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Comtech Telecommunications Corp. Receives $102.1
Million of Movement Tracking System Orders and Provides
Comments Relating to Its Business Outlook
MELVILLE, N.Y., Apr 20, 2009 (GlobeNewswire via COMTEX
News Network) -- Comtech Telecommunications Corp. (Nasdaq:CMTL)
announced today that its Maryland-based subsidiary,
Comtech Mobile Datacom Corporation, received orders
totaling $102.1 million under its Movement Tracking
System, or MTS contract, with the U.S. Army. Total
orders received to date against the $605.1 million
MTS contract increased to $529.1 million.
The $102.1 million of orders includes approximately
$97.2 million for the supply of MTS V2 systems, which
feature Comtech's Model MT-2012 mobile satellite transceivers
integrated with a newly upgraded ruggedized tablet
computer, installation kits, technical support, engineering
services and user training. These orders also include
satellite network bandwidth for Afghanistan-related
operations. Comtech's Model MT-2012 mobile satellite
transceiver features Savi Technology's ISO-compliant
EchoPoint RFID Reader, as well as secure Global Positioning
System (GPS) capabilities. Almost all of these deliveries
are expected to commence in Comtech's fiscal 2010.
A substantial portion of these orders include newly
upgraded ruggedized tablet computers that are manufactured
by a third-party vendor and, as such, the margin profile
is expected to be significantly lower than historical
MTS orders that included a different ruggedized computer.
Separately, the Company received a $4.9 million order
under its MTS contract for ruggedized laptop computers
and related accessories that were immediately shipped
to address operational needs in Afghanistan.
Fred Kornberg, President and Chief Executive Officer
of Comtech Telecommunications Corp., said, "The
receipt of these orders, the majority of which was
unexpected, is certainly a pleasant surprise. These
orders affirm our belief that demand for our mobile
data communications segment's products and services
has never been stronger and that the military continues
to view our equipment and services as critical to meeting
operational requirements."
Mr. Kornberg added, "Although this order provides
tangible evidence that fiscal 2010 will be better than
we thought just a few short weeks ago, we continue
to take a cautious and realistic approach as we look
to fiscal 2010. Our commercial markets remain challenging
and soft; however, I have no doubt that all three of
our business segments will continue to build upon their
existing leadership positions during these extraordinary
economic times. Because the Company has just initiated
its annual business planning process, we intend to
provide updated and specific fiscal 2010 revenue and
EPS guidance, as we normally do, during our year-end
conference call which is currently expected to occur
in September 2009."
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
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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