Comtech (CMTL) Inks Deal With Commonwealth of Massachusetts

Comtech Telecommunications CMTL recently secured a major contract for the Massachusetts’ Next Generation 911 (NG911) system.

Per the terms, the contract will have an initial life of five years from Aug 1, 2024, to Jul 31, 2029, with an additional option to extend for another five-year term through Jul 31, 2034. The total contract value (including the additional extension option) is likely to surpass $250 million.

CMTL has been associated with the state of Massachusetts since 2014 for the proper functioning of the IP-based NG911 system. The Comtech NG911 system aids in catering to emergency communications needs for the state by processing urgent service requests from existing public networks through various modes of communication and devices.

The approval of the contract by the Commonwealth of Massachusetts underscores the state’s unwavering trust in CMTL for ensuring secure public communication, added CMTL.

Based in Huntington, NY, CMTL is a leading global provider of terrestrial and wireless network solutions, along with next-generation 911 emergency services. It also offers satellite and space communications technologies and cloud-native capabilities to both commercial and government clients. It has expanded its footprint across multiple market domains from broadcast, enterprise, space, telecom to maritime, public safety and military and defense.

CMTL has been at the forefront of strategic collaborations and innovations since the beginning of 2024.

Recently, it joined forces with Eutelsat OneWeb to provide Low Earth Orbit (LEO) satellite connectivity services to various regions of Antarctica. Eutelsat OneWeb is a subsidiary of Eutelsat, which specializes in delivering Internet connectivity in LEO. Eutelsat acquired OneWeb in 2023. With the acquisition, EUTLF became a fully integrated GEO-LEO satellite operator.

CMTL also collaborated with the Arizona Department of Administration for the successful transition of the state’s flagship 911 system to the updated infrastructure of Comtech’s NG911 services.

In the last reported quarter, the company incurred a loss of 15 cents per share, missing the Zacks Consensus Estimate by 153.57%. Revenues were up roughly 0.4% year over year to $134 million. The top line fell short of the consensus estimate by 12.18%.

At present, CMTL carries a Zacks Rank #3 (Hold). The stock has lost 81.1% against the sub-industry’s rise of 54% in the past year.
 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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