Comtech Telecommunications Awarded Multi-Million Dollar Contract

Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today that its Tempe, Arizona-based subsidiary, Comtech EF Data Corp., received a contract with a potential value of approximately $29.0 million, to develop and produce the Advanced Time Division Multiple Access (TDMA) Interface Processor (ATIP) for the Space and Naval Warfare Systems Command (SPAWAR). The ATIP will replace the Navy’s legacy TDMA Interface Processor. The ATIP is a Layer-2 Ethernet bridging device that will be installed on ship, shore and submarine platforms in the Navy Multiband Terminal (NMT).

The contract includes options for development and engineering services including software design and development, test and evaluation support and sustainment support on a cost-plus basis. The contract also provides for the eventual production of the ATIP terminals at a firm-fixed price over a four year period through 2018. The total contract value, including production options, approximates $29.0 million. The Company received its first development order for $7.5 million relating to the development phase of the ATIP and funding for this order has initially been set at $4.5 million. Comtech has a long history of successfully supporting the Navy and was chosen for this competitive award because it offered the overall best value. The tasks on the $7.5 million order, if fully funded, are expected to be completed by April 2014.

Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp. commented, “We are very excited about this opportunity. Supporting the Protected MILSATCOM network is a new product area for Comtech EF Data. There is significant room for growth and innovation in this area to drive down costs and to increase capabilities for the U.S. Government. We look forward to providing the Navy the next generation ATIP devices to help expand the functionality and capabilities of their network.”

Source: Comtech Telecommunications Corp.
Date: Apr 23, 2013