MELVILLE, N.Y.--(BUSINESS WIRE)--April 22, 2013--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.”
Comtech EF Data Corp. is the recognized global leader in satellite bandwidth efficiency and link optimization. Their advanced communication solutions encompass Advanced VSAT Solutions, Modems, RAN & WAN Optimization, Managed Bandwidth and RF products. The Company is recognized as a technology innovator, and has a reputation for exceptional product quality and reliability. The solutions enable commercial and government users to reduce OPEX/CAPEX and to increase throughput for fixed and mobile/transportable satellite-based applications. For more information, visit www.comtechefdata.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.
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