Comtech Awarded $235.7 Million Contract from the U.S. Army

Rhea-AI Summary

On February 9, 2021, Comtech Telecommunications Corp. (CMTL) announced a contract award valued at up to $235.7 million from the U.S. Army. This contract supports ongoing refurbishments, sustainment services, and baseband equipment for the Army's AN/TSC-198 satellite terminals, including spare parts and logistics support. The initial base year award is $57.9 million, with $11.5 million funded at the outset. Comtech's Mission-Critical Technologies group continues to be a trusted partner for the Army, enhancing operational capabilities during critical missions.

Positive

• Awarded a contract valued up to $235.7 million from the U.S. Army.
• Initial funding of $11.5 million for the base year of the contract.
• Reinforces Comtech's reputation as a reliable partner for U.S. Army operations.

Negative

• None.

February 9, 2021-- Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today, that during its second quarter of fiscal year 2021, its Mission-Critical Technologies group, which is part of Comtech’s Government Solutions segment, was awarded a contract valued up to $235.7 million to provide the U.S. Army with ongoing system refurbishments, sustainment services and baseband equipment. This effort will support the sustainment of the Army’s AN/TSC-198 Secret Internet Protocol Router (“SIPR”) and Non-secure Internet Protocol Router (“NIPR”) Access Point (“SNAP”) family of ground satellite terminals, to include spare parts, repairs, upgrades, refurbishments, logistics and engineering services, and training.

The total contract value includes a base year award and three one-year option periods exercisable by the U.S. Army. The $57.9 million base year award ceiling has been initially funded $11.5 million by the U.S. Army, with additional funding expected to occur over the remaining base year performance period.

“Comtech is honored to remain the U.S. Army’s trusted partner in providing refurbishments, sustainment services and baseband equipment. We are pleased that we have won this competitive solicitation, further reinforcing our legacy of supporting the U.S. Army,” said Fred Kornberg, Chairman of the Board and Chief Executive Officer of Comtech Telecommunications Corp.

The Mission-Critical Technologies group is focused on ensuring its customers are able to successfully carry out their mission, whether that be communicating in an austere environment on land or at sea, launching or tracking a satellite, or protecting the cyber security posture of their network.

Comtech Telecommunications Corp. designs, develops, produces, and markets innovative products, systems, and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210209005286/en/

FAQ

What is the value of Comtech's contract with the U.S. Army?

Comtech's contract with the U.S. Army is valued at up to $235.7 million.

What services will Comtech provide under its new contract?

Comtech will provide system refurbishments, sustainment services, and baseband equipment.

When was the contract awarded to Comtech by the U.S. Army?

The contract was announced on February 9, 2021.

How much was initially funded for the base year of the contract?

The initial funding for the base year is $11.5 million.

What is the base year award ceiling for the contract?

The base year award ceiling is $57.9 million.