Comtech Telecommunications Corp. (NASDAQ: CMTL) experienced a significant pre-market plunge of 8.70% on Monday.

The sharp decline follows the company's release of its fiscal third-quarter results, which revealed a 16.4% year-over-year drop in revenue to $106.0 million, missing analyst estimates. While the adjusted loss per share of $0.22 beat expectations, the company's operating loss widened to $3.1 million from $1.5 million in the prior-year period, raising concerns about its near-term profitability.

Concurrently, Comtech announced a definitive agreement to sell the majority of its Satellite and Space Communications business segment to Gilat Satellite Networks Ltd. for $157.5 million. The company plans to use the net proceeds to reduce debt and will transition to focus on its public safety technology business, Allerium. This strategic shift is anticipated to incur $12 million to $14 million in transition costs, primarily in fiscal 2027, adding to investor uncertainty amidst the weaker-than-expected quarterly performance.