Comtech Telecommunications Corp. Receives $15.8 Million Order Modification to Complete the Funding f
Comtech Telecommunications Corp. Receives $15.8 Million Order Modification to Complete the Funding for Year 2 of BFT-1 Sustainment Services
MELVILLE, N.Y.--(BUSINESS WIRE)-- May 22, 2013 -- Comtech Telecommunications Corp. (NAS: CMTL) announced today that its Germantown, Maryland-based subsidiary, Comtech Mobile Datacom Corporation, received a $15.8 million order modification to complete the funding and ordering for Year 2 of Blue Force Tracking ("BFT-1") sustainment services for the U.S. Army. This order modification, when combined with a $5.0 million funded order previously received, is intended to fully support Year 2 of BFT-1 sustainment services at $20.8 million and includes $10.0 million for Year 2 of the annual intellectual property ("IP") license fee. The remaining Year 2 funding is to be used for various services including network operations center services and telehousing. The performance period for Year 2 began on April 1, 2013 and extends through March 31, 2014.
As previously announced, the U.S. Army has informed the Company that it ultimately intends to award and fund a separate contract to Comtech to procure future BFT-1 sustainment services (including the annual IP license fee) for performance periods beyond March 31, 2014.
Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., stated, "We are pleased that the U.S. Army has fully funded Year 2 of BFT-1 sustainment services and we are proud to continue our support to the U.S. Army to ensure this vital system remains operational for U.S. and Allied forces worldwide."
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, RF microwave amplifiers and mobile data communications. 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.
Michael D. Porcelain, Senior Vice President and Chief Financial Officer
KEYWORDS: United States North America Maryland New York
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