Comtech Telecommunications Corp.'s (Nasdaq:CMTL) Tempe, Arizona-based subsidiary, Comtech EF Data Corp., which is part of Comtech's Commercial Solutions segment shared information regarding a $59.0 million indefinite delivery/indefinite quantity (IDIQ) contract from the U.S. Naval Warfare Systems Command. The first delivery order for $7.9 million was received and related production began immediately. The contract includes five one-year ordering periods.
The contract specified orders for Comtech EF Data's SLM-5650B Satellite Modem, SLM-5650B upgrade kits, firmware upgrades and technical support services. The SLM-5650B Satellite Modem is Comtech's latest generation modem product targeted for critical government and military applications. The SLM-5650B leverages the heritage and feature set of the SLM-5650A modem. The SLM-5650B supports backwards compatibility/inter-operability for existing SLM-5650A networks while providing enhanced performance and an expanded feature set. The commercially available modems will support satellite communications and interoperability across the Navy's platforms and shore sites.
Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp. said that this new and strategic contract is a testament to the U.S. Navy's confidence in Comtech to supply best-in-class satellite communications infrastructure solutions to support mission-critical military communications. They are delighted that they have expanded their relationship with the U.S. Navy and look forward to meeting other operational needs in the future.