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Comtech Wins US Navy Deal to Boost Satellite Communications

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Comtech Telecommunications Corp.’s CMTL subsidiary, Comtech EF Data Corp., which is part of its Commercial Solutions segment, has secured a $4 million deal from U.S. Naval Information Warfare Systems Command. Per the deal, the company will supply state-of-the-art satellite modems with unparalleled bandwidth efficiency and link optimization across Navy platforms and shore sites.

Also, according to the agreement received during second-quarter fiscal 2020, Comtech’s Commercial Solutions segment will continue providing maintenance and support services for various critical commercial backhaul and military applications. The contract underscores U.S. Navy’s trust in the company for offering global on-site support services for various satellite communication terminals worldwide, thereby ensuring a steady revenue stream.

Leading the market in various mission-critical technologies, Comtech’s SLM-5650B Satellite Modems are specifically designed for the U.S. Defense Satellite Communications (SATCOM) infrastructure, providing reliable and secured network connectivity to the naval forces in harsh environmental conditions. Backed by an effective network management system, the unconventional technology supports low-latency and high throughput data transmission with speeds ranging from 8 Kbps to 155 Mbps, thereby resulting in minimized power consumption.

Comtech has created a niche market for secure wireless solutions to defend global security and improve public safety. The company provides market-leading products for messaging, location services and deployable wireless communications. It offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to users.

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. Federal government agencies also rely on Comtech’s cyber security expertise, professional consulting services and highly secure deployable satellite solutions for mission-critical communications.

Backed by positive business momentum and strong backlog, the stock has rallied 42.2% compared with the industry’s 24.4% rise in the past year.

Zacks Rank & Stocks to Consider

Comtech carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader industry are America Movil, S.A.B. de C.V. AMX, BlackBerry Limited BB and Ooma, Inc. (OOMA - Free Report) . While America Movil and BlackBerry sport a Zacks Rank #1 (Strong Buy), Ooma carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

America Movil has a long-term earnings growth rate of 17.2%.

BlackBerry surpassed the Zacks Consensus Estimate twice in the preceding four quarters, the average positive earnings surprise being 68.8%.

Ooma has a long-term earnings growth rate of 47.7%.

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