Comtech Definitizes $23.5 Million Contract for Satellite-based Tracking and Messaging Systems
MELVILLE, N.Y., Feb 18, 2003 (BUSINESS WIRE) --
Comtech Telecommunications Corp. (Nasdaq: CMTL) announced today the definitization of a contract with a major U.S. prime contractor for satellite-based location tracking and messaging systems and services. The $23.5 million contract, which was awarded to the Company's Maryland-based subsidiary, Comtech Mobile Datacom Corp., involves the integration of Comtech's mobile terminal transceivers into the prime's command and control systems that will provide terrestrial line-of-sight and satellite capability for messaging and position reporting to the U.S. Army. Comtech's efforts include the supply of mobile terminal transceivers, the lease of satellite capacity, operation of the satellite packet data network, and associated systems support and maintenance. Comtech has been working on this project since October 2002 pursuant to a letter subcontract. Performance will continue through February 2004.
The terminals used in this application are similar to those that Comtech provides to the Army Logistics Command pursuant to its multi-year Movement Tracking Systems (MTS) contract which has a potential value of $418 million. The network to be used for the application will engage similar hub and switch systems as are deployed for the MTS program. Contracts for satellite capacity have been placed with commercial satellite operators to secure the necessary geographic coverage to complement Comtech's existing coverage of North America, and the services over these systems are up and operating.
Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "This contract represents the first significant military award outside of the Army Logistics Command MTS contract. We will continue to pursue other opportunities for battle command applications."
Comtech Mobile Datacom Corp., a Germantown, Maryland-based company, is engaged in the provision of satellite-based packet data communication systems and location and messaging services for the land transportation, remote sensing, utility and aviation markets. To learn more about Comtech Mobile Datacom, please visit the company's website at www.comtechmobile.com.
Comtech Telecommunications Corp. is an innovative player in domestic and global high-technology markets. Through its operating units, Comtech pursues opportunities in three interrelated market segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications services. In each of these segments, growth has been driven by increasing demand for telecommunications infrastructure and network and messaging services. The Company's specialties include the design and manufacture of advanced products and networks used for transmission of voice, data and video using satellite, over-the-horizon microwave, terrestrial line-of-sight and other wireless communications systems. More than 275 distinct Comtech products are in service in more than 100 countries.
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.
Comtech Telecommunications Corp.
Fred Kornberg, President and Chief Executive Officer
Robert G. Rouse, Chief Financial Officer
(c) 2003 Business Wire. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission.