Comtech Awarded Contracts to Continue Support of the Blue Force Tracking Program

MELVILLE, N.Y.–(BUSINESS WIRE)– April 14, 2014–Comtech Telecommunications Corp. (Nasdaq:CMTL) announced today that its Maryland-based subsidiary, Comtech Mobile Datacom Corporation, has been awarded a three-year contract to continue to provide sustainment support for the U.S. Army’s Force XXI Battle Command Brigade and Below – Blue Force Tracking (“BFT-1″) program, a battle command real-time situational awareness and control system. In addition, the U.S. Army agreed to continue to license certain of Comtech’s intellectual property (“IP”) pursuant to a separate contract.

Under the new three-year BFT-1 sustainment contract, which has a not-to-exceed value of $38.2 million, Comtech will provide engineering services and satellite network operations on a cost-plus-fixed-fee basis and program management services on a firm-fixed-price basis. The base performance period begins April 1, 2014 and ends March 31, 2015, and the contract provides for two twelve-month option periods exercisable by the U.S. Army. The total estimated value of the base year is $13.6 million.

Comtech also entered into a new BFT-1 IP contract with a potential value of $30.0 million which enables the U.S. Army to continue to license certain of Comtech’s IP. The contract requires a $10.0 million annual license fee for a base period beginning April 1, 2014 and ending March 31, 2015 with two twelve-month option periods exercisable by the U.S. Army. If the U.S. Army exercises the two option periods and pays an aggregate of $30.0 million of annual license fees, the U.S. Army will receive a limited non-exclusive right to use Comtech’s IP after March 31, 2017 for no additional IP license fee.

The U.S. Army has placed initial funded orders of $12.5 million (including the $10.0 million annual IP license fee for the base period) under these contracts and Comtech expects to receive additional funded orders during the base year. The U.S. Army and Comtech are continuing to negotiate certain terms related to these contract awards.

Fred Kornberg, 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 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, RF microwave amplifiers and mobile data communications. 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.

PCMTL

Media:
Michael D. Porcelain, Senior Vice President and Chief Financial Officer
(631) 962-7000
Info@comtechtel.com

Source: Comtech Telecommunications Corp.