Posted October 07, 2018 07:33:13A company that makes guns and ammo for the US military has recently been in the spotlight for a $1.2 billion revenue shortfall that resulted from a lack of a stable source of cash.
The reason: Colt SAAS is a private company that sells the guns and bullets to the military, but that also buys ammunition for its own customers.
A report by Business Insider said that Colt SAas revenue in the third quarter of 2018 was down 18% from the same quarter in 2017, and that SAAS revenue had dropped by more than 50% from its peak in 2014.
That report said that SAAs revenue had fallen by more, by about 80%, compared to the same time last year.
The company has a long history of making guns for the military and has long been under investigation by the Securities and Exchange Commission (SEC).
The agency said in a statement that it is investigating the company’s “continued failure to maintain its financial position” in light of its lack of liquidity.
The report said the company was under investigation for failing to provide adequate disclosure of its financial condition and liabilities in connection with its licensing of the SAAS product line.
The company has until December 4 to respond to the SEC’s request for information, according to a statement.