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Comtech Telecommunications Corp. Receives $282.0
Million Movement Tracking System Order — Largest Single
Order in Company History
MELVILLE, N.Y., Jan 5, 2009 (GlobeNewswire via COMTEX
News Network) -- Comtech Telecommunications Corp. (Nasdaq:CMTL)
announced today that its Maryland-based subsidiary,
Comtech Mobile Datacom Corporation, received an order
for $282.0 million under its Movement Tracking System,
or MTS contract, with the U.S. Army. This order is
the largest single order in Comtech's history. Total
orders received to date against the Company's $605.1
million IDIQ MTS contract increased to $426.2 million.
The order is for the supply of newly upgraded ruggedized
computers including ruggedized keyboards, docking stations,
interface cables and base plates, all of which are
expected to be integrated into previously deployed
MTS systems. The newly upgraded ruggedized computer
is manufactured by a third-party vendor.
Based on the timing of the availability of the third-party
computer, and a preliminary delivery schedule provided
to us by the U.S. Army, we do not expect to begin deliveries,
relating to this order, until the latter part of our
fourth quarter of fiscal 2009. As a result of the aforementioned,
and based on discussions with the U.S. Army, our consolidated
operating results will be impacted by the shifting
of approximately $110.0 million to $120.0 million of
revenue, originally anticipated to be recognized in
fiscal 2009, into fiscal 2010. Comtech will provide
updated consolidated revenue and EPS guidance as part
of our regular second quarter earnings call in March
2009.
Fred Kornberg, President and Chief Executive Officer
of Comtech Telecommunications Corp., said, "The
largest order in Comtech's history is a testament to
the MTS program's established value to the U.S. Army's
logistics mission. We believe there are a number of
opportunities for new MTS transceiver deployments for
possible emerging Afghanistan area operational requirements
and other requirements by the U.S. Army and Army National
Guard."
Mr. Kornberg added, "We are experiencing good
business momentum as we look to fiscal 2010 and our
business remains strong as we continue to benefit from
our market-leading positions in all three of our business
segments."
About Comtech
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. Comtech's Model MT-2012 Transceiver
features Savi Technology's ISO-compliant EchoPoint
RFID Reader, as well as secure Global Positioning System
(GPS) capabilities. 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
or ineffective. 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.
MEDIA CONTACTS:
Michael D. Porcelain, Senior Vice President and Chief
Financial Officer
Jerome Kapelus, Senior Vice President, Strategy and
Business Development
(631) 962-7000
Info@comtechtel.com
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