Why Comtech Telecommunications Shares Are Falling On Wednesday?

Comtech Telecommunications (CMTL) shares fell 11.04% on Wednesday following the announcement of plans to sell most of its Satellite and Space Communications segment to Gilat Satellite Networks (GILT) for $157.5 million. The company will receive approximately $143-145 million in net proceeds to reduce debt. Despite beating earnings estimates on loss per share, Comtech missed revenue expectations and reported a widened operating loss, though it maintained positive operating cash flow for the fifth consecutive quarter.