Comtech Telecommunications Corp. Receives $140.5 Million Blue Force Tracking Contract Ceiling Increase
MELVILLE, N.Y., May 13, 2010 (GlobeNewswire via COMTEX News Network) -- Comtech Telecommunications Corp. (Nasdaq:CMTL) announced today that its Maryland-based subsidiary, Comtech Mobile Datacom Corporation, received a $140.5 million ceiling increase to its existing Blue Force Tracking ("BFT") program contract with the U.S. Army. The total contract ceiling is now $384.0 million for which Comtech has received orders to date totaling $234.4 million. Comtech's existing BFT contract expires in December, 2011.
The ceiling increase enables Comtech to continue to provide BFT-1 mobile satellite transceivers, satellite bandwidth, satellite network operations, engineering services and program management support to the FBCB2-BFT program, a battle command real-time situational awareness command and control system.
Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "We are extremely pleased to receive another BFT contract ceiling increase and believe that this action is a clear signal of the critical need for our BFT solutions."
Mr. Kornberg added, "We continue to respond to the U.S. Army's competitive BFT-2 proposal process and believe that our BFT-2 solution provides the U.S. Army a unique ability to seamlessly transition from our current BFT-1 solution to our BFT-2 solution by offering a staged upgrade cycle that eliminates the risk of network disruption while minimizing the costs of operating two different networks during a challenging budget environment."
Comtech Mobile Datacom Corporation, a Germantown, Maryland-based company, is engaged in the provision of satellite-based packet data communication systems and location and messaging services through the use of advanced communication and network technology. To learn more about Comtech Mobile Datacom, please visit the company's website at www.comtechmobile.com.
Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company believes many of its solutions play a vital role in providing or enhancing communication capabilities when terrestrial communications infrastructure is unavailable, inefficient or too expensive. The Company conducts business through three complementary segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. The Company sells products to a diverse customer base in the global commercial and government communications markets. The Company believes it is a market leader in 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.