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 should no longer be relied upon due to errors in computing a non-cash goodwill impairment charge. The restatement is not expected to have any impact on the Company's revenues, cash flows or Adjusted EBITDA for the period affected.

The Company intends to file a Form 10-Q/A for the quarter ended June 30, 2024, which will include restated unaudited condensed consolidated financial statements by November 19, 2024.

KORE will also now release its third quarter 2024 financial results on November 19, 2024, following the U.S. market closing. KORE will also host a live webcast, followed by a question-and-answer period the same day at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss the financial results. The delay is to allow KORE additional time to complete the review of the financial statements to be included in the Company's Form 10-Q for the quarter ended September 30, 2024 and to complete the restated financial statements to be included in the Company's Form 10-Q/A for the quarter ended June 30, 2024.

Date: November 19, 2024
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Webcast Event: Link

U.S. dial-in: (877) 407-3039
International dial-in: (215) 268-9922
Conference ID: 13749781

About KORE

KORE is a pioneer, leader, and trusted advisor delivering mission-critical IoT solutions and services. We empower organizations of all sizes to improve operational and business results by simplifying the complexity of IoT. Our deep IoT knowledge and experience, global reach, purpose-built solutions, and deployment agility accelerate and materially impact our customers' business outcomes. For more information, visit www.korewireless.com.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") can be identified by the use of forward-looking terminology including "may," "should," "could," "likely," "will," "believe," "expect," "anticipate," "estimate," "continue," "plan," "intend," "project," or other similar words. All statements, other than statements of historical fact included in this earnings release are forward-looking statements. The forward-looking statements include statements regarding the anticipated timing of finalizing KORE's Form 10-Q for the quarter ended September 30, 2024 and Form 10-Q/A for the quarter ended June 30, 2024, the impact of the restatement of the Company's financial statements for the quarter ended June 30, 2024, and the timing of the earnings release and webcast. Although we believe that the expectations reflected in such forward-looking statements are reasonable, KORE cannot give any assurance that such expectations will prove correct.

The forward-looking statements in this press release are subject to the risk factors and cautionary language described from time to time in the reports the Company files with the U.S. Securities and Exchange Commission, including those in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2023 and any updates thereto in the Company's Quarterly Reports on Form 10-Q. It is not possible for the Company to predict all risks, nor can KORE assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements speak only as of the date of this press release. Unless required by law, KORE disclaims any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise.

KORE Investor Contact:
Vik Vijayvergiya
Vice President, IR and Corporate Development
vvijayvergiya@korewireless.com
+1-770-280-0324

KORE Media Contact:
Carla Deisenroth
Vice President, Strategy & Marketing
cdeisenroth@korewireless.com
+1-248-982-2759

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SOURCE KORE Group Holdings, Inc.

FAQ

Why is KORE (NYSE: KORE) restating its Q2 2024 financial statements?

KORE is restating its Q2 2024 financial statements due to errors in computing a non-cash goodwill impairment charge.

When will KORE release its Q3 2024 financial results?

KORE will release its Q3 2024 financial results on November 19, 2024, after U.S. market closing, followed by a webcast at 5:00 PM ET.

Will the Q2 2024 restatement affect KORE's revenues and cash flows?

No, the restatement is not expected to impact KORE's revenues, cash flows, or Adjusted EBITDA for the period affected.