Comtech secures $26 million in defense contracts

CHANDLER, Ariz. - Comtech Telecommunications Corp. (NASDAQ: CMTL), currently valued at $50 million in market capitalization, has secured multiple sole source follow-on contracts worth over $26 million from L3Harris. These contracts will support the U.S. Air Force and U.S. Army by providing advanced modem technologies for the Anti-Jam Modem (A3M) program, which is vital for secure and reliable satellite communications in challenging environments. According to InvestingPro data, the company generated revenue of $504 million in the last twelve months, though it faces challenges with cash management and debt levels.

The A3M program is designed to deliver robust anti-jamming capabilities for military communications, ensuring uninterrupted operations across diverse geographic locations. Comtech’s modem technologies will be integrated into the A3M, enhancing the system with software-defined, secure, and resilient anti-jam SATCOM capabilities.

Ken Traub, President and CEO of Comtech, highlighted the significance of these contracts, stating they solidify the company’s position as a leading provider of A3M technologies and support the Department of Defense’s (DoD) critical protected SATCOM programs. Daniel Gizinski, President of Comtech’s Satellite & Space Communication Segment, also emphasized the trust placed in Comtech by the DoD and the unique value of their modem technologies.

The A3M modems incorporate advanced protected tactical waveforms and comply with multiple government and commercial standards, supporting the Protected Anti-jam Tactical Satellite ecosystem, which includes operations over Wideband Global Satellites and emerging Protected Tactical Satellites.

Comtech’s extensive portfolio caters to defense solutions and services, and these contracts are expected to enhance Combined Joint All Domain Command and Control operations. With a history of developing and deploying customized communications systems, Comtech serves various branches of the DoD and coalition forces.

About Comtech Telecommunications Corp., it is a global provider of satellite and space communication technologies, terrestrial and wireless network solutions, emergency services, and cloud native capabilities to commercial and government customers. For detailed insights into Comtech’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 15 additional ProTips and detailed financial metrics, including Fair Value estimates and growth projections.

This announcement is based on a press release statement and contains forward-looking information that involves risks and uncertainties, as indicated by the company’s Securities and Exchange Commission filings. Actual results may differ from those projected in the forward-looking statements.

In other recent news, Comtech Telecommunications Corp. announced the results of its Fiscal 2024 Annual Meeting of Stockholders, where all proposals were approved, including the election of six directors and the ratification of Deloitte & Touche LLP as the independent accounting firm. Comtech also reported amending its credit agreements, reducing interest rate margins on term loans, and modifying the terms of its preferred stock, including the exchange of Series B-2 Convertible Preferred Stock for Series B-3. Additionally, Comtech launched a new multipath radio platform designed to provide secure communications in challenging environments, which has been demonstrated in U.S. Department of Defense exercises.

Furthermore, Comtech appointed David B. Kagan to its Board of Directors as an independent director, bringing over 35 years of experience in the satellite communications industry. In related developments, B.Riley analysts maintained a Buy rating on Comtech’s stock, despite reducing the price target, citing the company’s intrinsic asset value as a favorable risk/reward scenario. Comtech is currently navigating financial challenges, including reclassifying $206 million of debt as a current liability and undergoing operational restructuring. The company is exploring strategic alternatives for parts of its business, including its 911 service, which has attracted interest from potential partners.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.