Comtech Awarded $20.0 Million in Orders to Support the U.S. Army's Blue Force Tracking Program
MELVILLE, N.Y.--(BUSINESS WIRE)--
April 25, 2016--Comtech Telecommunications Corp. (Nasdaq:CMTL) announced
today that its government solutions segment received notice that the
U.S. Army exercised Option Year 2 of the Company's three-year Blue-Force
Tracking ("BFT-1") sustainment contract and related BFT-1 Intellectual
Property license agreement and that it has been awarded initial funding
totaling $20.0 million to continue to provide sustainment support for
the U.S. Army, Program Executive Office Command, Control,
Communications-Tactical (PEO-C3T), Joint Battle Command-Platform (JBC-P)
BFT-1 Mission, a battle command real-time situational awareness and
control system.
The $20.0 million in funding for Option Year 2 includes $10.0 million
for the U.S. Army to continue to license certain of the Company's BFT-1
Intellectual Property, with the remaining funding designated for
engineering services and satellite network operations for which Comtech
is paid on a cost-plus-fixed-fee basis and program management services
for which Comtech is paid on a firm-fixed-price basis. The Option Year 2
performance period began April 1, 2016 and ends March 31, 2017. The
Company expects to receive additional funded orders for Option Year 2.
The Company's three-year BFT-1 sustainment contract and related BFT-1
Intellectual Property license agreement, both of which were first
awarded in April 2014, now have a combined not-to-exceed value of $71.2
million. Total funding received to-date for both contracts approximates
$69.3 million. With this exercise of Option Year 2 of the Intellectual
Property license agreement for $10.0 million, which covers the period
April 1, 2016 through March 31, 2017, the U.S. Army will receive a
limited non-exclusive right to use certain of Comtech's intellectual
property for no additional intellectual property license fee.
Dr. Stanton Sloane, President and Chief Executive Officer of Comtech
Telecommunications Corp., said, "We are pleased that Comtech and the
U.S. Army will continue to work together to sustain this critical
worldwide military communications system. The receipt of these contracts
further demonstrates the ongoing importance of the U.S. Army's BFT-1
satellite tracking communication system."
Comtech Telecommunications Corp. designs, develops, produces and markets
innovative products, systems and services for advanced communications
solutions. The Company sells products to a diverse customer base in the
global commercial and government communications markets. The Company
believes it is a leader in most of the market segments that it serves.
Certain information in this press release contains statements that are
forward-looking in nature and involve certain significant risks and
uncertainties. Actual results could differ materially from such
forward-looking information. The Company's Securities and Exchange
Commission filings identify many such risks and uncertainties. Any
forward-looking information in this press release is qualified in its
entirety by the risks and uncertainties described in such Securities and
Exchange Commission filings.