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Comtech Telecommunications Corp. Receives a $226.7
Million Movement Tracking System Contract Ceiling Increase
and Performance Period Extension
MELVILLE, N.Y., Jul 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 contract modification to its Movement Tracking System
(MTS) program contract with the U.S. Army, authorizing
two (2) six-month performance period extension options
and a $226.7 million ceiling increase. The total MTS
contract ceiling is now $899.1 million. Comtech has
received orders to date of $668.7 million which includes
$47.4 million of MTS orders announced earlier today.
The first six-month performance period option was exercised
immediately, extending the ordering period out through
January 13, 2011, with deliveries and performance now
authorized to continue into January 2012.
This is the
second MTS contract ceiling increase since May 2010.
With the contract's recompete expected to be released
in the near future, the government's action ensures
that Comtech will be able 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, through the competition
period and any transition period.
Fred Kornberg, President
and Chief Executive Officer of Comtech Telecommunications
Corp., said, "We
are extremely pleased to have received this substantial
MTS contract ceiling increase, which we believe clearly
demonstrates the government's continued demand for
our hardware and services, as well as their continued
confidence in Comtech's ability to support the U.S.
Army's immediate and future operational needs."
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
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
This news release was distributed by GlobeNewswire,
SOURCE: Comtech Telecommunications Corp.
CONTACT: Comtech Telecommunications Corp.
Michael D. Porcelain, Senior Vice President
and Chief Financial Officer
Jerome Kapelus, Senior Vice President,
Strategy and Business Development
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