Comtech Receives Largest Single Order in Company History
Comtech Telecommunications Corp. announced that its Maryland-based subsidiary, Comtech Mobile Datacom Corp., received an order for $282.0 M under its Movement Tracking System, or MTS contract, with the US Army. This order is the largest single order in Comtech's history. Total orders received to date against the company's $605.1 M IDIQ MTS contract increased to $426.2 M.
The order is for the supply of newly upgraded ruggedized computers including ruggedized keyboards, docking stations, interface cables and base plates, all of which are expected to be integrated into previously deployed MTS systems. The newly upgraded ruggedized computer is manufactured by a third-party vendor.
Based on the timing of the availability of the third-party computer, and a preliminary delivery schedule provided to us by the US Army, the company does not expect to begin deliveries, relating to this order, until the latter part of our fourth quarter of fiscal 2009. As a result of the aforementioned, and based on discussions with the US Army, the company's consolidated operating results will be impacted by the shifting of approximately $110 M to $120 M of revenue, originally anticipated to be recognized in fiscal 2009, into fiscal 2010. Comtech will provide updated consolidated revenue and EPS guidance as part of the company's regular second quarter earnings call in March 2009.
Fred Kornberg, president and chief executive officer of Comtech Telecommunications Corp., said, "The largest order in Comtech's history is a testament to the MTS program's established value to the US Army's logistics mission. We believe there are a number of opportunities for new MTS transceiver deployments for possible emerging Afghanistan area operational requirements and other requirements by the US Army and Army National Guard."
Kornberg added, "We are experiencing good business momentum as we look to fiscal 2010 and our business remains strong as we continue to benefit from our market-leading positions in all three of our business segments."