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Comtech (CMTL) Unit Wins $2M Deal From Military System Integrator

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Comtech Telecommunications Corp.’s (CMTL - Free Report) subsidiary, Comtech Xicom Technology, Inc., recently clinched a deal worth $2 million for the supply of rugged and efficient Ka-band high power traveling wave tube amplifiers (TWTAs). The agreement has been inked with an unnamed military system integrator to establish best-in-class communications infrastructure.

Notably, the contract reinforces the existing business relationship with the U.S. Army and ensures a steady revenue stream for Comtech. The Ka-band TWTAs are specifically designed for the U.S. Army Satellite Communications (SATCOM) program to provide voice, data, video conferencing, Internet and high-resolution video connectivity to the military forces.

Based in Santa Clara, CA, the Comtech unit is widely recognized as the leading supplier of SATCOM uplink power amplifier. The entity caters to commercial, government and military sectors with a broad range of reliable critical communication products and solutions. These include Outdoor TWTAs, Block Upconverters, Indoor High-Power Amplifiers (HPAs) and Airborne HPAs, to name a few.

Comtech Xicom’s avant-garde amplifiers are primarily developed to function in rough environmental conditions and are available for ground-based as well as airborne mobile applications. The product line includes power levels ranging from 8 W to 3 kW in order to operate within the 2 GHz to 52 GHz spectrum. In fact, the TWTA units are compact and lightweight, facilitating streamlined service and maintenance with improved customer experience.

Notably, Comtech created a niche market for highly secure wireless solutions to defend global security and improve public safety. Customers depend on Comtech’s commercial wireless applications, which are based on innovative mobile cloud computing services like text messaging, public safety solutions, hyper-local search, workforce tracking, social applications, and telematics and navigation. Moreover, it intends to provide global field support services for military satellite communication terminals worldwide in the long haul.

Comtech currently has a Zacks Rank #3 (Hold). Its shares have gained 38.1% compared with the industry’s growth of 53.7% in the past year.

Some better-ranked stocks in the industry are Aviat Networks, Inc. (AVNW - Free Report) , Clearfield, Inc. (CLFD - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Aviat Networks delivered a trailing four-quarter earnings surprise of 57.3%, on average.

Clearfield delivered a trailing four-quarter earnings surprise of 79.8%, on average.

Motorola delivered a trailing four-quarter earnings surprise of 11.6%, on average.

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