|
<< Back
to Press Releases
Comtech Telecommunications Corp. Receives $67.3
Million Movement Tracking System Contract Ceiling Increase
and Provides MTS Contract Update
MELVILLE, N.Y., May 5, 2010 (GlobeNewswire
via COMTEX News Network) -- Comtech Telecommunications
Corp. (Nasdaq:CMTL) announced today that its Maryland-based
subsidiary, Comtech Mobile Datacom Corporation, received
a $67.3 million ceiling increase to its Movement Tracking
System (MTS) program contract with the U.S. Army and
that deliveries under this contract ceiling increase
can continue to be made through July 2011. The total
contract ceiling for its current MTS contract is now
$672.4 million for which Comtech has received orders
to date of $595.2 million.
Since Comtech's MTS contract
was previously near its ceiling limit, this increase
enables Comtech to continue to provide uninterrupted
satellite airtime capacity as well as communications
equipment, engineering support, worldwide installation,
network management services, training and technical
support services to the U.S. Army.
In addition to the
MTS contract ceiling increase, Comtech also announced
that its third-party supplier of new MTS ruggedized
computers and certain related accessories has met and
slightly exceeded Comtech's estimated production and
delivery schedule for its most recent quarter ended
April 30, 2010. In addition, although minor production
and technical issues remain, Comtech believes its third-party
supplier is on track to meet or slightly exceed Comtech's
estimated production and delivery schedule for the
remainder of its fiscal 2010. Comtech will provide
a more specific update during its next quarterly earnings
conference call which is anticipated to occur during
the first week of June 2010.
Fred Kornberg, President
and Chief Executive Officer of Comtech Telecommunications
Corp., said, "We
are extremely pleased to have received this MTS contract
ceiling increase which supports immediate U.S. Army
operational needs and demonstrates the continuing value
of our MTS mobile tracking hardware, network and services
to the U.S. Army. We believe this contract ceiling
increase bodes well as we look towards our fiscal 2011
and we anticipate receiving a major order against this
contract ceiling increase shortly."
Mr. Kornberg added, "With
the current contract still expiring in July 2010, we
believe that it is unlikely that the next-generation
MTS proposal process will be complete by that date.
We believe that a significant portion of this ceiling
increase will be utilized to provide the full spectrum
of solutions required to meet the MTS program's needs."
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.
PCMTL
This news release was distributed by GlobeNewswire,
www.globenewswire.com
SOURCE: Comtech Telecommunications Corp.
CONTACT: Comtech Telecommunications Corp.
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
(C) Copyright 2010 GlobeNewswire, Inc. All rights
reserved.
News Provided by COMTEX
|
