Comtech Awarded Contracts to Continue Support of the Blue Force Tracking Program
April 14, 2014 at 10:00 AM EDT
MELVILLE, N.Y.--(BUSINESS WIRE)--
April 14, 2014--Comtech Telecommunications Corp. (Nasdaq:CMTL)
announced today that its Maryland-based subsidiary, Comtech Mobile
Datacom Corporation, has been awarded a three-year contract to continue
to provide sustainment support for the U.S. Army's Force XXI Battle
Command Brigade and Below - Blue Force Tracking ("BFT-1") program, a
battle command real-time situational awareness and control system. In
addition, the U.S. Army agreed to continue to license certain of
Comtech's intellectual property ("IP") pursuant to a separate contract.
Under the new three-year BFT-1 sustainment contract, which has a
not-to-exceed value of $38.2 million, Comtech will provide engineering
services and satellite network operations on a cost-plus-fixed-fee basis
and program management services on a firm-fixed-price basis. The base
performance period begins April 1, 2014 and ends March 31, 2015, and the
contract provides for two twelve-month option periods exercisable by the
U.S. Army. The total estimated value of the base year is $13.6 million.
Comtech also entered into a new BFT-1 IP contract with a potential value
of $30.0 million which enables the U.S. Army to continue to license
certain of Comtech's IP. The contract requires a $10.0 million annual
license fee for a base period beginning April 1, 2014 and ending March
31, 2015 with two twelve-month option periods exercisable by the U.S.
Army. If the U.S. Army exercises the two option periods and pays an
aggregate of $30.0 million of annual license fees, the U.S. Army will
receive a limited non-exclusive right to use Comtech's IP after March
31, 2017 for no additional IP license fee.
The U.S. Army has placed initial funded orders of $12.5 million
(including the $10.0 million annual IP license fee for the base period)
under these contracts and Comtech expects to receive additional funded
orders during the base year. The U.S. Army and Comtech are continuing to
negotiate certain terms related to these contract awards.
Fred Kornberg, President and Chief Executive Officer of Comtech
Telecommunications Corp., said, "We are pleased that Comtech and the
U.S. Army will continue to work together to sustain this critical
worldwide military communications system. The receipt of these contracts
further demonstrates the ongoing importance of the U.S. Army's BFT-1
satellite tracking communication system."
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.
Media: Michael D. Porcelain, Senior Vice President and Chief
Financial Officer (631) 962-7000 Info@comtechtel.com